1 APEC 2006 IN VIETNAM Phan Thanh Ha Nguyen Hoang Thuy Central Institute for Ministry of Trade Economic Management CHIBA UNIVERSITY, JAPAN MARCH 2006

2 Introduction 2006 － a special year: The five-year plan AFTA To join WTO APEC 2006 A honor and a challenge

3 “ Toward a Dynamic Community for Sustainable Development and Prosperity” To go far towards the Bogor goals To show Vietnam as an open and dynamic economy, active in integrating with the world, promoting trade, investment and tourism

4 Priorities of the APEC Promote APEC Cooperation to Enhance Trade and Investment - Support the WTO/DDA -Implement the Busan Roadmap 2.Enhance Competitiveness of Small and Medium Enterprises 3. Promote Integration Capacity through Human Resources Development, IT cooperation, and Partnership for Development 4. Enhance Human Security: Counter Terrorism, Health Security, Disaster Preparedness and Energy Security 5. Promote anti-corruption 6. Connect APEC Economies through Tourism and Cultural exchange 7. Reform APEC

5 1.Support WTO negotiations 1.1.DDA The highest priority for APEC 2006 Key topics ： non-agricultural market access, trade facilitation, services, trade and development, dispute settlement and technology transfer Strong and credible statement at ＭＲＴ in mid of May 1.2.WTO accession of Russia and Viet Nam

6 The Vietnam case: discrepancies SOEs, industrial subsidies, transparency and domestic taxation SOEs ： The government important role is a common characteristic of the Asian economies ， The common enterprise law in 2005 creates a level playing field, prevents from unreasonable intervention in business Preferential credits based on banks’ evaluation of risks. Loans to private firms ： more costly and riskier

7 The Vietnam case: discrepancies (cont.) Industrial subsidies ： to abolish at the accession The reasons to maintain subsidies for the projects which were granted before accession. Insignificant To keep the business environment stable ， not adversely affect firms. To respect government commitments,

8 The Vietnam case: discrepancies (cont.) Transparency ： To open a government’s website Draft legal documents to be published for comment All ministries and many provinces have websites Preparation of the government website http// Special consumption tax Concern about potential discrimination against spirits Not intended discrimination

9 2.FTAs/RTAs The model chapters of FTA/RTA by 2008 ( Non- binding, non-mandatory) Comprehensive and consistent with WTO Present a list of possible chapters at SOM II 3. Implementation of the Busan Roadmap An action plan is to be worked out Possibly cover all or selected elements of the Roadmap and multi-year work program CTI to incorporate relevant elements of the Roadmap into its work program in cooperation with its sub-fora and report progress at SOMII.

10 4.APEC Reform A Friend of the Chair for Reform was established –Australia, China, Japan, Peru, Singapore, the United States, and Viet Nam, –the Executive Director and Deputy Executive Director of the APEC Secretariat, and the BMC Chair, Three dimensions of APEC reform in 2006: –Improving Operational Efficiency; –Promoting Operational Linkage; –Enhancing Operational Dynamism Followed up reform measures approved in 2005, i.e. financial sustainability, continuous reform and more coordination. Some suggestions for operational reforms: - Strengthen the informal atmosphere of APEC Senior Officials meetings, reduce bureaucratic approach and duplicate works of WGs - APEC Secretariat ： enhance undertaking research functions - Greater use of information technology.

11 5.Tourism and Cultural Exchange Vietnam’s proposal: -There is a need to synergy tourism and cultural exchanges -Measures to promote APEC tourism cooperation:  annual APEC Tourism Fair; APEC Tourism and Investment Mart.  Facilitating tourism movement by reducing unnecessary procedures, facilitating connecting tours direct flights between the world cultural heritages  The cultural exchange activities such as: the second APEC Film Festival and APEC Photo Exhibition. - Elaboration on the above issues will be submitted to SOM II - A statement on promoting tourism cooperation is to be issued at the 4th APEC Tourism Ministerial Meeting in October 2006

12 6.Research on Socio-Economic Disparity To deepen the understanding of socio- economic disparities To ensure that all people to share the benefits generated by trade liberalization and economic growth An international symposium between SOM II and SOM III in 2006 Not detract from the EC’s structural reform agenda. The work may extend beyond 2006

13 6.Private Sector Development with Focus on SMEs Examine the link between the ease of doing business and productivity/growth; Present knowledge on the ease of doing business; Share some best practices and examples; Identify priority areas for possible government action/attention and Discuss options on the ease of doing business 、 via capacity building projects and other means

14 Concluding remarks A lot of work to do The needs of Vietnam as the latest APEC member and the host of APEC 2006 for APEC members’ and APEC secretariat’s assistance in technical, financial and organizational aspects. Contribution of this symposium - for Vietnam as a host and APEC as a whole