INTERVIEW Ambassador Nguyen Tien Phong : “Viet Nam is a friend, a trusted partner and a responsible member of the international community”

The Socialist Republic of Viet Nam is emerging economy in ASEAN region and in the World as well. The credit goes to the visionary leadership and committed public. Both have struggled a long way to reach the milestone where they have set an example for developing countries that can improve the lives of their people by walking on the foot prints of this great nation of South East Asia. Viet Nam is celebrating 78th National Day on 02 Sep 2023. We had an exclusive Interview with H.E. Mr. Nguyen Tien Phong, Ambassador of Viet Nam on this auspicious occasion.

Here are the main points of the Interview for information of our readers.

Q – How Viet Nam recovered and restored it’s economy from the Zero Point after years long War ?

A – On the occasion of the 78th National Day of the Socialist Republic of Viet Nam, I would like to quote the affirmation of the General Secretary of the Communist Party of Viet Nam, H.E. Prof. Dr. Nguyen Phu Trong at 13th Party’s Congress in Jan 2021:

“With all humility, we can still say that: Our country has never enjoyed such fortunes, potentials, international status and prestige as they are today. All this combined constitutes a pride, a driving force, an important resource, and a conviction for our entire Party, people and armed forces to overcome whatever difficulties and challenges, continue with firm steps on the road of comprehensive and concerted renewal; and develop the country expeditiously and sustainably”.

When the Viet Nam War ended in 1975 and the country reunified, Viet Nam’s economy was one of the poorest in the world. The milestone and turning point came in 1986 when the Party and State introduced “Doi Moi”, a series of economic and then political innovation, and steered the country to becoming a “socialist-oriented market economy” with great achievements acknowledged by international community as you already know.

After 37 years (1986 – 2023) of reforms/renovations/renewal/ Doi Moi (in Vietnamese), Viet Nam’s spectacular economic development is crucially and decidedly attributed to the Communist Party’s successful leadership.

The achievements of 35 years’ implementation of the renewal process have continued affirming our Party’s renewal line as judicious and creative. Such great achievements of historic significance crystallize the creativeness of our Party and people, and assert that our country’s road to socialism is suitable with Viet Nam’s reality and the times’ development trend; and confirm that the Party’s judicious leadership represents the primary determinant of the Vietnamese revolution’s success”.

First and foremost, it must be affirmed that the development of a socialist-oriented market economy is a fundamental and creative theoretical breakthrough of the Communist Party of Viet Nam and is one of the measures to realize the goal of building socialism in Viet Nam. The achievements of developing a socialist-oriented market economy over the past 37 years have left many valuable theoretical and practical lessons for the new development period of the country.

Going back to the time before Doi Moi in 1986, Viet Nam fell into a severe socio-economic crisis, with an inflation rate of 774.7%, a total national income of about 14 billion USD, per capita income of about 280 USD. In 2022, with nearly 100 million people, the country’s GDP and GDP per-capita income reached 413.0 billion and 4,163 USD respectively; export-import turnover reached 732.5 billion USD with 371.85 billion USD of export and 360.65 billion USD of import. Since 1988, Viet Nam has been luring 37,065 active foreign-funded projects registered at over 445.87 billion USD.

Poverty rates (1.90 USD a day) declined sharply from over 32% in 2011 to below 2% last year 2022. Three years from Doi Moi’s start, from a country faced with perpetual food shortages, Viet Nam become the world’s second largest rice exporter in 1989. Viet Nam economic growth has been remarkable, with an average of 6,5- 7% annually.

The United Nations recognized Viet Nam as one of the leading countries in realizing the Millennium Development Goals, especially on poverty reduction, gender equality, healthcare and education. The middle class has developed rapidly, spurring consumption and national economic development. The material and spiritual life of the people has constantly improved.

The vital key to those achievements was the policy decision by the Party in Doi Moi to shift the economy from a centrally planned model to a socialist-oriented market economy, promoting industrialization and modernization and active international integration. The depletion of the economy under the centrally planned model forced Viet Nam to undertake reforms at the end of the 1970s and early 1980s.

In this period, the Party advocated closely combining economic innovation with political innovation, taking the task of economic development as a central duty, building the Party as the key; focusing on economic development and from economic achievements, gradually renewing the political system, renewing theoretical thinking, first of all, economic thinking, renewing the working style and leadership method of the Party. This helped liberate, activate and tap in the huge production forces of the country in terms of labor, cultivate soil, industrial potentials and positive aspects of market forces.

The Doi Moi policy was introduced in 1986 and the turning point in its economic development happened in 1989 when the radical market-oriented reform was put into place. From recognition of the existence and essential role of a multi-ownership structure in the economy, Viet Nam adopted a radical and comprehensive reform package including enhancing freedom of choice for economic units and competition, almost complete price liberalization, large devaluation and unification of exchange rates, agricultural reforms through recognition of farming household as a basic economic unit and long-term land-use rights in the late 1980s.

Several measures to encourage the private sector to participate in production and distribution along with attempts to make State-owned enterprises (SOEs) more viable by reducing subsidies and giving them greater autonomy proved to be efficient in increasing output and expanding services and construction. The 1989 market-oriented reform package is considered very successful in the context that the country was still under an embargo.

Changing the economic model, liberating production capacity, upholding the role of the market economy and at the same time associated with the State’s management in the socialist orientation is the fundamental framework for the successful implementation of economic policies.

Macro-economic policies, promoting domestic production are well coordinated with attracting capital from outside from international economic, financial and monetary institutions, especially attracting foreign direct investment. FDI has helped Viet Nam solve the problem of thirst for investment capital for growth and development, thereby overcoming the economic crisis (not enough food to eat), meeting domestic demand and boosting exports.

It is necessary to emphasize the breakthrough process of mindsets changing, policy shifting of the Communist Party of Viet Nam, recognizing the role of the market economy, using market forces and laws to arouse and maximize domestic resources for production and export.

Regarding the macroeconomic managements, the Government flexibly combined monetary, fiscal, and exchange rate policies in line with gradual international economic integration then shifted to comprehensive integration in all fields are keys for the success story of Viet Nam.

The 37-year period of implementation of innovation can be summarized through four strategic orientations, including: Selection of development model; actively integrate into the world, participate in the globalization process but still maintain independence and self-reliance; effectively exploiting scientific – technological achievements; ability to cope with uncertainties and unpredictable impacts on the development process of the country.

Viet Nam is now sparing no effort with the steadfastly aspiration to develop and become a prosperous society, and a middle-income country by 2030 and high-income country by 2045 – the Celebrating time of the country’s 100th Anniversary.

Q – Viet Nam has made tremendous growth in SME’s. Pakistan also attaches great Importance to SMEs for economic transformation of society and community. What are the prospects that Viet Nam can share experiences with Pakistan?

A – Small and medium-sized enterprises (SMEs) are the backbone of many economies around the world. This is especially true in Viet Nam, where SMEs contribute nearly 45% of GDP and 50% of employment. Up to now, the country has nearly 900 thousand operating businesses, but of which only about 2% are large enterprises, the rest of 98% are mainly SMEs.

We all know that the more supportive the environment, the more likely businesses are to succeed, even during times of crisis. In Viet Nam, SMEs play an important role as a buffer against shocks to the economy, such as the Covid pandemic, supply chain disruptions, and maintaining domestic demand when exports face difficulties.

The government, departments, and organizations have implemented numerous solutions to support small and medium-sized enterprises, such as:

– Complete market policies, support businesses in building brands, encourage the development of consulting services or build a national system to provide free legal and business information and consultation.

– Implemented a series of policies to help SMEs expand their business, associate, enter into joint ventures, diversify industries and reach out to and integrate in international markets.

– Create favorable conditions for SMEs to access capital from banks, have preferential policies on interest rates and taxes for SMEs to grow up.

– Support SMEs to quickly and effectively in digital transformation, create optimal symmetry in the allocation of SMEs resources among provinces and cities nationwide, apply modern management technology, innovate products, improve product quality, as well as provide geographical indications, trace origins; participate in national and global value chains.

– Create incentives for SMEs to join green growth projects via develop a handbook on green credit access for SMEs, which will guide them on conditions and procedures to receive credit support for green development from the fund.

Q – Viet Nam is mostly known in Pakistan for War of Viet Nam. Can you share the tourist attractions for Pakistani visitors in your country?

A – Over thousands – years history of building and defending the country, the Vietnamese people are always proud of their patriotic tradition through the ages, the tradition of solidarity against foreign invaders to protect independence, sovereignty and territorial integrity – the core and most sacred values and interests that form the people and country of Viet Nam.

From ancient times to the present, after each war to protect independence, sovereignty and territorial integrity, Viet Nam has always shown the spirit of peace and re-established its diplomatic relations heading to a peaceful environment to “rebuild and develop” the country. Viet Nam is a nation with “full of heroism, humanism, amity and tolerance, and always hold truth, justice and righteousness in the greatest esteem”. The history of Viet Nam in the 20th century, especially after the unification of the country on April 30, 1975 until now is not out of this tradition.

On Viet Nam’s National Day, I would like to convey the message of Party, State of Viet Nam: ” Viet Nam wants to leave the past behind and look forward to the future. Viet Nam is a friend, a trusted partner and a responsible member of the international community.”

Therefore, it is the mission of all Vietnamese people, especially diplomats like us to introduce, bring our friends into the awareness of Viet Nam, a country, nation with a heroic history and traditions, with deep layers of cultural values, with solidarity, cooperation, hospitality, culinary values, and scenic spots, landscapes, with achievements in economic development. This will contribute remarkably to change the mindsets  Viet Nam from being attached with the wars, for example Viet Nam war as you asked, to an image of a country of peace, safety, activeness, achievements in sustainable development and of course with the values and essences mentioned above.

With regard to tourist attraction, Viet Nam is known as a small S-shaped strip of land, but it has a patriotic spirit and preserves the heroic country. Over thousands of years of nation-building and preservation, the remaining historical relics serve as evidence of time and are included in poetry and history books, such as the Temple of the Hung Kings, Hoan Kiem Lake – Hanoi, Hoa Lu Ancient Capital – Ninh Binh,… or famous religious tourist Bai Dinh Pagoda, Perfume Pagoda,… Especially, Viet Nam always takes great pride in numerous beautiful landscapes that captivate people’s hearts, including many UNESCO-recognized world heritage sites: Ha Long Bay, Hoi An Ancient Town, Phong Nha-Ke Bang National Park.

Q – Pakistan in Arabian Sea and Viet Nam in South China Sea have highly sensitive roles for peace and safe marine trade. This brings both countries closer for cooperation. What is the status between both states in this sector?

A – Regarding the question about South China Sea (known in Viet Nam as the East Sea) we would like to affirm, as repeatedly affirmed by our Party and State that Viet Nam has full legal basis and historical evidence to assert sovereignty over the Hoang Sa (Paracel) and Truong Sa (Spratly) in accordance with international law, as well as to assert sovereignty, sovereign rights and jurisdictions towards Vietnamese waters in accordance with the 1982 UNCLOS.

Viet Nam wishes to reaffirm that our consistent position is that all activities in the South China Sea need to strictly adhere to international law, respect the sovereignty, sovereign rights, and jurisdiction towards our waters as established by the 1982 United Nations Convention on the Law of the Sea (UNCLOS).

Viet Nam supports countries’ handling of disagreements by respecting the lawful rights and interests of countries and by adhering to the 1982 UNCLOS and to maintain the peace, stability, and development in the region.

With this policy, Viet Nam stands ready to discuss with countries to resolve all the issues which are historical legacies to contribute to the stability of the region.This is a manifestation of the responsible and construction spirit and a practical contribution by countries concerned to peace, stability, cooperation and the rule of the law in the region, including the East Sea.

We believe that all nations must have a common duty and obligation to respect the basic principles of international law,” Peace, stability, cooperation and development in the East Sea is the aspiration and common goal of the countries in the region as well as international community. The respect for international law, including the full and responsible observation of the 1982 United Nations Convention on the Law of the Sea (UNCLOS), is of significant importance to achieving that goal.

Viet Nam welcomes all countries’ common stance on the East Sea that the 1982 UNCLOS is a legal framework that governs all activities at sea. We hope that all countries will make an effort to contribute to maintaining peace, stability, cooperation in the East Sea and resolving disputes through dialogue and other peaceful measures in accordance with international law for the sake of common interests and meeting the aspirations of regional countries and the international community. Viet Nam always contributes positively and responsibly to this process.

Q – Viet Nam has started E-Visa for Pakistanis…Please share details how it is easy for visiting your country ? How many days it will take to get E+Visa?

A – From 15 August 2023, Viet Nam granted e-Visa for the citizens of all countries and territories. Foreigners from any country or territory who plan to enter Viet Nam to travel, conduct market surveys, or explore investment chances, among others, can apply for e-visas by themselves without the need for invitations or guarantees from Vietnamese agencies, organizations, or individuals.

An e-Visa is processed within 03 working days after the Viet Nam Immigration Department receives the completed application and full e-Visa fee. An e-Visa is single entry or multiple entries and valid for a maximum of 90 days.

Q – What commonalities do you count between Your and Our countries? Like living, eating, traditions, history, festivals etc

A – Viet Nam and Pakistan are different regarding the history, religion, culture, and political system. However, there are two common points that can be easily recognized, which are the friendly and hospitable tradition, natures of the peoples in both countries. Those are very important in awareness raising, in people to people contact and connectivity between us.

Besides, the diversity of ethnicities and cultures has brought each country an extremely diverse and rich culinary scene. Similar to the Vietnamese people, Pakistanis also have a great love for their art of cuisine, (tea drinking tradition is outstanding example for sharing commonality hence sharing economic opportunity). Additionally, the big number of population is also a commonality and potential that the two countries have to bring into play in their all-fields cooperation.

We can still go together and far even the commonalities are there or not by applying the absolute advantages and relative advantages mechanisms in our relations. When we believe and stay steadfastly we will share the thing in common of prosperity and sustainable development.

Q – Viet Nam is important member in ASEAN , the fourth largest economic block in the World. How Pakistan can benefit from this position of Viet Nam?

A – Joining ASEAN with the motto “actively, proactively and responsibly”, during the past 28 years, Viet Nam has made many contributions to a unified, united, peaceful, stable and developed ASEAN. Viet Nam, being an important member of ASEAN, would play its full role in paving the way for trade for Pakistan.

Trading with or investing in Viet Nam or any ASEAN member countries will help Pakistan walk in the rest of the members’ market. ASEAN and Pakistan should optimize the potentials in populations, industries, labor forces, natural resources and the scales of economy also.
A FTA between ASEAN and Pakistan should be desired for the effectiveness of economic cooperation boosting, then bring all advantages into play to get the economic connectivity to a higher level.

Q – Pakistan offers transit to Central Asia and beyond. What is the attraction for Viet Nam here?

A – Following the foreign policy orientation of “Viet Nam is a friend, a trusted partner and a responsible member of the international community” Viet Nam has been promoting cooperative relations with all countries and territories including Central Asian nations.

Vietnamese Party, State and people always remember and appreciate the invaluable support that the Central Asian peoples provided for Viet Nam during the past struggles for national independence and the current cause of national construction and development.
Countries in Central Asia and many others globally, are the countries that Viet Nam has the traditional friendship relations with. Viet Nam always attaches importance, treasure the development and reinforcement of ties with traditional friends in Central Asia.

For the shift in our policy focusing on Central Asia, as mentioned above, to be correct, Central Asia has been always an important factor in the nexus of our foreign policy.

The clear evidence for the policy of promoting relations with Central Asian countries could be seen in the process of Viet Nam’s engagement with the Conference on Interaction and Confidence Building Measures in Asia -CICA in which Kazakhstan and other Central Asian countries play a leading role.. Viet Nam participated in the CICA Forum in 1993, one year after its establishment in 1992, as a guest, then as an observer and has become an active and full member of CICA since 2010.

Looking at economic, trade, investment cooperation with Central Asia, Viet Nam became the first FTA partner signing with the EAEU (consists of Russia, Belarus, Kazakhstan, Kyrgyzstan and Armenia).

The Viet Nam – EAEU FTA, which came into force in 2016, has offered a huge opportunity for Viet Nam’s export market, creating a driving force to open the market, and attracting the attention of businesses from both sides, reducing tariff and non-tariff barriers and being a favorable gateway to promote import and export turnover to a level of 10 billion USD between Viet Nam and EAEU countries. Talking about regional connectivity Viet Nam stands ready to serve as a bridge for Central Asia to foster cooperation with other Southeast Asian countries.