Economic Diplomacy – Turning agreements into practical and effective economic cooperation programs and projects

An important pillar in the country's diplomacy

Economic diplomacy has taken the lead in mobilizing external resources, making an important contribution to the implementation of socio-economic development duty, especially expanding and improving economic efficiency for the country.

Viet Nam's international economic integration has become more proactive, and effective. The network of Free Trade Agreements (FTA) is expanded along with effective implementation of 16 signed FTAs. Viet Nam also signed over 70 cooperation documents at ministerial level and nearly 100 cooperative agreements at local level, and hundreds of agreements between businesses. As a result, economic diplomacy has contributed to promoting economic growth, exports, and FDI attraction.

The country took proactive, creative and decisive steps towards new economic links, including the Just Energy Transition Partnership (JETP), which was agreed between Viet Nam and the International Partners Group (IPG) in December 2022 at the EU-ASEAN summit in Brussels and outlined in the JETP Political Declaration, is a crucial step towards fulfilling national climate targets, and signed, as one of the framework's 14 founding members, the Indo-Pacific Economic Framework for Prosperity (IPEF) Supply Chain Agreement and announced the substantial conclusion of the negotiations for the IPEF Clean Economy Agreement, IPEF Fair Economy Agreement, and the Agreement on the IPEF.

Economic diplomacy has made an important contribution to promoting economic growth, including the import-export in 2023 reached over US$680 billion, FDI reached US US$36.6 billion, an increase of 32.8 percent, etc,.[1]

An economic diplomacy which focuses on promoting digital transformation, green and circular economy

During the 32^nd Diplomatic Conference in December 2023, Prime Minister Pham Minh Chinh emphasizes that the economy was an important pillar in diplomatic activities and expressed his wish that economic diplomacy to promoting digital transformation, green and circular economy. The words of the Prime Minister came in the context of Viet Nam's digital economy is expected to gain robust growth and reach an estimated US$45 billion by 2025, and Resolution 55-NQ/TW on orientations for the national energy development strategy by 2030, with a vision to 2045, issued by the Politburo on February 11^th, 2020, affirms the priority for renewable energy and waste-to-energy plants to protect the environment and develop the circular economy.

Internationally, The Vietnamese government has committed to achieving net-zero emissions by 2050 at COP-26. To fulfill this commitment, the country needs a transition of its economy from linear to circular through drawing investment, mobilizing resources and establishing regulations related to sustainable growth models, promote recycling, and adopt resource-efficient practices.

Globally, the shift to green economic development is an inevitable trend. And the goal that Viet Nam is aiming for is to implement development orientation in line with the Resolution of the 13^th Party Congress, the 5-year socio-economic development plan 2021-2025 and the Socio-Economic Development Strategy 2021-2030, while creating opportunities for Viet Nam to become a pioneer country in the region in green growth, green recovery, and catch up with new development trends of the world.

The political will for such focuses has been there, but economic diplomacy can work out to facilitate and turn it into practical and effective activities? It may depend not only in Viet Nam' diplomatic service but also in its foreign partners, who trust in the country as a safe place for investing in such aspects.

[Those who working in economic diplomacy will continue to make use of the country's new position and strength, and materialize the newly upgraded relationships and turn them into practical and effective economic cooperation programs and projects with the aim of expanding markets and accessing new capital sources for infrastructure development, high technology, digital transformation, green growth, tourism, and skilled labor exports.]

Bui Thanh Son – Foreign Minister

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Viet Nam is now the 11th largest economy in Asia and in the group of the 40 largest economies in the world.

[1] Vietnam"s diplomacy in 2023: Outstanding highlights in the country"s achievements (baoquocte.vn)