Vu Tuyet Loan^*

1. The Asia-Pacific Economic Forum (APEC) was established in 1989 through an initiative of Australia in the Conference of Economic and Trade Ministers held in Canberra, Australia. The 12 founders set up APEC for cooperation activities and economic dialogue in the Asia-Pacific region.APEC membership currently stands at 21 after 4 new admissions. Its member generates USD 19,000 billion, accounting for 60 % of global GDP. Total trade value stands at USD 550,000 billion and its member countries cover 52% of the world territory, represents 59% of the world's population and 70% of the global natural resources. The initial objective of APEC was to build a prosperous region through economic cooperation and growth. APEC is now concerned with security and politics in the region due to the failure of the Doha negotiation round.

As a member of APEC since 1989, Vietnam has had many favorable opportunities to integrate into the world economy through attractive Foreign Direct Investment (FDI) policies, trade volume increases and especially through learning from the experiencs of other APEC-member countries.

In 2006, Vietnam organises an important event - the APEC Summit in Hanoi. As the host country, Vietnam will advance suitable initiative of scientific value and high effectiveness.

2. During the past 2 decades, APEC has progressed a long way, overcoming innumerable difficulties and challenges. It has achieved remarkable results with membership increasing from 12 to 21. The Forum was originally established at a ministerial level and was raised to s State level with richer contents and activities, involving three cooperation pillars of trade and investment liberalisation, trade and investment facilitation and cooperation in technology and economies. APEC has confirmed its position in multilateral trade system, asserting its role in the settlement of common problems, particularly in terms of economics.

In the context of increasing economic cooperation in the region and the world, as economic, trade and investment liberalisation has become a global trend, the establishment of APEC was a timely response to the demands and interests of Asia-Pacific economies. As a regional pacesetter in the promotion of trade and investment liberalisation and economic cooperation, APEC has rallied all big economies in the region - the most dynamic economies in the world. It is obvious that, during its 15 years of development, APEC has gradually transformed from a loose group into an increasingly stronger regional entity to be a regional community. In reality, the development process of APEC has contained several factors of a community, developing in many domains. This is an irreversible trend for the long-term future. It reflects the vision of APEC leaders, which was manifested in the chosen themes of APEC Chile 2004: "For a community -Our future" and APEC Korea 2005: "Towards a community: confronting challenges and creating changes."

In general, APEC is recognised for its important roles as well as its lively and practical activities. APEC always needs changes and reform. It major objectives and pillars must been maintained. However, the development process of APEC does not only evolve around the concept of an open region, but also towards an APEC with more emphasis on overall diplomatic policies and strategies. The current concern of APEC is the slow process of the Doha negotiation round which has a direct influence on the whole agenda of APEC. The World Trade Organisation is confronting some obstacles in the negotiation rounds such as trade and investment facilitation, policies on competition and transparency in governmental procurements and the liberalisation of IT products. These issues are discussed by APEC members to build APEC Program of Action in the coming time.

Additionally, APEC will have to make stronger commitments to the building of human resources and institutions. It must also assist vulnerable members to implement development polices and reform necessary institutions to capitalise on opportunities presented by trade and investment liberalisation. Only by so doing, can the "APEC process" bring about benefits to its members. This is a prerequisite to ensure consensus and the high effectiveness of APEC. As APEC is not a financially supporting entity, it needs coordination of international entities like the World Bank (WB) and the Asia Development Bank (ADB) to realise supporting projects for developing member economies.

At the 2006 APEC Ministers' Meeting in Bussan organised by Korea, internal differences among countries participating in the global negotiation round were identified. The major point of trade negotiation is to remove the stalemate in the WTO regarding European and some other developed countries' agricultural subsidies. Thus, APEC must play a more central role in these negotiations.

3. Since 1989 seven years after acceding to APEC since 1989, the economic relations between Vietnam and other APEC member's countries have greatly developed. APEC is Vietnam's largest foreign investment region, accounting for 62.7% of the total foreign investment in Vietnam. Its Official Development Assistance also ranks the first. Vietnam's export value to APEC is also the biggest, standing USD 14.7 billion in 2003 and accounting for 72.8% of Vietnam's total export turnover. In 2004, it reached USD 15.5 billion or 58.5 %. Vietnam's imports from APEC countries is also the highest among regions reaching USD 20.1 billion in 2003 or 79.4%. In 2004, the figure was 25.3% or 79.2 %. APEC's direct investment Vietnam from 1989 in July 2005 totaled USD35.3 billion through 5,354 projects.

As a member of APEC, Vietnam has enjoyed practical interests from cooperation activities and expanded equal cooperation relations based on mutual interest with all member economies. Through APEC, Vietnam has won the support of partners in the Asia-Pacific region regarding its accession to the WTO.

Vietnam has manifested its positive role in cooperation activities of the Forum. Many initiatives of Vietnam have been highly appreciated by APEC member countries which is especially reflected in Vietnam being elected as APEC Chairman and chosen as the venue of APEC Summit 2006. This is a living evidence of the increasing role and prestige of Vietnam in the region.

Vietnam's major activities in APEC include the development of the Individual Action Program, some programs in the Collective Program of Action, Technical Cooperation Programs and other activities.

The IndividualAction Program (IAP) is not only a document demonstrating Vietnam's road map to implement the Bogor objectives of APEC on trade and investment liberalisation but also an important tool to disseminate information about Vietnam's trade and economic policies to APEC businesses so as to promote trade relations and attract investment.

Vietnam has actively participated in building a new APEC e-IAP format to make its member countries' IAP more clear and transparent and bring about maximum benefits to businesses. Every year, concerned ministries and branches update changes in policies and structures in their respective areas to make suitable changes to Vietnam's IAP. Through annual development and IAP submission, Vietnam has quickened the process of making trade and economic policies and regulations transparent, improving the business environment and renewing the State's economic management tools.

The Common Action Program contains several aspects like trade, investment and business mobility and intellectual property. Deep involvement in these areas is especially difficult for Vietnam. Thus, the Vietnamese Government has actively participated in the two major aspects of the Sub-Committee on Standards and Conformance and the Sub-Committee on Customs Procedures. In the coming time, Vietnam will become involved further in the new aspect of intellectual property and mobilityof businessmen.

In other forums, Vietnam has advanced some realistic initiatives such as request for technical assistance and persuading of member countries not to demand bilateral negotiations. In the meantime, Vietnam has taken advantage of bilateral cooperation mechanisms with Australia, the US and Japan to develop a series of assistance project on capacity building, including important projects like e-commerce ordinances, and assistance in developing the Competition Law. It has also organised information sharing activities, policy dialogues and cooperation, thus helping improve officials' qualifications, capacity and understanding on APEC cooperation in particular and on integration into the world economy in general.

During seven years in APEC, Vietnam has developed and implemented many projects within the framework of APEC, focusing on new aspects such as competition policies, intellectual property, bio-technology, electronic trade and information technology. Vietnam currently has implemented 11 projects with a total capital of USD 6 million and has proactively made 20 initiatives regarding different aspects of APEC.

Results gained by Vietnam's accession to APEC during the past 7 years are encouraging. First, Vietnam has had opportunities to contact and understand new issues in the global economic and political situation and the region to help its integration into the world economy. Second, Vietnam has had many favourable conditions to speed up the process of negotiations to join the WTO because the 15 areas of APEC IAPs and CAPs are also major areas concerning the WTO. Vietnam has had conditions to improve its capacity in important sectors such as fisheries, tourism, science and technology, agriculture, telecommunications and energy.

In the coming years, besides selective participation in APEC activities, Vietnam must concentrate on developing its IAP. It does not only reflect Vietnam's commitment to APEC but is also an important political task to introduce its legal system to other countries.

4. The Permanent Vice-Minister of the Foreign Ministry, Mr. Le Cong Phung - Chairman of APEC 2006 confirmed that hosting APEC-2006 is one of the most important external relation activities of Vietnam in 2006. The identification of key issues of the APEC-Vietnam Year 2006 depends on the following factors. First, review the theories and experiences of 20 years of renewal, the organisation of the 10th Party Congress to map out the 5-year socio-economic development plan to 2010 and confirmation to the world of Vietnam's determination to carry out renewal policies and international integration. Second, joining the WTO and promoting its WTO membership to accelerate industrialisation and modernisation. Third, as a developing economy and a new member of APEC, Vietnam must fulfill its role as the Chairman of APEC 2006 to make a substantial contribution to the development of APEC and enhance its role and prestige in the world.

In 2006, Vietnam must give priority to the following key areas: implementing the Bussan road map, accelerating the Doha round, promoting investment and technology transfer, fostering safe and efficient capital growth, facilitating public and private sectors cooperation for human security, encouraging the growth of small and medium-sized businesses , furthering economic and technical cooperation to ensure mutual interest and development, making sustainable development through effective cooperation and implementing APEC vision on community building.

On the basis of common APEC objectives, Vietnam, as the host country, should propose the theme for APEC Vietnam 2006. In principle, the central, subsidiary and priority themes proposed by the host country must have the consensus of all APEC members to encourage efforts of all economies in realising all the themes and priorities of the APEC year.

Basically, the TSP should meet at least three of the following requirements: the vision, continuity and imprint of the host country. With the proposal and implementation of TSP, Vietnam will leave deep imprints on APEC 2006 by giving prominence to the process of development and requirements of the time on sustainable development and promoting an important orientation of the APEC process - a cooperation orientation for the people.

The main theme of APEC Vietnam 2006 is: "Towards a dynamic community for sustainable and prosperous development". The theme and sub-topics proposed by Vietnam have received the support of APEC members. APEC leaders have confirmed their support and assistance to help Vietnam successfully organise APEC Vietnam 2006 and the APEC Summit.

We are confident that by exerting all our efforts and with the high determination of the Party, the Government and the people, Vietnam will make APEC Vietnam 2006 a success./.

Source: Tapchicongsan, No.102/2006