International economic integration is the road Viet Nam has to take in to renew growth model and restructure its economy towards raising the added value, quality and effectiveness of the economic growth.

International economic integration is the road Viet Nam has to take in to renew growth model and restructure its economy towards raising the added value, quality and effectiveness of the economic growth.

The PM made that statement in a document in which he answered the question raised by National Assembly delegate Nguyen Thi Kim Thuy about the Government’s preparations to limit risks when foreign commodities, businesses, and laborers enter Viet Nam freely following the country's joining of a number of multi-lateral and bilateral Free Trade Agreements.

Must-go road

Viet Nam has actively stepped up its international economic integration multilaterally, bilaterally and regionally.

In 2015, there are remarkable events for the country, including the establishment of the ASEAN Economic Community, the signing of the Free Trade Agreements with the Eurasian Economic Union and the Republic of Korea and the terminal negotiations of the Trans-Pacific Partnership and the Free Trade Agreement with the EU.

It is obvious that international and regional economic integration always bring both benefits and challenges. 

Viet Nam has reduced the import tariff since 1996 after joining the ASEAN Common Effective Preferential Tariff (CEPT) Scheme for the ASEAN Free Trade Area.

In the negotiation process, Viet Nam has tried to set up a long-term tariff-cut roadmap, which lasts till 2018, while other nations in the ASEAN-6 basically completed the roadmap in 2010. The reason is Viet Nam has prepared the time for its businesses to cope with challenges.

Integration has surely prompted competitiveness, which will, on the one hand, affect negatively weak enterprises, but, on the other hand, will encourage competent ones to renew and develop as well as create more choices for consumers.

The overall and resonant impacts of the FTAs are active, which help Viet Nam establish and consolidate the balance in its relations with other partners, expand markets for exports and deal with issues related to jobs and laborers as well as create forces for institutional reform, complete the legal system and promote foreign investment in Viet Nam.

The Government has negotiated and committed to the integration process with suitable transition roadmap. Communications work has been accelerated to help all grasp fully benefits brought by integration.

The Government has also boosted the exports of the country's advantageous commodities, actively launched measures to prevent price-dumping and supported businesses through activities such as economic cooperation channels, trade and investment promotion.  

Labor quality improved

Regarding a free flow of foreign laborers into Viet Nam, the PM said in the document that only those with professional competence, short-term and temporary laborers are allowed to work in Viet Nam following the commitments the nation has made to the World Trade Organization since 2007.

To ensure that foreign laborers follow international commitments when working in Viet Nam while dealing with unemployment in the country, the Government has enhanced the implementation of measures including the completion of legal documents of labor and employment.

In addition, it has taken measures to improve the quality of human resources by training technical skills, foreign languages, working skills, discipline, and working behaviors as well as increase the competence for vocational training and employment service centers.

These works will enable the country to take advantage of its abundant and young workforce when it participates in the ASEAN Economic Community.