Vietnam will overcome US-China trade war influences: Minister
Updated : Monday, July 16, 2018 3:12 PM (GMT+0700)

Asa country engaged in the development of the global value chain, Vietnam islikely to be affected by the US-China trade war, stated Minister of Industryand Trade Tran Tuan Anh.

 
Minister of Industry and Trade Tran Tuan Anh - Photo: VNA

In an interview with Vietnam News Agency, the minister notedVietnam has suffered from many fluctuations in the international market such asrises and falls in the exchange rate and stock markets in many countries, andthe increase in the cost of basic goods such as petrol.

The instability will affectthe confidence of investors and consumers, he said, adding that if thesituation persists, it will harm growth, inflation, employment and many otheraspects of the macro-economy.

Trade barriers will alsoinfluence the regional and global production chain. Vietnam is also located inAsia-Pacific, the region likely to be worst hit by the trade war, said theminister.

He underlined that tradeinstability will also lead to difficulties for enterprises and production,requiring timely responses from management agencies.

However, the impacts of theUS-China trade war to Vietnam will not be as direct as in other countries.

Despite the highly opennature of the market, Vietnam has used careful macro-economic policies.Therefore, in the long term, Vietnam is able to cope with negative developmentsabroad.

Notably, Fitch Ratings hasraised Vietnam’s sovereign rating based on rising foreign-exchange reserves andstrong economic growth, which shows the confidence of the internationalcommunity in the country’s policies.

Vietnam has also launchedmeasures to minimise risks and seek new markets for businesses, includingsigning free trade agreements (FTAs) like the Comprehensive and ProgressiveAgreement for Trans-Pacific Partnership (CPTPP), the free trade agreement withthe EU (EVFTA) and the Regional Comprehensive Economic Partnership (RCEP), statedMinister Anh.

He said that the Law onManagement of Foreign Trade, which took effect on January 1, 2018, includesspecific measures to strengthen the efficiency of State management onimport-export activities. 

Over the years, Vietnam alsohas taken a more proactive approach to cope with the negative impacts ofinternational trade by applying trade defence measures.

“Despite concern over recentinternational trade developments, we can believe that the Vietnamese economywill overcome difficulties. Of course, this also depends on the activeness ofState management agencies and enterprises in keeping updated on new changes andtaking timely steps”, stated the minister.

Regarding urgent measuresthat Vietnam should take to make full use of advantages from multilateral tradesystems such as the WTO and APEC, the minister said that over the past 30years, Vietnam has been deeply integrating into the regional and world economyand become a responsible member of international forums and organisations.

Compared to 1986 when exportrevenue was only 789.1 million USD, Vietnam’s exports in 2013 rose by about 167times to 132.2 billion USD, and by 271 times in 2017 to 213.77 billion USD.

To fully benefit frominternational integration, it is necessary to popularise commitments in FTAs topeople and businesses as well as trade associations, while adjusting the legalsystem to suit international commitments, creating a favourable environment forenterprises, he said.

He also stressed the need toincrease trade-investment promotion activities in markets Vietnam has signed atrade deal with.

The minister advisedbusinesses to improve the competitiveness and quality of their products, whileraising their awareness of international trade and coordinating in internationaltrade lawsuits.

He stressed that to maintainstability, enterprises should seek information on regulations from multilateraltrade forums and FTAs to make sure they understand the commitments of Vietnamas well as preferential taxes.

“Besides, enterprises shouldchange their business mindset, considering pressure in competition asmotivation for renovation and development”, he said.

The minister also suggestedthat businesses should adapt to changes in the business environment throughadjusting their middle and long-term plans, while building strategies todiversify their products and export markets to reduce risks, designingpreventive plans to deal with problems in export and fostering links with otherbusinesses and consultations partners.

Minister Anh also underlinedthe need for State management agencies to help enterprises solve difficulties.

Source:VNA

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