Gov't chief grants interview to New Europe

PM Nguyen Tan Dung and EC President José Manuel Barroso

New Europe: Over the past few years, Viet Nam has attracted more and more attention from the EU on a wide range of issues, including investment and trade. How would you describe your country’s relations with the EU especially after your visit here and your contacts with EU officials?

Prime Minister: During this visit to the EU, I had talks with the President of the European Commission Manuel Barroso and meetings with President Herman Van Rompuy of the European Council and President Martin Schulz of the European Parliament. We would like to convey to the EU the message that ‘Viet Nam always attaches importance to and wishes to promote the comprehensive partnership with the EU.’

The EU is a leading important partner of Viet Nam in many areas including political, economic-trade, development cooperation and cooperation to address the global issues. The Viet Nam – EU relations are entering a phase of maturity and ready to take off to a new height with greater substance and efficiency. The official signing of the Partnership and Cooperation Agreement (PCA) and initiation of negotiation of the Free Trade Agreement (FTA) in June 2012 represent a vigorous and substantial growth of the Viet Nam – EU relations.

NE: the Partnership and Cooperation Agreement (PCA) between the EU and Viet Nam was signed in June 2012. This opened the way for a solid and intensive cooperation. What has been the impact of the PCA for Viet Nam?

PM:We highly value the signing of the PCA for a number of reasons:

First, the agreement lays new legal foundation for the expansion of cooperation between Viet Nam and the EU in the spirit of “equal partnership, comprehensive and long-term cooperation for peace and development in the region and the world” in many years to come.

Second, the agreement not only promotes the bilateral relations between Viet Nam and the EU in areas such as development cooperation, economic-trade, education-training, science-technology, agriculture, health and tourism but also covers the cooperation at regional and international forums, cooperation in addressing the global challenges including climate change, environmental issues, natural disasters, energy security, non-proliferation of weapons of mass destruction, terrorism and organised crimes.

In a nutshell, the PCA stands as a vivid testimony to the comprehensive and profound development of the relations between Viet Nam and the EU over nearly 25 years. The signing of the PCA and the conclusion of the EVFTA negotiation will expand the scope and level of Viet Nam-EU cooperation.

NE: President Herman Van Rompuy declared that the EU official development assistance (ODA) for South Asia - under which Viet Nam’s role is important, would be maintained after 2013. What does this mean for the countries in the region?

PM: President Herman Rompuy’s statement takes up the EU’s policy on regional development. Viet Nam, it its capacity as the coordinator of the ASEAN-EU relations, welcomes the EU’s support to the region. We wish that ASEAN and the EU would further strengthen their cooperation for peace and prosperity in our two continents.

Since the EU officially became a dialogue partner of ASEAN 35 years ago, it has always been taking a special interest in ASEAN as well as other countries in the region. This is clearly displayed in the ODA provided to ASEAN and other countries in the region.

ASEAN and the EU have established the Regional EU-ASEAN Dialogue Instrument or READI to promote dialogue in non-commercial areas. From 2007 to 2013, the EU has spent Euro 70 million to support ASEAN-EU cooperation programs. At the 20th ASEAN-EU Ministerial Meeting in Brussels in July, both sides agreed on cooperation for peace, security and regional development. The EU supports ASEAN’s efforts in community building and regional connectivity. The EU has more than doubled its development aid to ASEAN to Euro 170 million in the 2014-2020 period.

NE: ASEAN is also very important to the EU economy. How do you foresee Viet Nam’s role, as an ASEAN member, and as regards ASEAN-EU relations?

PM: Since Viet Nam assumed the role of coordinator of the ASEAN-EU relations in Dec 2012, we have worked very hard to fulfil our role to help taking the ASEAN-EU relations to a new level. This is displayed through the 2 important milestones made under Viet Nam’s coordinating role, namely: (i) the commitment to upgrade the EU-ASEAN relations to strategic partnership and (ii) the coming ASEAN-EU informal Summit in Milan, Italy on Oct 16th. This Summit, which will be held after many years of interruption, is an opportunity for both sides to discuss measures to promote bilateral relations, including major directions and ways to make the relationships more effective as both sides are moving toward strategic partnership.

Viet Nam’s endeavours have formed important basis for further development of the ASEAN-EU Partnership in the future. We will work with other ASEAN members to promote the ASEAN-EU relations in this direction, contributing to peace, stability and prosperity for both continents.

NE: Two weeks ago you declared that Viet Nam needs further ‘equitization’ of the state-owned enterprises. Is this enough to give a boost to the economy? Should we expect future calls for privatisations of state and public companies in order to facilitate foreign investments in Viet Nam?

PM: Restructuring of the SOEs is an especially important part in the overall process of economic restructuring associated with growth model transformation towards enhanced productivity, efficiency and competitiveness in 2013-2020.

In 2011, Viet Nam had 5,655 SOEs and by the end of 2013, the number of 100%-state-invested capital enterprises was down to just 949. As planned, from now to the end of 2015, Viet Nam will continue to equitize an addition of 432 SOEs. Currently, we are actively carrying out restructuring of the SOEs and will only maintain the SOEs in some major sectors. This is also one of the three key contents of the restructuring scheme.

In the coming years, the equitization and reform of the SOEs will be continually carried out to increase transparency and uphold market rules on parallel with promotion of capital markets. In this connection, Viet Nam will facilitate both foreign and domestic investors to buy shares. Furthermore, we will conduct consistent measures to attract foreign investment by creating a level playing field for all economic players and improve legislations on foreign investment.

NE: There is a general atmosphere that relations between Viet Nam and China are calm at the moment and that the strategy of negotiation has prevailed. Is this true and if it is would you say there is a “brotherhood affair” between your two socialist countries?

PM: We steadfastly protect the national sovereignty and legitimate interests of Viet Nam in the East Sea in accordance with international law. Yet, we are always sincere to attach importance to and wish to enhance the friendly neighborliness and comprehensive cooperation with China.

High-level leaders of two countries agreed to resume and strengthen bilateral relations in different areas, control and manage differences, resolve disputes in the East Sea by peaceful means based on international laws. The relationships between Viet Nam and China have been gradually restored. Bilateral contacts and exchanges of delegations are conducted normally while economic and trade ties continue to be maintained and promoted.

NE: Following the partial removal of the US arms embargo, do you see any further development of the relations between Viet Nam and the United States, especially in the area of defence?

PM: The US is a power of the world and Asia Pacific in particular. The US has a key role to play in the region.

Viet Nam welcomes all countries especially the major powers including the US to strengthen cooperation with the Asian Pacific nations. We appreciate the promotion of regional cooperation mechanisms on the basis of respect for national sovereignty and territorial integrity. We also value contributions to maintenance of regional peace, stability and development cooperation in the spirit of equality and mutual benefit. We hope the US will display its role more effectively to contribute to regional peace and prosperity.

At present, Viet Nam is working with the US and other partners to actively accelerate the TPP negotiations. We trust that this agreement will open up new opportunities for both Viet Nam and the US, as well as other member states and the entire region.

NE. Construction plans of big dams in Mekong threaten large parts of the population in Viet Nam and will dramatically affect the agriculture sector. It could pose a risk for Viet Nam’s role as a rice exporter. In addition, the plan to literally ‘cut’ Mekong into sections through the construction of numerous dams is an environmental threat of international proportions. What can ASEAN as a community do to stop the construction? What measures is Viet Nam ready to take considering the situation could become irreversible by the end of the year?

PM: Mekong River is the international river of great significance to the social and economic development, cultural and spiritual life of the people living in riparian states. As a riparian country, Viet Nam always wants countries concerned to collaborate closely to study thoroughly the overall impacts of hydropower projects on the mainstream of Mekong River before making decisions on implementation of the projects.

Riparian states need to work closely together in the fair, reasonable exploitation and use of resources, especially water resources in the Mekong River to protect the ecosystem and contribute to the sustainable development of the entire Mekong basin and generate benefits to all riparian countries and people living in this area.