Socialist Republic of Vietnam

In 2003, Vietnam was one of the countries that reached the high economic growth rate. Regarding economic international integration, Vietnam continued to actively participate in the regional integration process and was preparing to join the World Trade Organization (WTO). In this first issue of the year, Deputy Prime Minister Vu Khoan granted an interview to Vietnam Pictorial, reviewing achievements and shortcomings of the Vietnamese economy in the last year.

Vietnam Pictorial (VNP): Please Dty. Prime Minister, would you give us, first of all, a brief outline of our economic development in the past year of 2003?

Dty. PM Vu Khoan: We may be pleased with the socio-economic development of our country in 2003, since, despite the very complicated developments of the world's economic and political situation, coupled with the impacts of never-ending natural catastrophes and of the SARS pandemic, we recorded the second highest growth rate in the region, after China. We fulfilled and over-fulfilled virtually all the targets set, satisfactorily settling many of the social problems, making fresh progress in the alleviation of hunger and reduction of poverty, taking the lead in triumphantly combating SARS, reducing traffic accidents, and successfully organizing SEA Games 22.

VNP: Would you please tell us of the advantages and difficulties in the foreign economic relations of Vietnam in the last year and some principal orientations for 2004?

Dty. PM Vu Khoan: Our foreign economic relations in 2003 have also recorded achievements worthy of great pride, up more than 20% in export turnover, and an improved environment for foreign investment. The donors' meeting at the end of the year pledged a total of more than USD 2.8 billion in official development assistance (ODA) to Vietnam - the highest ever seen. 2003 was also a year of regional and international economic integration with fresh advances in the implementation of AFTA (ASEAN Free Trade Area) commitments and in the promotion of negotiations for WTO (World Trade Organization) accession.

We owe this outcome to the tremendous endeavours of our people, which has enhanced the confidence of the international community. We have also made efforts to promote trade and investment, tourism and market expansion. These achievements were all the more highlighted against the background of the sluggish world economy, the volatile fluctuations of global market prices, the mounting trade protectionism, and stiff economic competition.

Much remains to be done in 2004. Boosting exports is no easy task at all, as we can hardly find new large markets and the prospective recovery of the global economy does not mean less bitter competition. A no less important duty is to reduce our imports and reduce our balance of trade. What's more, we should further improve the environment for investment to lure more foreign investment. Accelerating the ODA disbursement is quite imperative, too. In 2004, we will push further the negotiations for WTO accession, and in parallel with this procedure, we should enhance the competitiveness of our national economy, our enterprises and our products, and ameliorate our legal system in compliance with the integration.

VNP: Please advise us briefly on the Vietnamese implementation of its commitments to the international donors and its significance to their greater aid pledges?

Dty. PM Vu Khoan: When making pledges of aid to Vietnam, the international donors highly appreciated our policies of "Doi Moi" (renovation) and international economic integration, and our fairly efficient utilization of the foreign funding, above all in the development of the infrastructure and the solution of the social problems. The donors also ask us for better disbursement, greater transparency, a stronger fight against corruption and bureaucracy, acceleration of the reforms and a reduction of harassments. Such concerns conform to our desires and to the measures that we are adopting.

VNP: The regional and international economic integration provides Vietnam with certain advantages, but exposes its enterprises to tough competition. What has the Vietnamese Government done to get ready to join the WTO?

Dty. PM Vu Khoan: The biggest challenge posed by the integration lies in the fact that our competitiveness is quite feeble. When dealing with competitiveness, it should be understood in all realms: the national economy, the enterprise, and the products and services. On the national level, the Government has been doing much to better improve the legal and regulatory instruments, maintain political stability, launch public administration reforms and combat corruption and bureaucracy, provide a business environment favourable for all economic sectors, make re-adjustments of tax and fee policies, broaden international relations and proceed with the negotiations on integration... The Government has also set orientations for the structural shift of production in an efficient manner, to meet the demands of the world market.

Within the legal framework established by the State, the enterprises should do their utmost to enhance their own competitiveness, with their competitive products and services in such a manner that their quality is improved and their prices reduced, in line with the demands of the world market.

VNP: Promoting trade is a major policy of the Government, which is aimed at fortifying and expanding export markets. Please advise us on what we can do in this realm, and what we should do to better keep promoting trade?

Dty. PM Vu Khoan: In a market economy, products must get to the consumer, therefore they should be advertised widely. With this awareness, the Government has, for the past few years, set high targets for trade promotion (in close association with investment and tourism promotion) and even mapped out a national programme. Under this Programme, the Government has rendered support and assistance to enterprises participating in fairs and exhibitions, organized rendez-vous for them to seek their partners, including taking them along on official missions, and setting up some centres to show Vietnamese products. The Government has also entrusted the Vietnamese diplomatic and trade representations overseas with their prime task of assisting the enterprises at home.

However, the main responsibility for trade promotion lies with the enterprises themselves. They should take the initiative and refrain from passively relying on the State, because only they themselves know what and where to sell, in what conditions; none of the State institutions can do this for them.

VNP: It is known that foreign investors tend to worry about the instability in real estate administration and pricing in Vietnam. Will the recent passage of the Land Law at the 4th Session of the 11th National Assembly dismiss this worry?

Dty. PM Vu Khoan: The question of land and ground clearance is really a touchy problem for both the State and the enterprises at home and abroad. It is hoped that the strict implementation of the Land Law, revised and amended and endorsed by the 4th Session of the 11th National Assembly will help settle some of the difficulties.

VNP: What will we focus on in 2004 to make a contribution to the implementation of the 2001-2005 plan for socio-economic development?

Dty. PM Vu Khoan: A task of prime importance is to mobilize all resources of the people, better utilize the ODA, lure more FDI, and more effectively use the State capital, to achieve a higher growth rate, with greater efficiency and a better solution for the social problems in order to ensure sustainable development.

VNP: Thank you.