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APEC 2017 in ProgrEss
APEC Viet Nam 2017: Responsibility, Mobility, Sustainability, Innovation
What are the economic impacts of the Re- public of Korea (RoK)-Vietnam strategic partnership and APEC membership?
Since the RoK and Vietnam established dip- lomatic relations in 1992, bilateral co-operation has made remarkable achievements. In less than a span of 20 years, the relationship was first up- graded to a “Comprehensive Co-operative Part- nership” in 2001 and then to a “Strategic Co- operative Partnership” in 2009. Today, bilateral exchanges are taking place across all sectors, from economic and political to socio-cultural and aca- demic partnerships.
The most impressive records were set in the economic sector. Bilateral trade volume in the past quarter-century increased 90-fold, from a mere $500 million in 1992 to over $45 billion in 2016. And with the Korea-Vietnam Free Trade Agreement in effect since December 2015, to- tal trade volume and investment between our two countries is expected to grow even further in the next 25 years. Today, our two countries have become indispensable partners to each other, not only in terms of our respective na- tional economic growth and development but also for regional and global prosperity.
Indeed, as Vietnam’s top investor, and as the third- and fourth-largest trading part- ners to each other, the economic partnership between the RoK and Vietnam constitutes an important and integral part of our common ef-
forts to realise the Bogor Goals under APEC. In this regard, the 2017 APEC Economic Leaders’
Meeting in the central city of Danang will be a great opportunity for our two countries to build an even stronger and deeper partnership as we together work toward promoting inclusive growth in the Asia-Pacific region.
Since its inception in 1989, APEC has had a pri- mary goal of supporting sustainable econom- ic growth and prosperity in the Asia-Pacific region. In your opinion, what opportunities and challenges does APEC currently have?
For the past few decades, the Asia-Pacific region has served as the global growth engine.
One of the main reasons behind the region’s impressive growth rates can be attributed to its vigorous pursuit of trade and investment liber- alisation under APEC. Indeed, numbers show that APEC member economies’ average tariff rate was cut down one-third, from 17 per cent in 1989 to 5.6 per cent in 2015. Trade volume and per capita income also increased by 6.7 times and 76 per cent, respectively, during the same period.
However, today the region is faced with revived challenges of trade protectionism and anti-globalisation. Multilateral trade negotia- tions and economic integration efforts through regional trade agreements and free trade agreements are at a stalemate. What is worse, a growing number of countries are experiencing
increasing inequality in income and wealth, due to uneven distribution of trade benefits.
Fortunately, to address these challenges, Vietnam, as host of this year’s APEC, has placed
“promoting inclusive growth in the APEC re- gion” high on the agenda of this year’s meet- ing. And sharing the very same concern, the RoK’s new government is also exerting every effort to achieve inclusive growth. The Moon Jae-in Administration is calling for a paradigm shift toward a “human-centred economy” so as to overcome the problems of low growth and economic polarisation.
While the domestic policy efforts of in- dividual member economies is as important, creating a synergy effect through shared efforts of all APEC member economies is pivotal in ad- dressing the challenges of our time. Consider- ing that APEC’s true strength lies in the forum’s non-binding, voluntary nature and its active interaction with the private sector, I am certain that the voluntary and open joint efforts by APEC members will contribute to promoting in- clusive growth and to achieving the UN Sustain- able Development Goals. As such, APEC, today, continues to have significance and relevance as the “premier forum for facilitating economic growth, co-operation, trade, and investment in the Asia-Pacific region”.
How do you feel about the preparation that went into and the prospects for APEC 2017?
As a strong supporter and proponent of free and open trade and investment and re- gional economic integration, Vietnam has been playing an increasingly important role within APEC since it joined the group in 1998. Viet- nam is one of the few member economies en- trusted to host the APEC summit for the second time within a decade, and looking back on the achievements of the 2006 APEC summit in Ha- noi, there is no doubt that the 2017 APEC sum- mit in Danang will be yet another great success.
Indeed, much preparation and conversa- tion have already taken place throughout this year in the High-Level Policy Dialogues, Senior Officials’ Meetings, and Ministerial Meetings, which will lead to substantial discussions this November. Moreover, in view of the fact that the central city of Danang is one of the most at- tractive tourism destinations in ASEAN, I believe APEC 2017 will also be a good opportunity to promote tourism and cultural exchange among APEC members.
