Vietnam looks towards APEC Summit 2017

What economic benefits has Vietnam gained from APEC membership over nearly two decades?

APEC is a leading economic cooperation mechanism in the region and the world, guiding the trade and investment liberalization process, and promoting cooperation and links at different levels for peace and development. APEC agreements have contributed to a three-fold reduction in average tariff rates in the region and a seven-fold increase in intraregional trade.

Over the last 17 years since Vietnam joined APEC, the country’s role and position have improved. APEC gathers most of Vietnam’s strategic economic and trading partners. Seventy-eight percent of foreign direct investment (FDI) in Vietnam, 79 percent of its total foreign trade value, and 70 percent of foreign tourists to the country come from APEC. Thirteen out of 15 free trade agreements (FTAs) that Vietnam has signed or is negotiating are with APEC partners.

Taking advantage of Vietnam’s position as an APEC member, Vietnamese goods can penetrate the strongest markets in APEC and enjoy decreasing tax rates under its trade liberalization roadmap.

Does APEC have any impact on Vietnam’s role in FTAs?

Actually, there is an interaction between FTAs and APEC. Several significant FTAs that Vietnam has signed have been with APEC members. New-generation trade and investment issues in APEC are those negotiated by Vietnam and FTA partners. So by chance, APEC has become a supplementary factor to the many new-generation FTAs that occurred in recent times. APEC continues to be an important regional mechanism in a context where Vietnam is making greater efforts to boost deeper and broader international integration, helping Vietnam improve its multilateral relations and its role in Asia-Pacific cooperation mechanisms.

Vietnam will host the APEC Summit in 2017. What has MoIT done to prepare for this event?

MoIT is coordinating with the Ministry of Foreign Affairs to prepare for the summit. A national committee for APEC will be established this month including leaders of concerned ministries and sectors. We will continue working with APEC members to reach a consensus on the combination between Vietnam’s priorities and APEC’s common priorities.

Nguyen Huong