(MPI) – Within the framework of attending the outreach session of the G7 Summit and visiting Canada of Prime Minister Nguyen Xuan Phuc and Vietnam’s high-level delegation. On June 8th, 2018, in Quebec, Canada, Vietnam’s Ministry of Planning and Investment in collaboration with Vietnam’s Embassy in Canada, Government of Quebec, Canada, the National Bank of Canada and the Canadian Chamber of Commerce and Industry, organized the Vietnam - Canada Business Roundtable.
At the meeting: MPI
Opening the Roundtable, Minister of Ministry of Planning and Investment Nguyen Chi Dung said, the relationship of Vietnam and Canada is standing before new opportunities, chances with the establishment of Comprehensive Partnership between the two countries in 2017. Vietnam and Canada are two members that positively boost the signing of the CPTPP, which creates a new-generation free economic block of 11 countries that represent 13% of the global gross domestic product, affirms that economic cooperation is still the predominant movement trend of the global political-economic space.
With the advantageous elements such as economic-geographical position, plentiful labor resources, large market connected with ASEAN region, which is integrating deeply and widely through 11 free trade agreements, dynamic economic development, Government’s efforts to accelerate business environment reformation, continuous enhancement of competitiveness, etc. Vietnam is selected as an attractive investment destination and highly appreciated by the international community.
Minister Nguyen Chi Dung said, despite the sensational relationship between Vietnam and Canada, the economic and investment relation as well as the two-way trade of the two countries is still modest and has not reached its full potential. This motivates the two countries to think of how to take the next step forward, to cooperate in order to make the most of the global economic and trade recovery, the Industrial Revolution 4.0 and to promote the potential strength of each side.
Minister Nguyen Chi Dung wished the Canadian enterprises to invest in fields such as finance- banking, tourism, real estate, energy, healthcare, education, infrastructure, information technology, etc. through forms such as M&A, participation in the process of equitization of SOEs or Private Public Partnership (PPP).
Speaking at the meeting, Prime Minister Nguyen Xuan Phuc welcomed the top enterprises of the two countries and said that over the years, Vietnam's economy has accomplished many achievements such as fast economic growth, ensuring macroeconomic stability, etc. In 2017, Vietnam’s economy earned various “records”, in which, GDP growth reached 6.81%, the highest rate in the last 10 years, GDP reached 240 billion USD, commercial scale reached 425 billion USD, FDI attraction reached about 37 billion USD. Vietnam is gradually becoming a market with a large purchasing power with per capita income of about 2,400 USD. In the first quarter of 2018, the GDP increased by 7.38%, the highest rate since 2008 until now. Asian Development Bank, World Bank has just raised the forecast of economic growth in Vietnam in 2018 to 6.5 - 7.1%.
Competitiveness and business environment of Vietnam is basically improved. The foreign business associations such as Eurocham, Jetro, Amcham, Cancham, Kocham, etc. all take Vietnam as a prioritized investment destination in ASEAN. According to WB’s report in 2017, Vietnam’s business environment ranked 68th out of 190 nations (up 30 places compared to 2012). According to the WEF, Vietnam’s competitiveness ranked at 55th out of 137 nations. According to the World Intellectual Property Organization, the Global Innovation Index of Vietnam ranked at 47th out of 127 nations.
Until now, Vietnam has attracted 325 billion USD of registered FDI capital from 127 countries, partners. Not to mention, various large transnational conglomerates chose Vietnam as the strategic production center, connected to the global supply chain. In May 2018, Moody's changed the outlook on Vietnam's ratings to B1 positive. Fitch Ratings raised Vietnam’s credit rating from BB- to BB.
Prime Minister Nguyen Xuan Phuc stated that the role and the international position of Vietnam have continued being enhanced. Vietnam was honored to be the guest of the G7 Outreach Session in May 2016, the G20 Outreach Session in July 2017 and the G7 Outreach Session this year in Canada. Especially, Vietnam successfully organized the 2017 APEC Leaders week, contributing a big part in the boosting of trade liberalization and regional economic links. The EVFTA agreement with the EU has completed legal review and is going to be signed and approved officially by the end of 2018.
Heading toward the goal of becoming a modern industrial country, Vietnam is striving to maintain the average GDP growth rate at 6.5 - 7% per year in the period 2016 to 2020, the commercial scale about 600 billion USD in 2020.
To achieve these goals, Vietnam determines on building a Government of integrity, creativity and action, serving businesses and people, synchronously implementing socio-economic development policies and international integrating, in order to enhance quality of growth, on the basis of increasing productivity and innovation – creativity, at the same time, actively taking advantage of the Industrial Revolution 4.0, developing digital economy and harmonizing the domestic economic sector with the foreign investment sector, enhancing competitiveness towards sustainable development. Vietnam boosts improvement of the business environment, rises to the top of ASEAN and heading toward the high standards of the Organization for Economic Co-operation and Development (OECD), as well as strictly enforcing the commitments on protection of intellectual property, encouraging innovative ideas, prioritizing to invest in high tech fields, creative start-up, etc.
Regarding the restructuring of economic sectors, the equitization of SOEs, Prime Minister Nguyen Xuan Phuc affirmed that Vietnam is boosting this process on the fields of aviation, electricity, oil and gas, telecommunications, transport infrastructure, etc. This is an opportunity for the foreign investors, including Canadian ones, to purchase shares and become the strategic partners/ shareholders, to invest, develop production and do business with high technology application, develop electronic payment, stocks, insurance, establish investment funds, trust, and asset management companies, etc. At the same time, Vietnam welcomes the FDI projects investing in infrastructure development, logistics, manufacturing, energy, high-quality services, etc.
At the meeting, representatives from the Government of Quebec State, the National Bank of Canada and the Canadian Chamber of Commerce and Industry agreed that the relationship between the two countries is developing increasingly well, at the same time assessed that the potentials and opportunities for investment in Vietnam will make Vietnam an attractive destination for foreign investors in general and Canadian businesses in particular in the future.
Also at the meeting, the Prime Minister Nguyen Xuan Phuc and other delegates witnessed the Ceremony of Awarding Memorandums of Cooperation, including a letter of intent on a strategic partnership in science, technology and innovation between the Vietnamese Ministry of Science and Technology and the Quebec Research Funds; an MoU on a technical assistance package between the Airports Corporation of Viet Nam and the National Bank of Canada; an MoU on training and research co-operation between Viet Nam’s National Economics University and the University of Quebec in Montreal; and an MoU on business co-operation in the Smartclass+ Language Teaching Platform worth 100 million USD between Hoang Thanh Trade and Technology Development Co Ltd and Robotel Inc of Canada./.
Ministry of Planning and Investment