President gives APEC optimistic forecasts on Vietnam's economic outlook

This comes after President Phuc delivered a speech at the third meeting of the Asia-Pacific Economic Cooperation (APEC) Business Advisory Council (ABAC) which was held in Ha Long in the northern province of Quang Ninh on July 27, with the event featuring the participation of 150 delegates of APEC member economies.

The Vietnamese State leader affirmed that the country and other APEC economies always highly appreciate and support the initiatives and recommendations made by the APEC Business Advisory Council to APEC leaders. He therefore requested that the Council propose a range of initiatives and measures aimed at promoting trade and investment, as well as connecting with broken supply chains.

This year has seen, Thailand take on the role of APEC Chair, meaning the role of chairman of the ABAC 2022 will also be held by Thailand.

At this third meeting, 150 delegates of APEC economies continued to propose ideas to APEC leaders within the framework of APEC Week in Thailand, which is slated for November this year.

President Phuc’s attendance at the meeting highlights how the country warmly welcomes the APEC Business Advisory Council, as well as investors from 21 member economies, to Vietnam.

Upon welcoming the ABAC to Ha Long Bay, a wonder and world natural heritage, the President noted that it shows the nation and other countries have brought successfully brought the COVID-19 pandemic under control, thereby making APEC co-operation return to a new, stronger, and more effective normal.

Amid the world and the APEC region facing unpredictable fluctuations caused by the epidemic, geopolitical competition, disruptions in supply chains, and turmoil in the financial market, the President said that this challenges the bravery, cohesion, and co-operation of APEC member economies, causing great impacts on firms.

The meeting aims to step up co-operation in the APEC private business sector, jointly find ways to restore production and business, as well as promoting trade, investment, and reconnection of supply chains towards innovative, sustainable, and inclusive development in the region.

The Council are set to make a range of fresh recommendations to help the APEC Leaders’ meeting which is scheduled for November, as well as making drastic decisions on facilitating businesses and promoting trade and investment liberalisation.

President Phuc affirmed the Vietnamese State's stance of consistently supporting and strongly promoting the implementation of the Aotearoa Plan on the APEC 2040 vision. This is along with promoting the APEC 2017 (Vietnam) Joint Statement on 'Creating New Dynamism, Fostering A Shared Future', through the implementation of effective co-operative actions on pandemic response, growth model innovation, innovative digital transformation, climate change adaptation and inclusive development.

In line with this, the State leader hopes that ABAC will come up with many new and effective proposals and solutions which can enhance trade and investment in APEC with the central role of the WTO system, whilst connecting both broken supply chains and human resources.

This is in addition to supporting firms in maintaining production and business activities on the basis of the digital economy, production through green technologies and green agriculture, and stepping up ties in developing clean energy, renewable energy, and reducing greenhouse gas emissions in the region.

Vietnam and APEC economies continue to appreciate and support the initiatives and recommendations put forward by the ABAC community and report to the upcoming APEC Leaders Dialogue.

In his speech, President Phuc also mentioned the IMF's optimistic forecasts regarding Vietnamese economic prospects, in which the country not only continues to ensure macroeconomic stabilization but also enjoys strong recovery with GDP growth of 6% this year, rising to 7.2% next year.

Trade turnover last year expanded by 23% to reach roughly US$670 billion, thereby putting Vietnam in the group of 20 countries with the largest trade scale in the world.

The IMF also predicted that by 2025, the country’s economic scale will rank third in Southeast Asia with a GDP of more than US$570 billion. In line with this the nation remains steadfast and strives towards becoming a developed, high-income country by 2045.

Moreover, the nation is seen as an attractive investment destination in the world with nearly 35,000 valid FDI projects, totally capitalized at close to US$430 billion, and run by tens of thousands of businesses from 140 countries and territories globally.

According to the details of the UN Report, Vietnam is among the top 20 countries attracting FDI globally, with the nation rising to the top of ASEAN in terms of the business investment environment and approaching the Organisation for Economic Cooperation and Development (OECD) standards.

Not only has the domestic market of 100 million people increased its purchasing power, the President said, but the country has become involved in 15 free trade agreements (FTAs), including new generation agreements with high and comprehensive standards. This is in addition to open market incentives such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA).

Furthermore, from January 1 the Regional Comprehensive Economic Partnership Agreement (RCEP) came into effect, with a large scale accounting for 30% of global GDP and 15 APEC member economies participating in it, of which the nation is an active member.

Previously, President Phuc had met with a delegation of the ABAC, led by Kriengkrai Thiennukul, chair of the APEC Business Advisory Council - ABAC 2022.

The ABAC leader said that President Phuc’s attendance and his important speech at the meeting clearly demonstrated strong Vietnamese commitment to dealing with issues of concern among APEC firms.

The main topics under discussion include bolstering co-operation, linking fresh and creative ideas with potential, and incentivising the APEC community to facilitate digitisation.

The Council therefore proposed groups of strong solutions which can promote trade, digitisation, and cybersecurity, as well as supporting small and micro enterprises and developing the circular economy and financial ecosystems.

The Vietnamese President expressed his great appreciation to the ABAC for putting forth many important goals and solutions which can promote APEC's trade and investment activities. He strongly believes that this meeting will give proposals and initiatives on business facilitation and trade and investment liberalisation which can be sent to APEC leaders at the forthcoming summit slated for November.