Socialist Republic of Vietnam

Tokyo, June 3 (VNA) Vietnamese Prime Minister Phan Van Khai delivered his speech entitled Viet Nam acts together and advances together with a dynamic Asia at the opening session of the 10th ''Future of Asia'' International Conference, in Tokyo on Thursday.

The Vietnamese PM said: Given increasing globalisation and international integration, the conference theme ''Laying the Foundation for Asian Integration'' is a timely response to the trend of deepening cooperation among states in the region.

He noted that Asia is growing more and more strongly and has become one of the world's three major economic centres. Countries and territories in East Asia account for 32 percent of population, 21 percent of GDP and 26 percent of trade volume of the world in 2003. The role played by Japan and the Republic of Korea, two nations of higher development levels in the region, the vigorous emerge of China and India, the two most populous countries in the world, and their close linkages with dynamic Southeast Asian countries have created a new driving force for integration in Asia. Economic development in each Asian nation, especially those in East Asia, has become increasingly dependent on regional markets. New requirements for economic, cultural and social development have deepened cooperation among countries that are close to each other geographically and culturally, thus making regional integration become an urgent need.

He went on to say that for regional integration in Asia, the motto "act together and advance together" launched by Prime Minister Koizumi is completely appropriate and meets the interests of all countries in the region. Viet Nam views that regional economic integration is an inevitable trend, which contains both great opportunities and daunting challenges. Given the development gap in the region, integration in Asia should be a process in which states in the region assist and facilitate each other for common development and bridging development gap, thus raising the position and sustainable development momentum for the whole region.

Viet Nam's economic development policy is based on two pillars. First, it is necessary to step up reform with the aim of establishing institutions for socialist-oriented market economy and laying foundation for sustainable development. Second, Viet Nam advocates regional and international integration with a view to mobilising more resources for national development and at the same time contributing to regional and world peace, stability, cooperation and development.

He told the conference that Viet Nam has gained important renewal achievements. Over the past decade, Viet Nam has overcome various challenges to record high growth rates in GDP and export. The number of poor households has been halved and greater successes are expected to be achieved in the coming years. Universalisation of primary education has been achieved and efforts are being made at higher education levels. Socio-political stability has been maintained. Viet Nam has been striving to step up economic growth in close combination with cultural and social development, social progress and justice, and improvement of living conditions, toward the goal of becoming an industrialised nation by 2020. However, Viet Nam's economic and technological development is still at a low level. Living standards remain low. Much needs to be done to improve institutions for a market economy. In this regard, a large-scale programme is being implemented to improve the country's legal system in line with market mechanisms and Viet Nam's commitments for international economic integration. Discriminations among enterprises under different forms of ownership, be they foreign or local investors, will be eliminated. To this end, a competition law will be adopted to minimise and control monopoly and at the same time reduce and eventually remove protectionist barriers, gradually open the market along an appropriate roadmap, and improve the business environment for all economic sectors.

PM Khai said that throughout the Doi Moi process, Viet Nam has been pursuing a policy to actively integrate in the regional and world economy in the spirit "Viet Nam is willing to be a friend and reliable partner of all countries in the international community". Viet Nam has established economic-trade ties with more than 180 states and territories, and is a member of many regional and international organisations, forums, and economic cooperation frameworks.

In Asia, Viet Nam has been actively participating in economic cooperation mechanisms within the frameworks of ASEAN, ASEAN+3, ASEAN with Japan, China, and the Republic of Korea. Viet Nam is also making contribution to cooperation mechanisms between ASEAN and other countries, in the Mekong Sub-region, the Mekong-Ganga Cooperation, the Asian Cooperation and Dialogue Forum, the Baoa Forum, and other inter-continental forums like APEC and ASEM.

PM Khai stressed that cooperation in the Mekong Sub-region is one of Viet Nam's priorities in its regional economic integration. Viet Nam is actively participating in cooperation programmes on the development of the Mekong basin. Under these programmes, the country is stepping up the construction and upgrading of the Sub-region's transport infrastructure in its territory including bridges and roads in corridors of the Mekong river basin, which, when completed in a not far future, will help create a transportation system linking Southeast Asia with Northeast Asia, further facilitating regional trade, investment and tourism and helping narrow the development gap among countries in the region. Viet Nam is also working closely with other countries in the Sub-region in the fields of energy, telecommunication, tourism and human resource development.

With its favourable geographical location as the seaward gateway of the Mekong Sub-region, Viet Nam is trying to promote the linkage between this and other sub-regions. In 2001, at the Ministerial Meeting on Mekong-Ganga Cooperation (MGC) held in Ha Noi, countries in the Mekong Sub-region and India adopted the MGC Ha Noi Plan of Action, the focus of which is cooperation in transportation and communication, education, tourism and human resource development. The MGC mechanism, though still at an initial stage, can serve as a bridge linking the Mekong Sub-region and South Asia in the future.

PM Khai went on to say that as a country whose success in poverty reduction has been highly appreciated by the international community, Viet Nam is willing to share its experience with other nations in this field. Viet Nam has put forward the initiative of organising the Meeting of Governors of Poor States in ASEAN. Within the framework of the Asian Cooperation Dialogue (ACD), Viet Nam is viewed as the "prime mover" in promoting cooperation in poverty alleviation and human resources development. This month, Viet Nam will host an ACD International Conference on poverty reduction to share experience with other countries in the region.

PM Khai added that this October, Viet Nam will host the ASEM 5 Summit, an event marking a new milestone in Asia-Europe cooperation with the admission of a large number of new members. Viet Nam will also be the host of the 14th APEC Summit in 2006.

He stressed that Viet Nam is ready to do whatever it can to be a bridge linking the Mekong Sub-region and the rest of Southeast Asia, between old and new members of ASEAN, between Southeast Asia and Northeast Asia, South Asia, other sub-regions in Asia, as well as with other continents. Besides efforts aimed at expanding regional cooperation, Viet Nam is negotiating and making necessary preparations for an early accession to the WTO, which the country considers as a precondition for deeper and more effective integration.

The Vietnamese PM went on to talk about recent developments in the region since he last attended the forum three years ago.

He noted that never before has the prospect for economic recovery and growth in Asia been so bright like it is today. China continues to achieve high economic growth. The Japanese economy has also seen signs of recovery that promise a positive outlook. Besides the two regional economic locomotives, ASEAN economies are expected to grow by nearly 6 percent this year. The economies of the Republic of Korea, India and many other Asian countries are also moving in the same direction. Trade, investment and tourism linkages among Asian countries are growing more strongly, which help expand markets and promote scientific and technological development, thus laying the foundation for the realization of initiatives on regional economic integration. It is not exaggerate to say that Asia is regaining its momentum as a promised land of strong and dynamic growth.

The PM called attention to the fact that there have never been as many economic integration initiatives in the region as today. With ASEAN and ASEAN+3 as the driving forces, the region has witnessed a series of initiatives aimed at strengthening cooperation and integration between and among regions of Asia such as the Initiative on ASEAN Integration (IAI), the ASEAN Economic Community (AEC), Agreement on ASEAN-Japan Comprehensive Economic Partnership, ASEAN-China Comprehensive Economic Cooperation, ASEAN-India Comprehensive Economic Partnership, and the Initiative on Development of East Asia (IDEA). Besides economic triangles and quadrangles in Asia, the possibilities of establishing ASEAN-China, ASEAN-Japan, ASEAN-Korea, and ASEAN-India FTAs are also promoting closer economic linkages among Asia countries. PM Khai expressed his delight to see such vibrant outlines in the broad pictures of Asian economic integration.

However, he noted that challenges remain ahead. Asia needs to narrow the development gap among countries and among regions in each country; to respond timely to negative changes in the world's markets, especially increasing prices of oil and materials; to make healthier the financial and monetary systems; and to fight environment pollution and degradation. Efforts should be doubled to maintain a peaceful and stable environment in the continent, prevent terrorist acts and settle outstanding disputes through peaceful means. A regional integration process, in which the interests of all nations are ensured and latecomers are assisted to catch up with the overall momentum, will be crucial for nations to overcome challenges and maintain dynamic and sustainable development of the whole continent.

PM Khai said he is optimistic about the future of Asian integration, considering opportunities and challenges. Asian countries have many things in common. Asian people are hardworking and creative. And each Asian country has also accumulated a lot of experience in international integration.

He added that as East Asia is moving toward a free trade agreement for the entire region, East Asian countries should boost their comprehensive cooperation, and work out an action plan to deal with issues of common concerns such as environment, energy, population, and on the other hand, deepen educational and cultural cooperation to maximise the strengths of the whole region and increase mutual understanding, which is an important premise for friendship and cooperation.

The Vietnamese PM especially emphasised the need for further cooperation in education and cultural exchanges.

He pointed out that human resources are the greatest advantage of regional countries, but there remains an imbalance in labour supply and demand in many countries, including Viet Nam. Demand for skilled labour, both technical and managerial, exceeds supply. However, the situation is reverse in the case of unskilled workers. Moreover, unemployment among unskilled labour has emerged as a critical issue. Obviously, there is a need to enhance education and training of skilled labourers in parallel with creating more jobs for unskilled workers. At the moment, labour demand varies from country to country, leading to increasing labour import-export activities in East Asia. To ensure effective and orderly labour flows among regional countries, these countries should cooperate in sharing labour market information and set up joint management mechanisms. Technology transfer from developed economies to developing countries should be stepped up to tap potentials of labour-intensive industries in developing countries, thus helping resolve unemployment.

The Vietnamese PM proposed an establishment of a centre for education, training and employment promotion in East Asia, which can be called East Asia Centre for Human Resources Development and Technology Transfer. Viet Nam is ready to provide location and create favourable conditions for such a centre.

PM Khai called for promotion and diversification of exchanges in fields of culture, arts and literature, and enhancement of mutual understanding on tradition, culture and history of countries in the region. He said young people should be encouraged to study not only history of their own country but also of others, especially of those with cultural similarities, for the young generation will decide the future of Asia. The PM said Governments should give due attention to encouraging and supporting cultural and social organisations as well as history researchers and the people to take initiatives in these fields.

PM Khai expressed his belief that like Viet Nam, all countries in the region highly appreciate the important role played by Japan in building a foundation for Asian integration as well as its enormous contribution to helping other countries in the region, especially the Mekong Sub-region nations, narrow development gaps with others.

He stressed that Japan is a strategic partner of prime importance for Viet Nam. The two countries share the same view on many issues relating to peace, stability, cooperation and development in the region. In 2002, high-level leaders of the two countries agreed to build a framework for a "long term, stable and reliable partnership" between Viet Nam and Japan in the 21st century, marking a substantive change in the bilateral relationship that has been tested over the past 30 years. At present, Japan continues to be the biggest ODA donor and one of the top investment and trading partners of Viet Nam. The Vietnamese Government and people highly appreciate the Japanese government's strong support and Japanese enterprises' active contribution to Viet Nam's socio-economic development.

PM Khai noted that according to a recent survey conducted by the Japan Bank for International Cooperation (JBIC), Viet Nam has been nominated by Japanese businesses as the fourth attractive investment destination in the world. He said that with the signing of an Agreement on Investment Promotion and Protection and the implementation of the joint Viet Nam-Japan Initiative on improving Viet Nam's business environment and competitiveness, the business environment in Viet Nam will be substantially improved in the future. The Vietnamese Government is committed to delivering on commitments made in Viet Nam-Japan Joint Initiative and creating more favourable conditions to elevate Viet Nam - Japan relations to a higher plane.

PM Khai concluded, "Asian countries are growing closer. Nowadays, the Japanese Tea Ceremony, Ikebana Flower Arranging, Kabuki Performing Art, Noh Drama, Caricature - original Japanese cultural characteristics - have become familiar to the people in Viet Nam and many Asian countries. On the other hand, more and more people from Japan and other Asian countries are travelling to Viet Nam to visit Ha Long Bay, Hue Imperial City, Hoi An Ancient Town, Phong Nha Cave - world's natural and cultural heritages in Viet Nam. I am convinced that with optimism and our joint efforts, Asia will become a common home of peace, stability and prosperity for us all.

Last April, Robot Asimo of the Japanese Honda Group came to Viet Nam to attend the 2003 Science-Technology Innovation Award Ceremony. This tiny envoy won the heart of the Vietnamese people. As far as I know, Asimo stands for ''Advanced Step in Innovative Mobility''. This meaning coincides with the message we would like to convey with you that Viet Nam is part of Asia and we are determined to continue with the Doi Moi process and develop Dynamically and Creatively. Viet Nam is always a reliable partner and willing to be a bridge for the integration in the regional and world economy. Viet Nam will act together and advance together with a dynamic Asia."