Key Address by H.E. Mr. Bui Thanh Son, Vice Minister of Foreign Affairs, Vietnam speaking on June 6 at the Fourth EU Asia Top Economist Round Table during Asia Business Week Dublin 2014

1. ASIA BUSINESS WEEK DUBLIN!
Fourth EU Asia Top Economist Round Table!
6 June 2014!
Keynote Address!
H.E. Mr. Bui Thanh Son, !
Deputy Foreign Minister of Viet Nam
Kindly sponsored by: !

2. Remarks by H.E. Mr. Bui Thanh Son, Deputy Foreign Minister of
Viet Nam at the 4th
EU-Asia Top Economist Roundtable on
“Changing Priorities in EU-Asia Business Relations”
(Round Room, the Mansion House, 9.00-9.15 on 6 June 2014)
_________________________
Excellency…..
Ladies and gentlemen,
Let me begin by expressing my gratitude to the Asia Matters, Dublin
City Council and Dublin Institute of Technology for hosting this
meaningful gathering that gives me the opportunity to interact with
leading economists and business executives of Europe and Asia. I
believe that this is an opportunity for us to better understanding of each
other among and also to share our visions on cooperation between the
two continents.
Asia and Europe are the two cradles of age-old civilizations with unique
geographical features and cultural values. Economic and cultural
interactions between our continents dated since long, particularly via the
legendary Silk Road from the second century B.C., and later, via the
voyages of the “age of sail” between the 16th
and 19th
century.
Today, whereas the EU has become a highly integrated economic entity,
Asia is also hosting several major economies, leading the world in terms
of economic growth, and accounting for 65% of global foreign reserve
and 30% of global GDP. The Asian Development Bank (ADB) predicts
that Asia will make up 52% of the global GDP by 2050 if it can sustain
the current rate of growth. The drivers for Asia’s growth come not only

3. from within individual economies but also from the diverse frameworks
of linkage, integration and confidence building that target cooperation,
development and prosperity at sub-regional, regional and inter-regional
levels such as the Greater Mekong Subregion, the Conference on
Interaction and Confidence Building Measures in Asia (CICA), the
Shangri-la Dialogue, the Future of Asia Conference, the Asia-Pacific
Economic Cooperation (APEC), and most prominently the Asia-Europe
Meeting (ASEM).
Since its inception in 1996, ASEM has grown to become the most
extensive dialogue mechanism between Asia and Europe. The dialogue
has contributed substantially to the better understanding and new equal
partnership between the two continents, and concurrently helped
promote the trend of dialogue and linkages for peace and stability in the
world. As an active participant of ASEM since its foundation, Viet Nam
successfully hosted the 5th
ASEM Summit in 2004 and five ASEM
Ministerial meetings. Vietnam also sponsored 18 initiatives of its own
and co-sponsored 22 other initiatives within the framework. Viet Nam is
working closely with other members to prepare for the 10th
Summit in
Milan, Italia later this year.
Ladies and gentlemen,
At today’s roundtable discussion under the theme “Changing Priorities
in EU-Asia Business Relations”, I would like to share with you a few
points on major developments and trends taking place in Asia, which
you may find helpful in designing your business strategies in that
promising market. There are three key features that I wish to draw your
attention to.
First, robust domestic reforms are taking place in Asian countries,
which offer immense opportunities for foreign businesses.

4. Comparative advantages of one country do not last forever in a
constantly changing and highly integrated world. Only those that are
able to sustain existing comparative advantages and generate new ones
can master their own development future.
Far-reaching reforms are taking place in China, Japan, ROK and several
Southeast Asian countries. In Viet Nam, extensive reform has been
aligned with economic restructuring and growth model transformation
toward sustainability. Internal synergy will be closely combined with the
environment outside. The Government of Viet Nam has clearly defined
three short-term targets of restructuring the banking system, public
investment and State-owned enterprises. In the medium and long-term,
Vietnam will implement three strategic breakthroughs, namely
improving market institutions, modernizing infrastructure, and
developing human resources.
It is worth noting the critical role that the business community plays in
the reforms as you are both the beneficiary and driver of the process. By
engaging in the sectoral restructuring in Asia’s developing countries,
foreign investors will introduce advanced technologies and managerial
know-hows, thus enabling the hosts to increase their competitiveness
and participate into the regional and global value chains. The process, in
turn, also awards foreign investors the opportunities to expand markets,
harness local low cost resources and increase linkages with local
partners.
Furthermore, businesses may also join Governments in dialogues and
cooperative mechanisms, especially the public-private partnership
(PPP). The fact that Governments and businesses see each other as
partners for mutual development is in itself very meaningful. The
businesses not only contribute essential supplementary resources for
development, especially in infrastructure, but also assist Governments in

5. performing the role as development shaper, forging transparent
regulatory framework, and properly allocating national resources.
Moreover, response to challenges from climate change, poverty and
diseases also requires concerted efforts from both the public and private
sectors.
Second, there is a tendency of growing economic linkages and free
trade areas, which again promises major trade and investment
opportunities in Asia.
I wish to highlight the three important frameworks that Viet Nam and
many other countries are partaking in, namely the ASEAN Economic
Community (AEC), the next-generation free trade agreements such as
RCEP and TPP, and the EU-Vietnam FTA.
The ASEAN Economic Community (AEC), once completed, will
represent a single market and production base of 600 million people and
US$2.3 trillion in GDP. As a result, businesses can benefit from the
economies of scale and reduction of costs, tariff and non-tariff barriers.
From 31 December 2015 onward, most of the tariff lines among ASEAN
members will enjoy zero duty. Businesses and investors will have equal
opportunity in capitalizing on the common market of the 10 ASEAN
members.
When discussing economic linkages in Asia, one should not fail to
highlight the next-generation free trade agreements, most prominently
the Regional Comprehensive Economic Partnership (RCEP) with China
as a negotiating member, and the Trans-Pacific Partnership (TPP), where
the United States is also a party. These are all promising frameworks for
their vast scope and high level of commitments. The TPP was even
framed the “21st
century trade agreement” as it offers the possibility of

6. expansion beyond the Asia-Pacific, market access in more than 22 areas
and elimination of most of the tariffs.
The EU and Vietnam have completed seven rounds of talks over the
bilateral Free Trade Agreement. Both sides are working hard on the 8th
round to be held in Brussels later this month so that they can announce
the negotiations conclusion by the 10th
ASEM Summit. The EVFTA will
not only generate a more enabling and transparent business climate for
EU enterprises but also testify to Vietnam’s efforts in building a market
economy in conformity with international rules and norms.
While observing its commitments under WTO and eight concluded
FTAs, Vietnam is for the first time engaging in six FTA talks with all
economic powerhouses of the world. Once all the fourteen FTAs are
completed between 2015 and 2020, Vietnam will become an essential
link of a vast economic network of 55 partners, 15 of which are
members of the G-20.
Third, peace and stability are the pre-requisites for sustainable
development of Asian countries, and the business community has
interest in maintaining regional peace and stability.
The rise of Asia in the past decades was aligned with a peaceful and
stable period. For future sustainable development, peace and stability
continue to be a decisive factor. While many Asian countries are facing
challenges from climate change, diseases and other non-traditional
security issues, the region still have several hotspots that risk escalating
into open conflicts. The search for durable solutions to such complex,
multi-dimensional and trans-national issues requires active participation
of all countries and the business community.
I believe that in a globalized and interdependent world, peaceful and
stable environment is the key to promote trade and investment flows;

7. and vice versa, flows of trade, investment and cooperation are essential
to building trust and ensuring stability and sustainable development.
European businesses, with expertise in environment friendly
technologies, managerial know-hows and corporate social
responsibilities can and need to work closely with governments in order
to bridge Asia and Europe, promote sustainability-based approach to
development issues and play the role as an anchor to regional peace and
stability.
For its part, the Vietnamese Government continues to work hard for
regional peace and stability, as well as for domestic reforms to ensure
the most enabling environment for foreign investors. I am glad that
about 750 European enterprises, including Bayer, Bosch, Metro, KPMG,
Holcim, Siemens, among other names are doing well in Vietnam and
have expressed their intention to expand their business in the country.
The Vietnamese Government is committed to every measure necessary
to make sure that you will be safe and secured in Vietnam since we view
foreign investors as an integral part of our economy, and that your
success is also our success.
Ladies and gentlemen,
To conclude, I wish to underline that Asia and Europe could find
opportunities in each other and that the time is ripe for businesses,
investors of both sides to tighten cooperation for peace, stability and
shared prosperity. That is also what makes our gathering today
meaningful.
Finally, may I wish every success to the Conference.
My wishes of health, happiness and success to you all.
Thank you for your kind attention.