The year 2020 is probably an unforgettable time for every country in the world as they have to struggle with terrible impacts caused by the Covid-19 pandemic as well as the complicated political and commercial relations in the world.
2020 is also the year when Vietnam holds great roles in the international arena.
Mr. Kyle Springer, senior economic analyst at the Perth USAsia Research Center, University of Western Australia, said that as the leader of ASEAN, Vietnam has succeeded in bringing this regional organization to Regional Comprehensive Economic Partnership (RCEP) Agreement with its partners, except India, which has withdrawn from the agreement due to concerns about the rising trade deficit.
Contributing 29% to the global GDP, RCEP promises to become a trading platform that strongly promotes regional value chains, as well as removes legal barriers for investment activities. This will be the most important step forward for international trade since the introduction of the World Trade Organization (WTO).
"RCEP is the foundation to promote the development of the Vietnamese economy by improving the ability to attract investment capital and supporting trade activities," said Mr. Spinger.
RCEP is not the only achievement that Vietnam has made in terms of economic integration in 2020. Last August, the Vietnam - EU Free Trade Agreement (EVFTA) came into effect and has created positive results after only a few months of implementation. In addition, Vietnam is also the only country in the ASEAN region to achieve positive growth of 2-3% in 2020.
According to the statistics for the first 3 quarters of the year, Vietnam’s economy could not achieve high growth this year but still maintained stable, with the inflation rate below 4%. Foreign investment capital flow has also increased and there was a trade surplus after the EVFTA came into effect.
Along with that, difficulties that the economy is facing have also been gradually overcome. Specifically, according to the Prime Minister's report on the implementation of the socio-economic development plans 2020, the private economic sector is thriving, and some large economic groups with high levels of competitiveness have been established.
The year 2020 also sees a wave of FDI flow into the clean energy sector, most notable of which is the USD 4 billion project of Singapore's Bac Lieu Liquefied Natural Gas Power Plant. In addition, there are many similar large projects that will be implemented in the coming time. This will be an important driving force to help Vietnam gradually transform its growth model towards sustainability, reduce natural capital intensity, and reduce emissions into the environment.
Commenting on the long-term future, Mr. Spinger believes that in 2030, Vietnam will be one of the largest economies in the world. However, to achieve this, the Vietnamese government needs to actively reform the economy, and maintain deep international integration.
2030 is also the time limit for many goals in Vietnam's development strategy, such as becoming an industrial country, having the third highest industrial value in ASEAN, and completing 17 goals set out under the 2030 Agenda for Sustainable Development of the United Nations.