Philippe Delalande is economic and political researcher from France who deeply understands Vietnam. He once worked as director of the Asia-Pacific Regional Bureau of Francophone Inter-Government Agency in Hanoi for five years and has written many books about Vietnam.

A VOV correspondent in Paris interviewed him about Vietnam’s economy and economic co-operation between Vietnam and France.

VOV: What’s your evaluation of how Vietnam’s economy has performed over the past 20 years?

Mr Philippe: Since 1990, Vietnam’s economy has made amazing progress with annual average growth of 7.5 percent. Even when many Southeast Asian countries were damaged by the Asian economic crisis in 1997-1998, the country’s economy still kept growing. In 1999 its economic growth rate reached 4.5 percent while other Southeast Asian countries, such as Thailand and Indonesia fell into crisis.

I think that the growth rate can be attributed to the consistent economic policy of integrating gradually into the global economy in line with the situation in Vietnam. In addition, Vietnam has maintained its macro-economic policy for 20 years, in which it has reduced public debt and the inflation rate, ensuring a balance budget and controlling the amount of currency in circulation.

VOV: You write in your books that one of Vietnam’s advantages is its political stability. Can you explain this?

Mr Philippe: Political stability is one of the main factors that has helped Vietnam pursue its economic development policy. Since 1990, most other regional countries, except Singapore, have experienced coup d’etats or political crises. Meanwhile Vietnam has achieved political stability – a factor that enable Vietnam go ahead with its renewal process.

VOV: Despite such significant achievements Vietnam is still facing a lot of challenges. What is the biggest challenge to Vietnam’s economy?

Mr Philippe: One of Vietnam’s weaknesses is its trade deficit. To deal with this, the country needs to improve its competitiveness by modernising businesses, which should have their own research and development departments to increase productivity and the quality of their products.

VOV: You are a member of the board that is organising a seminar to discuss Vietnam’s investment potential in Paris on May 5. What do you think about the prospect of economic co-operation between Vietnam and France?

Mr Philippe: In 1994-1995 when the Vietnam’s renewal process recorded many impressive results many French businesses came but felt disappointed about the cumbersome administrative procedures and finally left the country.

After the 1997-1998 economic crisis, French and European businesses left Southeast Asia for China. I hope that the seminar will encourage French businesses to return to Vietnam, especially at this time. As the when ASEAN-China free trade area already came into effect they can export their products from Vietnam to other Southeast Asian countries, even China.

VOV: Thank you very much.