Vietnam has secured a host of bilateral trade agreements with major economic powers and joined such large regional deals as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP). However, Vietnam’s ambitions go beyond mere economic gains, as evidenced by its early involvement in the discussion of the Indo-Pacific Economic Framework for Prosperity (IPEF) launched by the US in May 2022.
The Vietnamese government continues to be pragmatic when it comes to trade agreements, says Professor Stephen Nagy of International Christian University in Tokyo. As a member to both CPTPP and RCEP, and committed to being part of IPEF, Vietnam is actively exploring all economic opportunities within the region. The country has engaged in numerous agreements that can help deliver greater prosperity to the Vietnamese people.
The concept of “bamboo diplomacy” has been applied in trade relations as well, which means the Vietnamese government is flexible to manage challenges that it faces and remains steadfast in grasping every opportunity within the region.
Vietnam has secured a host of bilateral trade agreements with major economic powers and joined such large regional deals as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP). (Illustrative image. Source: VNA)
Sharing the same view with Nagy, Emeritus Professor at the University of New South Wales Carl Thayer says for decades now, Vietnam has remained committed to proactive international integration, adopting a pragmatic approach in its external relations. The country has cultivated a cadre of government officials and economists who possess a deep understanding of the global trade system and its evolving dynamics.
Vietnam’s long-standing membership in the Asia-Pacific Economic Cooperation (APEC) has further bolstered its role in the region, Thayer says, adding that Vietnam has been among few members to successfully host the APEC Year twice in 2006 and 2017.
Vietnam’s proactive engagement in multilateral trade frameworks, including IPEF, has helped to strengthen its autonomy and independence. It also demonstrates Vietnam’s constructive role and prestige within the region’s economic landscape.
IPEF should be based on open, inclusive, transparent principles
Vietnam believes that the Indo-Pacific Economic Framework for Prosperity (IPEF) should be based on open, inclusive and transparent principles in line with international law, while ensuring ASEAN’s central role and supplementing existing economic links, Foreign Ministry spokesperson Le Thi Thu Hang made the statement while clarifying Vietnam’s stance in joining the discussion process of IPEF during the ministry’s regular press conference in Hanoi after Prime Minister Pham Minh Chinh attended the hybrid launch ceremony of IPEF.
Pursuing the policy on building an independent and self-reliant economy in association with proactive international integration with extensive, substantive and effective economic integration, Vietnam has participated in a number of initiatives on international economic cooperation, thus making the most of domestic and foreign resources for national construction and development.
An effective IPEF means prosperity and benefits for Vietnamese people
The discussion of the Indo-Pacific Economic Framework for Prosperity (IPEF) should aim at a framework that brings practical benefits to the people.
At the recent IPEF meeting on the occasion of the APEC 2023 in the US, Vietnam proposed three orientations for the effective implementation of IPEF.
First, the IPEF needs to be an open, inclusive, non-discriminatory cooperation mechanism, one that would support the rules-based multilateral trading system, welcome the participation of countries within and outside the region, and complement and supplement other regional economic connectivity initiatives.
Second, cooperation within the IPEF should meet the development needs of each party, balance the interests of all parties, respect and take into account the differences and particular characteristics of each country, and focus on technical support and capacity building.
Third, the IPEF should encourage new investment in building infrastructure, transition to clean energy, and high-tech industrial production in the region.
Vietnam’s three orientations demonstrate the country’s consistent policy of pursuing independence and self-reliance to ensure the nation’s best interests. Vietnam values cooperation that is mutually beneficial and respects the unique characteristics of each country.
Vietnam has been a very good partner of the Indo-Pacific Economic Framework for Prosperity (IPEF). We’re confident that the efforts of the IPEF partners, whether in promoting clean energy transition, enhancing supply chain resilience, or safeguarding labor rights, will be critical in fostering prosperity in the region and among the participating countries.
As the IPEF continues to evolve, presenting both opportunities and challenges, it’s high time for Vietnam to study the new mechanism thoroughly, consult and share information with relevant countries to facilitate the negotiation process to speed up the formation of a framework that will bring practical benefits to its people, and contribute to peace, stability and prosperity in the region and the world./.
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