“What Vietnam and Uruguay have in common is that they are overly exposed to fluctuations in the global market. If the global market is in crisis, we’re in trouble because we can’t sell,” said Dang Xuan Dung, Vietnam’s ambassador extraordinary and plenipotentiary to Argentina, also accredited to Uruguay and Paraguay.
The ambassador gave a talk titled “Foreign Trade and Development,” which was part of the Department of International Studies’ lecture series. It took place on Wednesday, April 10, 2019, at the Pocitos Campus of Universidad ORT Uruguay.
Vietnam: A Place of Peace
Dang Xuan began the lecture by inviting the audience to think about Vietnam from a “non-Hollywood” perspective. There is a perception of Vietnam as a “war zone” that does not reflect reality. Although it has had conflicts with countries such as China, Japan, France, and the United States throughout history, today it is “a place of peace.”
In addition, the ambassador outlined Vietnam’s key characteristics: “We have a population of 94.5 million, an area nearly twice the size of Uruguay, and we are the 14th most populous country in the world.”
Inflation in Vietnam in 2018 stood at 3.54%. The GDP growth rate compared to 2017 was 7.08%, while Uruguay’s was 1.6% (although it had been expected to be 2.3%). “Achieving 7.08% was a real accomplishment for us. It’s not easy to achieve such growth,” explained Dang Xuan. “We’ve maintained our growth rate between 6 and 7% over the past decade.”
The causes of development
In 1986, Vietnam began a process of economic liberalization. “We integrated into the world and became involved in international affairs,” the ambassador explained. In 1995, it joined the Association of Southeast Asian Nations (ASEAN).
“Vietnam’s development is largely due to the implementation of sound foreign trade policies, opening up to the world, and striving to increase exports,” said Dang Xuan.
According to Dang Xuan, there are three main factors that have influenced the development of Vietnam's economy.
First, the low cost of manufacturing and outsourcing. In addition, 60% of the population is under 35, and the workforce is growing.
Second, it has signed free trade agreements with 12 countries.“We are brave for having accepted the risks and challenges that these agreements may bring,” said the ambassador.
Third, the Vietnamese government has sought to promote environmentally friendly businesses. “This has led to an exponential increase in foreign direct investment.”