CHIBA UNIVERSITY, JAPAN 14-15 MARCH 2006

1. APEC 2006 IN VIETNAMPhan Thanh Ha Nguyen Hoang Thuy Central Institute for Ministry of Trade Economic Management CHIBA UNIVERSITY, JAPAN 14-15 MARCH 2006

2. Introduction 2006 － a special year: • The five-year plan 2006-2010 • AFTA • To join WTO • APEC 2006 A honor anda challenge

3. “Toward a Dynamic Community for Sustainable Development and Prosperity” • To go far towards the Bogor goals • To show Vietnam as an open and dynamic economy, active in integrating with the world, promoting trade, investment and tourism

4. Priorities of the APEC 2006 • Promote APEC Cooperation to Enhance Trade and Investment - Support the WTO/DDA • Implement the Busan Roadmap • Enhance Competitiveness of Small and Medium Enterprises 3. Promote Integration Capacity through Human Resources Development, IT cooperation, and Partnership for Development 4. Enhance Human Security: Counter Terrorism, Health Security, Disaster Preparedness and Energy Security 5. Promote anti-corruption 6. Connect APEC Economies through Tourism and Cultural exchange 7. Reform APEC

5. 1.Support WTO negotiations 1.1.DDA • The highest priority for APEC 2006 • Key topics： non-agricultural market access, trade facilitation, services, trade and development, dispute settlement and technology transfer • Strong and credible statement at ＭＲＴ　in mid of May 1.2.WTO accession of Russia and Viet Nam

6. The Vietnam case: discrepancies SOEs, industrial subsidies, transparency and domestic taxation SOEs： • The government important role is a common characteristic of the Asian economies， • The common enterprise lawin 2005 creates a level playing field, prevents from unreasonable intervention in business • Preferential creditsbased on banks’ evaluation of risks. • Loans to private firms： more costly and riskier

7. The Vietnam case: discrepancies(cont.) Industrial subsidies： to abolish at the accession The reasons to maintain subsidies for the projects which were granted before accession. • Insignificant • To keep the business environment stable，not adversely affect firms. • To respect government commitments,

8. The Vietnam case: discrepancies(cont.) Transparency： • To open a government’s website • Draft legal documentsto be published for comment • All ministries and many provinces have websites • Preparation of the government website • http//www.apec2006.vn Special consumption tax • Concern about potential discrimination against spirits • Not intended discrimination

9. 2.FTAs/RTAs • The model chapters of FTA/RTA by 2008 ( Non-binding, non-mandatory) • Comprehensive and consistent with WTO • Present a list of possible chapters at SOM II 3. Implementation of the Busan Roadmap • An action plan is to be worked out • Possibly cover all or selected elements of the Roadmap and multi-year work program • CTI to incorporate relevant elements of the Roadmap into its work program in cooperation with its sub-fora and report progress at SOMII.

10. 4.APEC Reform • A Friend of the Chair for Reform was established • Australia, China, Japan, Peru, Singapore, the United States, and Viet Nam, • the Executive Director and Deputy Executive Director of the APEC Secretariat, and the BMC Chair, • Three dimensions of APEC reform in 2006: • Improving Operational Efficiency; • Promoting Operational Linkage; • Enhancing Operational Dynamism • Followed up reform measures approved in 2005, i.e. financial sustainability, continuous reform and more coordination. • Some suggestions for operational reforms: - Strengthen the informal atmosphere of APEC Senior Officials meetings, reduce bureaucratic approach and duplicate works of WGs - APEC Secretariat：enhanceundertaking research functions - Greater use of information technology.

11. 5.Tourism and Cultural Exchange Vietnam’s proposal: • There is a need to synergy tourism and cultural exchanges • Measures to promote APEC tourism cooperation: • annual APEC Tourism Fair; APEC Tourism and Investment Mart. • Facilitating tourism movement by • reducing unnecessary procedures, • facilitating connecting tours • direct flights between the world cultural heritages • The cultural exchange activities such as: the second APEC Film Festival and APEC Photo Exhibition. - Elaboration on the above issues will be submitted to SOM II - A statement on promoting tourism cooperation is to be issued at the 4th APEC Tourism Ministerial Meeting in October 2006

12. 6.Research on Socio-Economic Disparity • To deepen the understanding of socio-economic disparities • To ensure that all people to share the benefits generated by trade liberalization and economic growth • An international symposium between SOM II and SOM III in 2006 • Not detract from the EC’s structural reform agenda. • The work may extend beyond 2006

13. 6.Private Sector Development with Focus on SMEs • Examine the link between the ease of doing business and productivity/growth; • Present knowledge on the ease of doing business; • Share some best practices and examples; • Identify priority areas for possible government action/attention and • Discuss options on the ease of doing business、via capacity building projects and other means

14. Concluding remarks • A lot of work to do • The needs of Vietnam as the latest APEC member and the host of APEC 2006 for APEC members’ and APEC secretariat’s assistance in technical, financial and organizational aspects. • Contribution of this symposium - for Vietnam as a host and APEC as a whole