East Sea crisis calls for new economic route

Friday, Jul 04, 2014 09:00

"Export value from Viet Nam to China had risen from US$1.5 billion in 2000 to $13.3 billion in 2013, Lan said."— Photo thanhnien

HA NOI (Biz hub) — Present tensions in the East Sea had created opportunities for Viet Nam to adjust its economic policies with China to avoid becoming too dependent.

This is the view of Vo Tri Thanh, Deputy Director of Viet Nam's Central Institute for Economic Management (CIEM) and two other speakers at a seminar on Economic Autonomy in an Interdependent World organised by the Viet Nam Chamber of Commerce and Industry yesterday in Ha Noi.

He said that Viet Nam shared a great economic relationship with China, including high imports and exports, but integration into the world market had its risks.

Therefore, the present situation had created opportunities for Viet Nam to review its economic policies with China and adjust policies to avoid dependence on its neighbour in terms of economic relations.

To end any dependence on China and avoiding risks involved in doing business with Chinese enterprises, Viet Nam should continue economic restructuring and integration.

Thanh said Viet Nam had promoted the restructuring of its national economy and integrated it further into the global economy and the conflict on the East Sea between Viet Nam and China was a chance for Viet Nam to speed up its economic restructuring.

Viet Nam should actively seek supplies from other countries and new export markets, Thanh said, adding that Viet Nam should seek actively international commercial agreements with other nations.

Economic expert Pham Chi Lan said Viet Nam depended a great deal on imports and exports with China in some sectors.

Export value from Viet Nam to China had risen from US$1.5 billion in 2000 to $13.3 billion in 2013, Lan said.

At the same time, the value of imports from China had grown from $1.4 billion 2000 to $37 billion in 2013.

Lan said Viet Nam had a trade surplus of $135 million with China in 2000, but had a trade deficit of $23.7 billion in 2013.

He said the change was due to high imports of equipment and material for production into Viet Nam. Seventy per cent of the imports from China were industrial support products, machinery, seeds, fertilisers and animal feed.

Economic expert Le Dang Doanh said integration with the rest of the world had been an advantage for Viet Nam in protecting its national sovereignty. Viet Nam had consolidated its internal force and developed its economy thanks to that integration.

Doanh said Viet Nam had economic relations with the second largest economy in the world and continued those relations.

He added that Viet Nam should create economic partnerships with other nations to avoid depending on one economy. — VNS

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