Minister of Industry and Trade Tran Tuan Anh (Photo: VNA)Hanoi (VNA) – As a country engaged in the development of theglobal value chain, Vietnam is likely to be affected by the US-China trade war,stated Minister of Industry and Trade Tran Tuan Anh.
In an interview with Vietnam News Agency, the minister noted Vietnam hassuffered from many fluctuations in the international market such as rises andfalls in the exchange rate and stock markets in many countries, and theincrease in the cost of basic goods such as petrol.
The instability will affect the confidence of investors and consumers,he said, adding that if the situation persists, it will harm growth, inflation,employment and many other aspects of the macro-economy.
Trade barriers will also influence the regional and global productionchain. Vietnam is also located in Asia-Pacific, the region likely to be worsthit by the trade war, said the minister.
He underlined that trade instability will also lead to difficulties forenterprises and production, requiring timely responses from managementagencies.
However, the impacts of the US-China trade war to Vietnam will not be asdirect as in other countries.
Despite the highly open nature of the market, Vietnam has used carefulmacro-economic policies. Therefore, in the long term, Vietnam is able to copewith negative developments abroad.
Notably, Fitch Ratings has raised Vietnam’s sovereign rating based onrising foreign-exchange reserves and strong economic growth, which shows theconfidence of the international community in the country’s policies.
Vietnam has also launched measures to minimise risks and seek newmarkets for businesses, including signing free trade agreements (FTAs) like theComprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP),the free trade agreement with the EU (EVFTA) and the Regional ComprehensiveEconomic Partnership (RCEP), stated Minister Anh.
He said that the Law on Management of Foreign Trade, which took effecton January 1, 2018, includes specific measures to strengthen the efficiency ofState management on import-export activities.
Over the years, Vietnam also has taken a more proactive approach to copewith the negative impacts of international trade by applying trade defencemeasures.
“Despite concern over recent international trade developments, we canbelieve that the Vietnamese economy will overcome difficulties. Of course, thisalso depends on the activeness of State management agencies and enterprises in keepingupdated on new changes and taking timely steps,” stated the minister.
Regarding urgent measures that Vietnam should take to make full use ofadvantages from multilateral trade systems such as the WTO and APEC, theminister said that over the past 30 years, Vietnam has been deeply integratinginto the regional and world economy and become a responsible member of internationalforums and organisations.
Compared to 1986 when export revenue was only 789.1 million USD,Vietnam’s exports in 2013 rose by about 167 times to 132.2 billion USD, and by271 times in 2017 to 213.77 billion USD.
To fully benefit from international integration, it is necessary to popularisecommitments in FTAs to people and businesses as well as trade associations,while adjusting the legal system to suit international commitments, creating a favourableenvironment for enterprises, he said.
He also stressed the need to increase trade-investment promotion activitiesin markets Vietnam has signed a trade deal with.
The minister advised businesses to improve the competitiveness andquality of their products, while raising their awareness of international tradeand coordinating in international trade lawsuits.
He stressed that to maintain stability, enterprises should seekinformation on regulations from multilateral trade forums and FTAs to make surethey understand the commitments of Vietnam as well as preferential taxes.
“Besides, enterprises should change their business mindset, considering pressurein competition as motivation for renovation and development,” he said.
The minister also suggested that businesses should adapt to changes inthe business environment through adjusting their middle and long-term plans,while building strategies to diversify their products and export markets toreduce risks, designing preventive plans to deal with problems in export andfostering links with other businesses and consultations partners.
Minister Anh also underlined the need for State management agencies tohelp enterprises solve difficulties.-VNA
VNA
