Economic Diplomacy: The New Engine for Growth

23 December, 2024

This was emphasized by Prime Minister Pham Minh Chinh at the Conference with Ambassadors and Heads of Vietnamese Representative Agencies Abroad, summarizing economic diplomacy in 2024 and deploying key tasks for 2025, on the evening of December 20.

Conference Overview. Photo: VGP

According to the Prime Minister, economic diplomacy has truly become a crucial aspect of all foreign affairs activities, especially high-level diplomacy. There has been a positive shift in thinking and approach, leading to more proactive, substantial, and effective actions. It has also contributed efficiently to implementing strategic breakthroughs, with economic diplomacy being institutionalized and systematically organized, gaining consensus and involvement from the entire political system, along with close coordination between ministries, sectors, and localities.

The Prime Minister affirmed that economic diplomacy is becoming more substantial and well-organized, with three clear aspects: clear results, clear products, and clear contributions to the country’s socio-economic development.

Some specific and quantifiable outcomes include attracting chip manufacturing giants like NVIDIA to Vietnam, expanding export markets for agricultural products, achieving record-high agricultural export turnover, significantly developing tourism, and boosting the aviation industry. As a result, there has been an increase in trust from partners, and the momentum from high-level visits has been effectively utilized by ministries, sectors, and businesses. New markets such as the Middle East, Halal market, and South America have also been tapped.

Prime Minister Pham Minh Chinh delivering the concluding remarks at the Conference. Photo: VGP

Looking ahead, the Prime Minister stated that the international situation will become increasingly complex, with opportunities and challenges intertwining, and challenges remaining prominent. Therefore, high determination, great efforts, and resolute actions are necessary, focusing on creating breakthroughs in economic diplomacy.

The year 2025 is crucial for accelerating and completing the development goals set for the 2021-2025 period. It also involves actively reorganizing agencies and preparing for significant national anniversaries, as well as thoroughly preparing for the Party Congresses at all levels, leading up to the fourteenth National Party Congress, which will usher in a new era of national advancement.

To achieve the goal of becoming a high-middle-income country by 2030 and a high-income country by 2045, Vietnam’s economic growth rate must reach 8% in 2025 and double digits in the following years.

The Prime Minister instructed that economic diplomacy should contribute more to realizing these goals. Ministries, sectors, localities, and agencies must all exert greater efforts, demonstrating even higher determination, putting in more effort, and taking more resolute actions. “Once the Party has directed, the Government has agreed, the National Assembly has consented, the people have supported, and the country has expected, we should only discuss how to do it, not whether to do it,” he emphasized.

Moving forward, economic diplomacy should focus on promoting the signing of legal frameworks such as FTAs, IPAs, and CEPAs. It is also essential to identify distinct potentials, outstanding opportunities, and competitive advantages for Vietnam and its partners to determine areas of cooperation, complementarity, and competition. Additionally, there should be an emphasis on connecting Vietnamese businesses with international counterparts.

Clarifying that economic diplomacy is a new and important driving force, the Prime Minister urged the renewal of traditional growth drivers, including exports, investment, and consumption. He also highlighted the need to promote new growth drivers, such as green economy, digital economy, circular economy, knowledge-based economy, sharing economy, and night-time economy. Building brands for Vietnamese products and services, conducting substantive and effective trade and investment promotions, developing sustainable competitive markets, and diversifying products, markets, and supply chains are also crucial aspects.

To achieve these goals, it is necessary to strengthen diplomacy in various fields, continuing to promote technology diplomacy, tea diplomacy, shrimp diplomacy, and more. Particular emphasis should be placed on expanding technology cooperation, especially in technology transfer for semi-conductor chips and artificial intelligence. Cooperation in space exploration, ocean space, and underground space should also be pursued. At the same time, the Prime Minister noted the importance of continuing to reform visa policies to attract more investment and tourism.

The Prime Minister assigned specific tasks to the Ambassadors and Heads of Vietnamese Representative Agencies Abroad. These include urging the United States to remove Vietnam from the group of countries with export restrictions on technology and soon recognize Vietnam as a market economy. Other tasks involve promoting cooperation with China in developing border gate economics and connecting transportation, especially rail links, and collaborating with Middle Eastern countries to establish an International Financial Center in Ho Chi Minh City and remove the “yellow card” for seafood exports issued by the EC.

Tung Phong