INDUSTRIAL COMPETITIVENESS IN VIETNAM
INDUSTRIAL COMPETITIVENESS IN VIETNAM
Erle Frayne D. Argonza
Industrialization is the crux of Vietnam’s development agenda. This is the signal being beaconed by the first industrial competitiveness report of the same country.
Among the high-growth economies of East Asia, Vietnam’s growth has been truly remarkable. Vietnam’s policy makers have hinged their growth goals on physical economy frameworks as a way to growth and income redistribution, rendering it as a model for social markets that began their development trajectories from old mode socialism.
There is no reason that Cambodia and Laos shouldn’t follow the footsteps of Vietnam. May I add Nepal which, for some time after the overthrow of the ancien regime of monarchy there, has been governed by popularly elected socialist parties.
Below is an update report on the report from the UNIDO media center.
[Philippines, 29 February 2012]
Viet Nam’s first Industrial Competitiveness Report launched
HANOI, 13 December 2011 – The United Nations Industrial Development Organization (UNIDO) and the Ministry of Industry and Trade today launched the 2011 Viet Nam Industrial Competitiveness Report.
The report will contribute to the existing policy debate in Viet Nam by providing a conceptual framework for understanding the drivers of industrial competitiveness, positioning Vietnamese industries in the international context, identifying industrial bottlenecks that can be addressed by policy, and presenting specific recommendations for the leaders of the country.
The report makes the case that industrialization is at the core of Viet Nam’s economic growth. This is in line with empirical and historical evidence which shows that a fast-growing economy needs a vibrant industrial sector. Boosting the manufacturing sector is likely to be even more important in the future if Viet Nam is to create more wealth and employment.
The report argues that structural change towards certain strategic technology intensive sectors can speed up the industrialization process, thus providing the right conditions for sustained growth.
The Deputy Minister of Industry and Trade, Le Duong Quang, said that “the 2011 Viet Nam Industrial Competitiveness Report will be deemed a useful document which supports policymakers in the formulation of industrial and trade policies that meet the requirements of the realities of the new stage in Viet Nam’s industrial development”.
He emphasized two major issues of concern highlighted in the report: the evaluation of the role of trade liberalization in recent years for economic and productive restructuring, and the need for a re-formulation of industrial policy and strategies to take account of national priorities, as well as of global threats and opportunities. The release of the report is timely as it raises important policy implications, said Le Duong Quang.
UNIDO Managing Director, Wilfried Luetkenhorst, pointed out that “industrial competitiveness is not – or at least not entirely – determined solely by a country’s factor endowment. Competitive advantages can be created”. He added that the report advocated this idea by arguing that Viet Nam needed to move up into technologically more sophisticated and higher value added activities.
The 2011 Viet Nam Industrial Competitiveness Report is a collaborative product between the Ministry of Industry and Trade and UNIDO in the context of the One UN funded programme “Building National Capacity in Industrial Diagnosis and Trade Competitiveness Analysis”.
The report was prepared by UNIDO staff and the Industrial Competitiveness Group, an inter-ministerial working group consisting of young professionals trained by UNIDO. It also benefited from the inputs and supervision of an Advisory Board composed of high-level senior government officials and advisors.
For further information, please contact:
Viet Nam Country Office
Tel: +844-38 22 44 90