Thayer Consultancy Background Brief:

ABN # 65 648 097 123

Vietnam and APEC
November 12, 2023

We request your assessment OF the upcoming APEC meeting in San Francisco, which
will be attended by Vietnam’s President.
Q1. How do you evaluate Vietnam's participation in APEC over the past 25 years?
ANSWER: Vietnam joined APEC in 1998, or twenty-five years ago, to promote its
economic integration in the regional and global economy. During this period Vietnam
served successfully as APEC chair on two occasions, 2006 and 2017.
In addition, Vietnam has been a member of many committees and working groups on
all matter of trade liberalisation issues. Vietnamese officials note that Vietnam has
made around 100 policy recommendations on a variety of issues such as trade,
investment, technical cooperation, sustainable and inclusive economic development,
human resource development, digital economy, cross-border ecommerce, health care
and counter-terrorism.
In sum, Vietnam has demonstrated its commitment to “comprehensive, proactive
international integration” in a positive and professional matter, earning respect and
raising Vietnam’s prestige in the international community.
Q2. What benefits does cooperation in APEC bring to Vietnam?
ANSWER: APEC was established to promote trade and investment liberalisation in the
Asia-Pacific by lowering barriers and encouraging regulatory reforms. Vietnam has
benefitted in four major ways: increased foreign investment, technology transfer,
human resource development, and increased trade through tariff reductions and
lowered transactional costs. These four benefits have supported Vietnam’s high
economic growth. Also, APEC’s policies have encouraged Vietnam to undertake
regulatory reforms and become more competitive internationally.
In addition, as APEC developed it has institutionalised an annual Leaders’ Meeting.
This gives Vietnam a seat at the table alongside the world’s most advanced economies
and powerful states.
Q3. How do Vietnam's proposals and initiatives contribute to promoting APEC
cooperation?
ANSWER: Vietnam has consistently promoted dialogue, inclusiveness, mutual benefit
and multilateralism within APEC. Vietnam also has contributed to promoting the
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interests of developing countries including sustainable development of the Mekong

subregion.
In recent years, Vietnam has been in the vanguard of pressing for practical
cooperation on a range of transnational issues affecting the well-being of the global
economy: climate change mitigation, pandemic remediation, supply chain resiliency,
inclusive and sustainable economic growth, green energy transition and ecommerce
and digital economy.
In 2022, when Thailand was Chair of APEC it launched the Bangkok Initiative
promoting the circular economy. Vietnam immediately supported Thailand to
advance the objectives of “balanced, inclusive and sustainable economic growth.” In
particular, Vietnam stressed the importance of digital transformation and resilient
supply chains.
Q4. Vietnam organized APECs summit in 2006 and 2017. What was the significance
and impact of this experience on Vietnam’s diplomacy?
ANSWER: In 2006, when Vietnam first assumed the chair of APEC, there was a
deadlock in efforts to promote global trade liberalization through the World Trade
Organisation’s Doha Round of negotiations. Under Vietnam’s leadership, consensus
was reached among APEC leaders to redouble efforts to break the Doha deadlock. A
stand-alone Statement on the Doha Development Agenda was adopted that
reaffirmed the leaders’ commitment to resume stalled negotiations without further
delay.
APEC leaders also adopted the Hanoi Action Plan to Implement the Busan Roadmap
Towards Bogor Goals. Under the Hanoi Action Plan goals were set to liberalize trade
and investment by 2010 for developed economies and 2020 for developing
economies. APEC Leaders also agreed to reduce transactional costs by five percent by
2010 and to promote a Free Trade Area of the Asia-Pacific.
In 2017, when Vietnam was chair of APEC for the second time, Vietnam had to deal
with the protectionist and unilateral policies of the Trump Administration that
threatened multilateralism. Under Vietnam’s chairmanship it was agreed to establish
the APEC Vision Group.
Vietnam exerted leadership on the sidelines by reviving the failed Trans-Pacific
Partnership into a new Comprehensive and Progressive Trans-Pacific Partnership
(CPTPP). The CPTPP has now become a reality and along with the Regional
Comprehensive Economic Partnerships is one of the mainstays driving economic
growth in the Indo-Pacific.

Suggested citation: Carlyle A. Thayer, “Vietnam and APEC,” Thayer Consultancy

Background Brief, November 12, 2023. All background briefs are posted on Scribd.com
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Thayer Consultancy provides political analysis of current regional security issues and
other research support to selected clients. Thayer Consultancy was officially
registered as a small business in Australia in 2002.