VIETNAM IN ASEAN

VU Ba Phu (Mr.)Minister Counsellor

Head of Commercial Section Vietnam Embassy in Belgium and EU

OUTLINE

1. VIETNAM’S GEOGRAPHY2. POLITICAL SYSTEM3. VIETNAM’S FOREIGN POLICY4. ECONOMY OF VIETNAM5. ASEAN 6. ROLE OF VIETNAM IN ASEAN7. VIETNAM WITH EU AND THE US8. CONCLUSION

6/11/2012

1. VIETNAM’S GEOGRAPHY

Located on the Indochina peninsula in Southeast Asia, Vietnam has a long land border of 4,550 km and a long coastline of 3,260 km;

Capital: HanoiArea: 331.968km2

Population: 89.5 millions (2011)

Three quarters of the territory are low mountains and hilly regions; the soil is highly fertile, favorable for agriculture and forestry;

6/11/2012

2. POLITICAL SYSTEM

Vietnam is a politically stable system

6/11/2012

3. VIETNAM’S FOREIGN POLICY

Consistent policy for peace, friendship, cooperation and development; of independence, self-reliance, diversification and multilateralisation of relations, pro-active international integration;

Vietnam aims to be a reliable friend and responsible partner of the international community;

Vietnam is member of ASEAN, APEC, ASEM, WTO, UN, and others.

6/11/2012

4. ECONOMY OF VIETNAM (1) Vietnam embarked on reforms (Đổi Mới)

for more than 2 decades, achieved enormous progresses in socio-economic developments;

2011: • Total GDP: US$123.6 billion, • Real GDP growth rate: 5.9%, • GDP per capita: US$1,392 comparing to US$3,676 of ASEAN on average,• Export value: US$95.2 billion, • Import value: US$104.5 billion,

Vietnam has become become world´s major exporter of rice, coffee, textiles, crude oil.

6/11/2012

4. ECONOMY OF VIETNAM (2)

GDP growth rate 2006 - 2011:

2006 2007 2008 2009 2010 2011

-2.0

2.0

6.0

10.0

8.2 8.5

6.15.4

6.95.9

%

Real GDP growth rate

6/11/2012

4. ECONOMY OF VIETNAM (3)

Top 10 exports of Vietnam (the first 6 months of 2012) US$ billion:

1. Textile and clothing 6.8 (>15)2. Shoes and footwear 3.5 (>9)3. Sea produce 2.8 (>7)4. Crude oil 3.7 (>9)5. Electronics 3.3 (>8)6. Wood furniture 2.1 (>5)7. Rice 1.7 (>5)8. Precious stones 2.82 (>6)9. Machineries 2.6 (>6)10. Rubber 1.2 (>3)

6/11/2012

4. ECONOMY OF VIETNAM (4)

Five major markets for Vietnam´s exports:

1. USA 24.44%2. EU 19.55%3. ASEAN 17.77%4. Japan 13.27%5. China 12.55%

6/11/2012

5. ASEAN (1) ASEAN (Association of Southeast Asian Nations) was

founded on August 8th, 1967 from five founders: Indonesia, Malaysia, the Philippines, Singapore and Thailand;

Later admitted: • Brunei: 1984• Vietnam: 1995• Laos and Myanmar: 1997• Cambodia: 1999.

6/11/2012

5. ASEAN (2)

To become one of the most dynamic economic forum in the world:

• Area: 4.5 million square kilometers;• Population: over 575 million;• Total annual GDP generation: US$1,281 billion;• Total export value: US$750 billion;• Global leading supplier of rubber: 90% of the world’s

volume; timber (60%) as well as rice, sugar, and pineapples;• Industrial products: textiles, electronics, consumer products

are penetrating the world market.

6/11/2012

6. ROLE OF VIETNAM IN ASEAN (1)

Full member: Vietnam became a full member of ASEAN on 28 July 1995. Joined the ASEAN Regional Forum (ARF) in 1995 and became one of the founders of the forum;

Over the past 17 years, Vietnam has actively and proactively taken part in ASEAN cooperation;

Vietnam accelerated the admission of Laos, Myanmar and Cambodia to ASEAN;

Made active contribution to maintaining solidarity in the bloc, pushing the roadmap to build ASEAN Community and implement the ASEAN Charter.

6/11/2012

6. ROLE OF VIETNAM IN ASEAN (2)

3 years after accession: • Vietnam successfully hosted the 6th ASEAN Summit in Hanoi in

December 1998; • Helped ASEAN consolidate solidarity and its international position

amidst the impact of Asian financial crisis 1997; • Ratified the Hanoi Plan of Action in 1997 to realise ASEAN Vision 2020;

July 2000 - 2001: • Presidency of the ASEAN Standing Committee (ASC); • Successfully hosted the 34th ASEAN Ministerial Meeting (AMM) and

related meetings and the 23rd General Assembly of the ASEAN Inter-Parliamentary Organisation (AIPO) in 2002.

6/11/2012

6. ROLE OF VIETNAM IN ASEAN (3)

2010: Successfully performed the presidency of ASEAN for the second time: organised 16th ASEAN Summit in Hanoi in April 2010 and ministerial level meetings and other related meetings in Hanoi in July 2010;

2011: • From January – June: successfully performed the role of Chairman for ASEAN -

Brussels Sub - Committee on Trade: gathered ASEAN commercial counsellors to meet and exchange information on trade relation with EU;

• From June – December: successfully completed the role of Chairman for ASEAN – Brussels Committee: hosted meetings for ASEAN Ambassadors to exchange information on each member’s relation to EU and other visit activities.

6/11/2012

6. ROLE OF VIETNAM IN ASEAN (4)

Vietnam signed the Protocol for the accession of to the Agreement on the Common Effective Preferential Tariff Scheme CEPT for the ASEAN FREE TRADE AREA (AFTA) on 15 December, 1995 during the fifth ASEAN summit in Bangkok;

On 1 January 1996, Vietnam implemented her first package for CEPT scheme.

6/11/2012

6. ROLE OF VIETNAM IN ASEAN (5)

Vietnam actively engaged in multilateral free trade agreement between ASEAN and other countries, namely:

• ASEAN – China Free Trade Area: signed on 5/11/2002; • ASEAN – Japan Free Trade Area: signed on 8/10/2003; • ASEAN – India Free Trade Area: signed on 8/10/2003, amended

on 13/8/2009; • ASEAN – Republic of Korea Free Trade Area: signed on

13/12/2005;• ASEAN – Australia New Zealand Free Trade Area: signed on

27/2/2009.

6/11/2012

6. ROLE OF VIETNAM IN ASEAN (6)

ASEAN membership has enabled Vietnam to step up cooperation with its ASEAN partners, especially the bigger countries, while participating more in inter-regional or international cooperation framework. These include ASEAN+3, the East Asia Summit (EAS), the Asia-Pacific Economic Cooperation (APEC Forum);

Enabled Vietnam to gain real socio-cultural and commercial-economic benefits, which have aided the country’s socio-economic development.

6/11/2012

6. ROLE OF VIETNAM IN ASEAN (7)

Gained access to scientific and technological advances and modern methods of management plus enhanced institutional capacity;

Enabled Vietnam to attract more foreign investment capital and given access to other markets, both regionally and globally. In the first 6 months of 2012, among ASEAN countries, Singapore is the biggest investor in Vietnam (US$23.3 billion), followed by Malaysia (US$11.3 billion), Thailand (US$5.9 billion) and Brunei (US$4.8 billion).

6/11/2012

7. VIETNAM WITH EU AND THE US (1)

With EU:• Vietnam signed Partnership Cooperation Agreement (PCA) with

EU on 25th of June, 2012; • Vietnam is the 3rd country in ASEAN to start FTA negotiation with

EU (after Singapore and Malaysia). First round was held in Hanoi on 8th October, 2012 with positive outcomes;

• An important economic partner of EU since the economic structures of Vietnam and EU are complementary with each other;

• Ahead of other countries in ASEAN in commencing FTA negotiation.

6/11/2012

7. VIETNAM WITH EU AND THE US (2)

WITH THE US: • Vietnam is an important economic partner of the US; • Vietnam joined TPP (Trans-Pacific Strategic Economic

Partnership Agreement) negotiation right from the first round in March 2010 in Australia;

• Other ASEAN countries: Brunei and Singapore, Malaysia (joined from the 3rd round).

6/11/2012

8. CONCLUSION

As an integral part of ASEAN, Vietnam continues to play an important role to closely work with its partners to ensure a brighter future for ASEAN and drive ASEAN into a new stage of development, leading to an ASEAN Economic Community by 2015.

6/11/2012

THANK YOU FOR YOUR KIND ATTENTION

6/11/2012