The Hanoitimes - Vietnam is fast becoming one of the world`s factories and the base for large multinational companies producing products or services for the world market, according to Prime Minister Nguyen Xuan Phuc.
The Vietnamese government will submit the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) agreement to the National Assembly for ratifiction next month, stated Phuc as reported by the government portal.
In addition to numerous advantages of the CPTPP, Phuc warned more challenges are to come along the way.
Prime Minister Nguyen Xuan Phuc. Source: VGP.
To implement the regional trade deal, Vietnam would need to revise some legal frameworks, ensuring their compatibilities with the agreement. Moreover, Vietnam have to be able to compete with others for market shares of the member countries in the CPTPP, Phuc said at Vietnam Business Summit (VBS) held within the framework of the World Economic Forum on ASEAN in Hanoi on September 13.
"With efforts of Vietnam and other member countries, we believe the CPTPP will be a success," he added.
Speaking at the VBS which drew the participation of more than 1,000 foreign and domestic enterprises, PM Phuc stated Vietnam does not expect to be the best, but wants to make friend with the best in the global economy.
"We have strong desire to become a prosperous country, and are confident of making it happen," Phuc said
According to Phuc, Vietnam has been integrating extensively in the global value chain, but there remains work to do. Statistics showed that only 21% of Vietnamese small and medium enterprises (SMEs) take part in the global value chain, much lower than the average rate of 46% in ASEAN.
Additionally, Vietnam's value addition remains at low level compared to the country's potential, he added. Moreover, Vietnamese enterprises only participate in the lower end of the global value chain, which has low value addition and lacks of sustainability.
Under this circumstance, Vietnam has set objective to claim a higher place in the global value chain and improve the linkage between FDI and domestic enterprises, Phuc informed.
Vietnam is fast becoming one of the world's factories and the base for large multinational companies producing products or services for the world market. Vietnam is one of the most open economies to international trade as trade value represents nearly 200% of the GDP.
The strong growth of Vietnamese privately-run conglomerates shows that the country's business environment is able to nurture large enterprises capable of competing on the global scale.
The PM said other countries are moving forward while Vietnam is growing in a global competitive environment. As such, Vietnam has to step up to narrow the gap with countries in the region.
"Your success is the government's success," he added.
Additionally, Vietnam remains steadfast in pursuing free trade and globalization, which have been key factors for the country's transformation after 30 years of reform, Phuc continued.
The Vietnamese government is committed to being a facilitator, accompanying enterprises and foreign investors in quest for prosperity. Phuc requested foreign investors to be more open and create more opportunities, so that local enterprises can further integrate in the value chain.
In the discussion with enterprises taking part in the VBS, Phuc said the establishment of the National Committee for e-government is aimed towards the development of digital government, digital economy and digital society, creating favorable conditions for the implementation of the fourth industrial revolution in Vietnam.