Phát triển quan hệ thương mại việt nam với các nước đông á đến năm 2030 tt tiếng anh

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INTRODUCTION
1. RATIONALE OF THE STUDY
In the context of increasing globalization, developing trade relations has
become an urgent need for most countries in the world.
Theoretically, the studies of Smith (1776), Ricardo (1817), Heckscher-Ohlin
(1933) and other researchers have revealed that international trade relations are
based on differences in countries’ human resources, levels of human resource
management, resources, technology, and levels of socio-economic development.
Trade relation development allows countries to participate in division of labor and
international cooperation; as well as to improve the economic efficiency through
specialization and to take advantage of economies of scale. On the basis of trade
relation development, the integration in terms of politics, culture, society, national
security, etc. will be brought about and promoted. For developing countries, their
relations with developed countries in the region can result in the establishment of
production network and the enhancement of regional cooperation (Kojima 1978,
Krugman 1991).
In practice, in the development of trade relations in a market economy, the
role of the state is particularly important. This is evident through more than 30
years of innovation in Vietnam. Vietnam has now established trade and investment
relations with over 230 countries and territories, signed and implemented/will
implement 16 free trade agreements (FTA), including new generation ones. Trade
and investment relations with other regions, especially with East Asia region have
experienced significant development. However, in the process of developing trade
relations with East Asia, Vietnam also faced many problems: Firstly, the regional
trade relations are currently focused on only 3 of Northeast Asian countries;
Secondly, the trade relation between Vietnam and East Asia still focuses mainly on
bilateral relations. Thirdly, the cooperation has only developed in width but has
not really gone into depth. Therefore, Vietnam does not seem to have fully
exploited its strengths. Fourthly, taking advantage of tax incentives, especially

preferential utilization rate under C/O is still low. Fifthly, in trade in goods, the
prevailing situation with Vietnam is an increase in trade deficit from East Asia.
Trade volume increases but the index of trade density and market share shows the


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relatively small proportion of goods flow from Vietnam exported to or imported
from these markets... In the coming time, East Asia is expected to become the
focus of the shift in regional role in relation to other regions. The guiding
documents in recent years crucial to Vietnam also emphasize on the important
position and role of East Asia in the economic development, trade and security of
Vietnam. Therefore, it is necessary to conduct a study on “Trade Relationship
Development between Vietnam and East Asian Countries, with visions to the Year
2030”, making meaningful contributions to both theories and practice.
2. LITERATURE REVIEW
Current studies related to the research topic, both within and beyond the
country, were reviewed and classified into 3 categories: Firstly, research on trade
relations between countries, both in English and in Vietnamese, including: Smith
(1776) in "An Inquiry into the Nature and Causes of the Wealth of Nations",
Ricardo (1817) in "Principles of Political Economy and Taxation", Heckscher &
Ohlin (1933) in "Inter-regional and International Trade”, Linder (1961) in “An
Essay on Trade & Transformation”, Posner (1961) in “International Trade &
Technical Change”, Vernon (1966) in “International Investment & International
Trade in the Product Cycle”, Porter (1990) in "The Competitive Advantage of
Nations"; thesis by Hoang Xuan Hoa (2002) in "Theoretical and Practical Basis
of Development of Vietnam – EU Trade Relations”, Trinh Thi Thanh Thuy (2007)
in "The Process of Developing Trade Relation between Vietnam and Russia in the
Context of International Economic Integration", Tran Quang Huy (2015) in
"Solutions for Developing Trade Relation between Vietnam and Countries in the

Southern African Customs Union - SACU”; Secondly, research on integration and
economic trade development between countries in geographical areas, with
research of Viner (1950), Meade (1955), Lipsey (1957), Balassa (1961), Akamatsu
(1962) ), Johnson (1965), Kojima (1978), Krugman (1991); Thirdly, with 80
research on trade relations between Vietnam and East Asian countries and with
Japan, China and South Korea respectivelly. This section not only clarifies the
scientific contributions of existing research (in theory and practice) but also
identifies a research gap.
3. RESEARCH AIM AND OBJECTIVES
3.1. Research aim


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On the theoretical and practical bases of management of developing
international trade relation between Vietnam and East Asian countries, the
research proposes solutions to developing trade relations between Vietnam and
East Asian countries by 2030.
3.2. Research objectives
Firstly, to selectively systematize and interpret some theoretical bases of
trade relation development between countries; Secondly, to analyze and evaluate
the actual situation of trade relation development between Vietnam and East Asian
countries from 2007 up to now, with an attempt to identify achievements as well
as existing shortcomings and their causes; Thirdly, to examine international,
regional and national contexts, to form opinions and orientations, and to propose
solutions to developing trade relations between Vietnam and East Asian countries
by 2030.
4. RESEARCH FOCUS AND SCOPE
4.1. Research focus
The research focus includes theoretical and practical issues regarding the

trade relations between Vietnam and East Asian countries.
4.2. Scope of the study
Firstly, the scope of the research is limited to East Asia. The research,
however, only focuses on the trade relations between Vietnam and some
neighboring countries, namely Japan, South Korea, China and ASEAN, which
have official cooperation with Vietnam and are major partners with strong
influence on Vietnam’s trade, investment and other international relations.
Secondly, regarding management practices in Vietnam, the thesis focuses on
the management functions of law enforcement agencies such as the government
and ministries, which are central management agencies, with the following 2 main
areas: The State establishes a framework for the development of international
trade relation; The State uses tools/measures to promote the development of
international trade relation.
In the thesis, the trade relation between Vietnam as an independent and
sovereign state and Japan, South Korea and China country is considered bilateral.
In this thesis, the following are considered multi-lateral: Trade relation between
Vietnam and ASEAN as a whole; trade relation conducted by Vietnam as a


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member of ASEAN in ASEAN + 1 cooperation models, ASEAN + 3; Vietnam’s
relations with East Asian countries within the framework of regional cooperation
initiatives and multilateral cooperation forum in the region. Trade relation and
developing trade relation between Vietnam and East Asia, in this thesis, are limited
in the field of trade in goods.
Thirdly, the research explores the actual situation of developing trade
relations between Vietnam and East Asian countries and the achievements from
2007 up to now. Recommendations and solutions to developing trade relations
between Vietnam and East Asian countries can be applied by 2030.

5. RESEARCH METHODS
5.1. Research methodology and approach
Dialectical and historical materialism was adopted as the foundation of the
study. Research approaches include: from theory to practice; cause and effect;
systems approach; with the state as the research subject.
5.2. Research methods
5.2.1. Data collection methods
- Primary data collection methods. Primary data were collected from indepth interviews with experts, researchers in universities and other institutions.
- Secondary data collection methods. Secondary data were collected from
sources within and beyond the country. The prior are: summary reports, data
published quarterly and yearly as well as posted daily on the websites of
ministries, for instance Ministry of Industry and Trade, General Statistics Office,
General Department of Vietnam Customs, etc.; articles and studies published in
journals such as Journal of Northeast Asian Studies, Journal of Trade, etc.; books
and reference materials from the library of Thuongmai University and the National
Library. Data from foreign sources were mostly collected from reliable websites
such as Trademap, UNCOMTRADE, WITS under World Bank, WTO, ASEAN
information portal, etc.
5.2.2. Data analysis methods
Primary and secondary data were analyzed using general analysis of
theories, descriptive statistical methods, comparative statistics. They were
checked, evaluated in terms of appropriateness and accuracy, then selected to be
calculated and analyzed. Excel and website of WITS were employed to calculate


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the international trade index to reflect the trade relation results in Chapter 2.
6. NEW CONTRIBUTIONS OF THE STUDY
Theoretical Contributions

The thesis has systematized and further developed theoretical and practical
bases for trade relationship development. Besides clarifying the nature of trade
relationship development, forms and criteria for assessment, the thesis has
focused on principles and requirements of trade relationship development. In
particular, the thesis seeks to examine the following 2 points: that the State of
Vietnam creates frameworks for the establishment of trade relationships and that
the State of Vietnam employs tools/measures for the development of trade
relationships. In addition, the thesis has indicated international, regional and
national factors that affect international trade relationship: The international and
regional factors are globalization, trade liberalization trends, advances in science
of engineering and technology, emergence of new issues in international
relations, etc. The national factors include the national policies of international
economic integration, conditions for the development of international trade
relationship (i.e. the country’s law and policies, physical and social
infrastructure, competing capacity, human resources, etc). Furthermore, the thesis
has studied the experience of such selected countries as China, Japan and South
Korea in developing trade relationships and drawn lessons for Vietnam,
especially with the East Asian region.
Practical Contributions
Reviewing Vietnam’s potential to develop trade relationships with East
Asian countries and the status quo of developing trade relationships in the East
Asian region, the thesis conducted an in-depth analysis of the status quo of
Vietnam’s developing trade relationships with East Asian countries from 2007 up
to now. The analysis focuses on clarifying the status quo of developing trade
relationships with East Asia and the applied policies of developing trade
relationships with East Asia.
The thesis employed the qualitative research method, conducting in-depth
interviews with experts in order to analyze and offer judgements and evaluation
of achievements and limitations of developing trade relationships with East Asia
from 2007 up to now. To be specific, the achievements are demonstrated with

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evidence of having facilitated trade relationship development in different forms
and at different levels, established frameworks for the development, created
mechanisms for supporting and promoting trading relationships, expanded trade
scale, developed various economic relations, cultural exchanges, foreign direct
investment... In the meantime, the thesis has indicated the limitations of
organizing the implementation of the national policies, collaborating to resolve
disputes and to deal with constraints emerging from the status quo of trading.
Recommendations
Based on the theoretical and practical backgrounds of trade relationship
development with China, South Korea, Japan and ASEAN, the thesis proposes
viewpoints, orientations and solutions in order to develop trade relationships
between Vietnam and East Asia up to the year 2030. In particular, the solutions
are categorized into some main groups: building a comprehensive framework of
cooperation and deepening the relationship with East Asia countries, promoting
negotiations with East Asian countries, conducting two-way communication at
government level, developing human resources, addressing trade deficit,
collaborating to promote trade effectively, etc. Furthermore, the thesis also
proposes a number of conditional solutions such as continuing breakthroughs in
innovation of integration thinking, raising social awareness about the integration
and development of trade relations in the new context, improving in the business
environment and the law, strengthening the assignment and decentralization in
state management...
7. STRUCTURE OF THE STUDY
Apart from the Introduction, Conclusion, List of Abbreviations, List of
Tables and Figures, References, Appendices, the research consists of 3 chapters.
Chapter 1. Theoretical framework and practical experience of developing

trade relation between countries
Chapter 2. Analysis and evaluation of the actual situation of developing
trade relation between Vietnam and East Asian countries
Chapter 3. Opinion, orientation and some solutions to developing trade
relation between Vietnam and East Asian countries by 2030


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Chapter 1. SOME THEORETICAL BACKGROUNDS AND PRACTICAL
EXPERIENCE OF DEVELOPING INTERNATIONAL TRADE
RELATIONS
1.1. THE CHARACTERISTICS, ROLES AND FACTORS THAT AFFECT THE
DEVELOPING OF INTERNATIONAL TRADE RELATIONS
1.1.1. The natures, forms and characteristics of developing international trade
relations
In this section, the thesis introduces concepts of international trade relations,
trade relations development, thereby clarifying the nature of trade relations
development among countries, forms, characteristics, roles and factors affecting
trade relations development .
- International trade relations is used to mention all relationships in different
forms of linkage and cooperation on various levels that bring mutual benefits.
- The development of international trade relations: In essence, the
development of international trade is the process of reflecting the efforts of the
parties to create change in all aspects of established trade relations, including
scale, scope, content, and nature... with the aim of increasing the efficiency and
sustainable development of this relationship.
The forms of developing international trade relations
- Regarding the nature of the relationship: Bilateral and multilateral trade
relation development.

- Regarding the levels of cooperation: First, negotiate and join global
economic, financial and financial institutions and institutions; Secondly,
cooperation in regional, inter-regional conferences, sub-regional/sub-regional
cooperation; Thirdly, cooperation in regional forums; Fourthly, participating in
regional economic links; Fifthly, cooperating under bilateral or regional
agreements or FTAs.
- Regarding cooperation in policy making: information exchange, dialogue
and consultation, policy coordination, policy consistency.
The characteristics of developing international trade relations
As it is among those special international relation, developing international
trade relations has its own characteristics: Firstly, this is considered the
manifestation of national views, decisions and guidelines on foreign policy.


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Secondly, this is a step that the governments involved in regional and international
economic and trade integration make in order to create a premise for promoting
cooperative relations in other fields. Thirdly, in developing trade relations,
governments are considered to be voluntary and proactive in the international
commercial games. Fourthly, in recent years, international trade relations have
been developed at a fast pace, with a larger scale and a wider scope. Fifthly,
developing international trade relations is carried out on the basis of established
trade relations and according to the interests and needs of the involving countryies
themselves.
The criteria for evaluating the development of international trade
relations
Based on the research results of Hoang Xuan Hoa (2002) and Tran Quang
Huy (2015), the author of this thesis inherits and identifies criteria to evaluate the
development of international trade relations by width and by depth:

Firstly, criteria by width, which evaluate development of international trade
relation by the development in number of relations: The number of partners to
build international trade relation with; The number of signed commitments and
national agreements; The number of mechanisms to monitor and support the
development of international trade relations.
Secondly, criteria by depth, which evaluate development of international
trade relation by the quality of the relations: Structure of partners to build
international trade relation; Structure of types, forms and nature of cooperation;
Areas of commitments and cooperation, as well as the level of commitment in
signed agreements; The influence of developing international trade relation on the
country’s socio-economic development, FDI attraction and aid…
In order to evaluate the development of international trade relation, the
author of this thesis uses the above-mentioned criteria. However, in order to see
the development level of trade relation and investment, the following basic indexes
can be taken into consideration:
+ Regarding investment relations: the number of investment projects, the
scale and value of investment capital flows into the country, and other factors such
as the movement of skilled workers and technology transfer…
+ Regarding service: growth-rate and turnovers of import-export services,
structure and proportion of each type of service and market…


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+ Regarding goods: goods import-export turnovers, growth-rate of importexport turnover, structure of import-export market, structure of import-export
goods…
In addition, in order to evaluate the results of developing international trade
relation of goods, the author of this thesis uses the following basic indexes:
Trade Intensity Index – TII
TIIij = (xij/Xiw) / (xjw/Xww)

In which: xij is the total export turnover of country i to country j; X jw is the total
import turnover of country j; Xiw is the total export turnover of country i;
Xww total export worldwide
Coefficient of Revealed Comparative Advantage – RCA
In which: ExA is the total export turnover of product x of country A; E A is the total
export turnover of country A; Exw is the total export turnover of product x
worldwide; Ew is the total export turnover worldwide
Export Specialization Index – ESI
In which: Xijk is the export of product k of country i to country j; X ijt is the total
export of country i to country j; Mjk is the import of product k of country j; M jt is
the total import of country j
Trade Complementarity Index – TCI
In which: Mij is the proportion of goods j in the total import of country i; X jk is the
proportion of export goods j in the total export of country k
Regional Orientation Index – ROI
In which: xkij and xkiw is the export turnover of product k of country i to j and the
world; Xij and Xiw is the export turnover of country i to j and the world.
If 0 < ROI < 1: In-region export is lower than out-region export.
If ROI =1: In-region export is equal to out-region export.
If ROI >1: In-region export is higher than out-region export.
1.1.2. The necessity and roles of developing international trade relations
Developing international trade relations is necessary. This need arises from
the needs and benefits of developing trade relations with satisfaction, meeting the


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domestic needs and development practices of the country. Specifically: Firstly,
there is a difference in natural resources among countries; Secondly, there is a
difference in human resources and the use of human resource across countries;

Thirdly, the development of science and technology; Fourthly, the level of
economic development of countries.
For the above reasons, it can be seen that the development of trade relations
plays an important role in the development of the country. These roles are
considered politically, diplomatically and economically. In terms of political,
diplomatical aspect, developing international trade relations contributes to the
expansion of diplomatic relations and other external relations; empowers the
nation in the international arena. In terms of socio-economic aspect, developing
international trade relations helps the country to gradually participate in labor
division and international cooperation; efficient exploitation and use of resources;
better satisfy domestic consumption needs ...
1.1.3. The factors that affect the development of international trade relations
Regional and international factors
Firstly, globalization is the main impact on the world economic
development; Secondly, the trend of trade liberalization; Thirdly, the correlation
between subjects in international trade relations; Fourthly, the development of
science and technology and technology; Fifthly, there are new problems in
international relations. Finally, the economic and political development of some
main countries has changed dramatically and affected the international trade
relations. In East Asia region, the impact of the global economic and financial
crisis, followed by systemic changes over the past two decades has also made
clearer the changes in policies of East Asian countries.
Domestic factors
Firstly, the national policy of international integration (international
economy); Secondly, the set of conditions for developing international relations.
This set of conditions includes domestic laws and policies, conditions for physical
and social infrastructure, competitiveness, quantity and quality of human
resources, the country’s geography location and political and diplomatic status...
1.2. THE PRINCIPLES, REQUIREMENTS AND AREAS OF DEVELOPING
INTERNATIONAL TRADE RELATIONS

1.2.1. The principles for developing international trade relations:


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Developing trade relations that follow certain rules and requirements. When
participating in international trade relations, a country needs to follow a number of
basic principles to ensure its rights and interests, such as: the principle of ensuring
equality on sovereignty, the principle of ensuring mutual benefits and the principle
of preventing other countries from interfering with its internal affairs. In addition,
there are other principles such as: non-discrimination in trade, ensuring
sovereignty independence and territorial integrity, multilateralizing and
diversifying external relations ...
1.2.2. The requirements for developing international trade relations:
Following the principles of trade relations development, when taking
specific steps and solutions to develop trade relations, governments should pay
attention to specific requirements such as: developing trade relations must aim at
achieving national development; developing trade relations between countries
must contribute to promoting and enhancing the country’s status; creating
cohesion and developing cooperation in other fields; developing trade relations
based on exploiting national advantages; developing trade relations between
countries should be based on existing practices and commitments; developing
trade relations between countries is to exploit opportunities brought about by
cooperation with partners.
1.2.3. The areas for developing international trade relations:
The development of international trade relation includes various points: the
State gives orientation for developing international trade relation by development
strategies and planning; the State provides framework for the establishment of
international trade relations through negotiations and signing of FTAs; the State
creates environment for developing international trade relation through the use of

management tools to promote and develop international trade relations; the State
organizes and assign and decentralize to implement commitments; the State
provides information and disseminate the legal documents and the implementation
of policies and laws on developing international trade relations. However, within
the scope and objective of this thesis, the author focuses on 2 points:
Firstly, the state creates the framework for establishing trade relations,
which includes: Negotiating, signing cooperation agreements, bilateral and
multilateral trade agreements; Participating in multilateral forums and programs in
the region.


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Secondly, the state uses tools/measures to promote and develop trade
relations, which includes: Establishing mechanisms for monitoring domestic trade
relations development; Upgrading cooperative relations through talks, state visits,
joint statements; Using policy measures to promote and develop international
trade relations in all areas including trade in goods, trade in services and
investment. The basic policies used by the state to develop international trade
relation include: international trade policy, human resource development policy,
policy of infrastructure development, legal environment improvement,
construction planning export production zones ...
1.3. INTERNATIONAL EXPERIENCE AND LESSONS FOR VIETNAM IN
DEVELOPING INTERNATIONAL TRADE RELATIONS
Through studying the experiences from China, Japan and Korea in
developing trade relations, the researcher draws out some lessons for Vietnam:
Firstly, change thinking about regional integration. In international
relations, the influence of regional and international environment is clear. This
change of mindset aims to facilitate and lead to adaptation in the development
process.

Secondly, the lesson of creating framework for international trade relation:
developing a strategy to sign FTAs as a foundation for the development of
international trade relation; The selection of partners should take into account the
complementarity of already signed WTO commitments and future partners;
Actively participate in regional cooperation programs and initiatives.
Thirdly, the lesson of using tools/measures to promote and develop
international trade relation: develop a roadmap to adjust policies; enhance the
competitiveness for domestic sectors, especially those sectors/commodities that
can exploit domestic advantages; promote the role of the Government and related
functional departments in trade promotion and business support, implement
cooperative programs with partners.
Chapter 2. ANALYZING AND EVALUATING THE SITUATION OF
DEVELOPING TRADE RELATIONS BETWEEN VIETNAM AND
EAST ASIA
2.1. SOME OVERVIEWS OF THE EAST ASIA AND THE POTENTIAL OF
VIETNAM’S TRADE RELATIONS WITH THE EAST ASIAN COUNTRIES


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2.1.1. An overview of the natural and socio-economic characteristics of East
Asia region
Natural chararacteristics of East Asia: The East Asia region, consisting of
19 countries and territories, is located in East Asia and is a combination of two
sub-regions that are Northeast Asia and Southeast Asia. Most East Asian countries
are exposed to the Pacific Ocean. Therefore, these countries have a favorable
geographical position in international trade activities and integration into the
world economy. In addition, East Asian countries have abundant natural resources,
especially minerals such as coal, tin, copper, oil... These resources are mainly
concentrated in China and ASEAN countries.

Socio-economic conditions of East Asia: As of February 2019, the
population of East Asia is over 2.3 billion, accounting for 51% of the total Asian
population and 30% of the total world population. This region provides a large
consumer and labor market for the world. The young population of East Asia and
its potentials one of the strengths of this region. They are characterized by
diligence, hard work, a thirst for learning and an economical way of living.
East Asian countries have many cultural identities, characterized by Asian
culture and influenced by Confucianism. Educational level in the region are is
ranked quite high in the world, compared to many other regions of developing
countries.
With a high economic growth rate compared to other regions, East Asia is
currently the most dynamic economic region and one of the leaders in world
economic development.
2.1.2. Overview of the current status of cooperation and development of trade
relations in East Asia
The cooperation and development of trade relations in East Asia has been
driven mainly by market forces before the 1990s of the twentieth century. Since
then, this process has been reinforced by initiatives related to bilateral and
multilateral cooperation. However, in cooperation, there are still many obstacles
for development. It is the difference in development level, culture, language,
beliefs and ethnicity and differences in political institutions and nationalism.
Therefore, trade and economic development cooperation in East Asia differs from
other cooperation, with political factors playing a special role in promoting the
regional economic and trade cooperation.


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Regarding framework and cooperation mechanism: Programs and initiatives
with diverse and rich cooperation mechanism have been proposed to support the

regional integration process. In addition to the framework of intra-ASEAN trade
cooperation, ASEAN countries also pioneered in the development of FTAs with
outsiders under the ASEAN+1, ASEAN+3 model. Regional trade cooperation is
also motivated by the signing of bilateral FTAs, subregional cooperation
initiatives, development triangles and quadrangles, dialogue forums...
Regarding the level of cooperation: within the framework of regional
cooperation over the past 20 years, most of the agreements have low levels of
liberalization, especially sub-regional cooperation agreements and initiatives.
However, from 2012, with the initiation of RCEP, liberalization levels are higher
than what was committed in the 5 "ASEAN + 1" FTAs that are expected to be
implemented.
50
45
40
35
30
25
20
15
10
5
0

45
38

40

36

33

31

25

37
25

20
14

10

15

16

16

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Figure 2.1 FTAs of East Asian countries and territories, as of February 2019
Note: The number of FTAs include signed and valid FTAs, signed but not yet in
effect FTAs, negotiated or proposed FTAs. East Timor and North Korea have no data
Source: ADB (2019), accessed February 24, 2019, < />Regarding the results of cooperation: the whole region currently has over
400 FTAs, of which 173 FTAs are currently in effect and are being implemented;
The regional trade scale in 2018 was US $2.34 trillion...
2.1.3. Potential in developing trade relations between Vietnam and East Asian
countries

In relations with East Asian countries, it is Vietnam’s most favorable


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condition is located in East Asia region, so there are similarities in culture, religion
and favorable geographical conditions. Vietnam and East Asian countries, with a
long and historical links, have established a relatively stable and on-going
relationship. However, looking at the factors affecting the development of
international trade relations, there are a number of factors such as: geographical
location, resources, human resources, culture, natural resources, level of
development. Economic development... In each of these factors, there are yet both
advantages/potentials and disadvantages for Vietnam in developing trade relations
with East Asian partners.
2.2. ANALYSIS OF THE CURRENT SITUATION OF DEVELOPING TRADE
RELATIONS BETWEEN VIETNAM AND EAST ASIAN COUNTRIES IN THE
PERIOD OF 2007 TO NOW
2.2.1. General overview of developing trade relations between Vietnam and
East Asian countries
Firstly, regarding the setting up of a framework for establishing trade
relations with East Asian countries
The basis for the development of Vietnam’s trade relations with East Asia
over the past years has been based on bilateral and multilateral agreements signed
between the parties. In addition to multilateral forums, Vietnam is also involved
in regional cooperation initiatives, especially with China and ASEAN countries.
The areas of cooperation in these programs/initiatives are diversified and focus on
the exploitation of advantages for economic and trade development, towards
sustainable development.
Secondly, promote and develop trade relations with East Asian countries
- Regarding the establishment of trade monitoring and support mechanisms:

In the framework of the implementation of signed trade agreements, ASEAN and
its partners have established many support and cooperation mechanisms such as:
making joint statements, building an action program, conducting a summit within
the framework of ASEAN cooperation with partners, organizing ministerial
meetings, conducting meetings with senior officials... The ministries and sectors
are also actively involved in supporting domestic entities to promote trade with
East Asian countries. Trade disputes are often dealt with on the basis of WTO law
or under the commitments of signed FTAs.


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- On the development and enhancement of cooperation relations: Of the 34
countries that have partnerships with Vietnam, there are 12 East Asian countries.
In cooperation with East Asian countries, along with increasing in scale and trade
value, cooperation in other areas is also promoted, especially foreign direct
investment.
The results of promoting and developing trade relations with East Asian
countries are reflected in the increase in trade exchange activities, both in size and
value, and in the confirmation of key position of the region (both in the political
and economic sense).

Figure 2.2 Vietnam’s total import-export turnover with East Asia and the
world, in the 2007-2017 period
Source: Vietnam Statistical Yearbooks and author’s compilation
2.2.2. Current policies to develop Vietnam’s trade relations with East Asian
countries
Vietnam has no separate integration orientation and trade policies in
developing trade relations with East Asia. Laws, integration policies, trade
policies, infrastructure development policies, human resource development

policies... with East Asia are included in the country’ system of legal documents
and policies.
Regarding international integration policies: Resolution No. 07/NQ-TW in
2001 on international economic integration, Resolution No. 08/NQ-TW in 2007 on
some major guidelines and policies for the economy fast and sustainable


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development when Vietnam is a member of the World Trade Organization,
Resolution No.22/NQ-TW in 2013 on international integration, Decision
No.40/QD-Ttg in 2016 on the general strategy international integration to 2020,
vision to 2030...
Regarding international trade policy: 30 years after “Đoi moi”, from a
closed economy, Vietnam has shifted trade policy towards export and has become
the country with the highest openness index in the world. In most FTAs with East
Asia, Vietnam has committed to abolishing about 90% of tariff lines and
abolishing most quantitative restrictions.
Regarding human resource development policy: In the period after 2007,
human resource development orientation is mentioned in the Socio-economic
Development Strategy 2011-2020, Decision No.579/QD-Ttg in 2011 approving
Vietnam's human resource development strategy for the period 2011-2020.
Regarding laws: many legal documents are amended and supplemented. In
trade, many guiding documents were approved: Decision No.2471/QD-TTg on
import and export strategy of goods in the period of 2011-2020, orientation to
2030, Decision No.1467/QD-TTg on developing regional markets period 2015 2020, orientation to 2030.
International trade relations development differs depending on each East
Asian partner within the established relations and the results obtained from
commercial activities between Vietnam and each partner. Therefore, in addition to
the general points as mentioned in section 2.2.1 and 2.2.2, the development of

trade relations between Vietnam and East Asian countries is further discussed in
section 2.2.3 (ASEAN ), section 2.2.4 (Korea), section 2.2.5 (Japan), section 2.2.6
(China). In addition to examining 2 points, that creating frameworks for the
establishment of trade relationships and that employing tools/measures for the
development of trade relationships, the thesis also analyzes the results of trade
relation development through the indicators of the scale of trade, trends and trade
structure.
2.3. GENERAL EVALUATION OF THE TRADE RELATIONS
DEVELOPMENT BETWEEN VIETNAM AND EAST ASIA FROM 2007 UP TO
NOW
2.3.1. Achievements in developing trade relations between Vietnam and East
Asian countries
Developing international trade relation by width: Firstly, so far, Vietnam


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has established trade relation with all countries in the region. These trade relations
are established both bilaterally and multi-laterally. Secondly, Vietnam has also
been actively participating in regional cooperation forums and initiatives. Thirdly,
through the signing of bilateral and multilateral trade agreements, Vietnam has
created appropriate mechanism to support the development of international trade
relation. Fourthly, the scale of trade between Vietnam and East Asian countries
has the tendency to increase rapidly.
Developing international trade relations by depth: Firstly, in general, the
development of trade relation between Vietnam and East Asian countries is
promoted in many forms, from low to high levels. Secondly, in establishing the
cooperative framework, Vietnam has negotiated and promoted the signing of FTAs
with more and more cooperation areas. Thirdly, Vietnam 's corporate governance
with East Asia is considered the most developed compared to other regions.

Vietnamese trade agreements signed with Japan, South Korea and China are
considered very open agreements. Fourthly, the development of international trade
relation contributes to creating and developing a variety of economic relations and
cultural exchanges. Fifthly, the structure of Vietnam's import and export
commodities with East Asia has changed in a diversified direction but with each
specific market there is a difference.
Justification of the achieved outcomes
Vietnam: the geographical proximity and strongly-developed political and
economic relations; the adjustment in foreign policy; after joining WTO, the
government has made great efforts in transparency and offering solutions to take
advantage of integration commitments; Vietnam’s market expansion with regional
countries is an opportunity for domestic enterprises to have a better chance to
participate in the regional production network, thereby exporting products can be
produced and exported with a variety of types and quality...
East Asian countries: the diversified cooperation mechanisms promoted
under the signed FTA framework and regional multilateral forums; the increase in
number and quality of regional cooperation agreements have also brought Vietnam
many opportunities to develop and enhance the established relationships with East
Asian partners; changes in foreign policy of regional countries when focusing on
East Asia.
2.3.2. Short-comings and limitations of the development of trade relations
between Vietnam and East Asia countries


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Short-comings and limitations: Firstly, in the development of trade relation,
Vietnam has created a variety in relations with all countries in East Asia. However,
the regional trade relations are currently focused on only 3 Northeast Asian
countries and some countries in ASEAN6. Secondly, the trade relation between

Vietnam and East Asia still focuses mainly on bilateral relations. Thirdly, the
cooperation has only developed in width but has not really gone into depth.
Fourthly, Vietnam does not seem to have fully exploited its strengths. Fifthly, the
index of trade density and market share shows the relatively small proportion of
goods flow from Vietnam exported to or imported from these markets. Sixthly, the
prevailing situation with Vietnam is an increase in trade deficit from East Asia.
Reasons for short-comings and limitations:
Vietnam: Vietnam’s integration inside the region is very slow, even very
weak; inadequacies in policy mechanisms and implementation and lack of specific
policies for each major and important partner in East Asia; the inadequacies in
some sectors in order to be more effective in integration and development of trade
relation; the cooperation of Vietnam with the relevant bodies of the partner
countries in solving problems arising from the practice of trade relations is still
slow; the import-export policy is too focused on rapid and development;
Vietnam’s trade deficit with East Asian countries mainly derives from the structure
of import and export goods and the similarity of this trade structure when
competing with other countries in the area; competitiveness of Vietnam’s products
and businesses are still low.
East Asia: the East Asia region has many contradictions and is prone to
conflict; the foreign policies of some of the major regional countries are constantly
changing and the "conservatives" of nationalism in these countries in the context
of competition in order to increase influence and leadership in the region; three
markets with strong trade relations with Vietnam (China, Japan and Korea) tend to
adjust different trade policies...
Chapter 3. VIEWPOINTS, ORIENTATIONS AND SOME SOLUTIONS TO
DEVELOP TRADE RELATIONS BETWEEN VIETNAM AND EAST
ASIAN COUNTRIES, VISION TO 2030
3.1. CONTEXTS THAT AFFECT THE DEVELOPMENT OF TRADE
RELATIONS BETWEEN VIETNAM AND THE EAST ASIAN COUNTRIES,
VISION TO 2030

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3.1.1. The international and regional context affecting the development of
trade relations between Vietnam and East Asian countries by 2030
International context: The strong development of science and technology
has been and will be affecting all countries in the world, including Vietnam; global
issues, especially the increasingly unpredictable impact of global climate change;
globalization and international economic integration are still the main impact on
the world economic development, although the recent resistance against it is
increasing; Political and military instability is still complicated in some areas,
adversely affecting the global as well as national socio-economic development;
Regional context: Change in policies of major countries towards the region;
new features of international trade between East Asian countries; Asia-Pacific
cooperation and cooperation trend and negotiation and signing of new generation
FTAs in the region;
3.1.2. Domestic context affecting the development of trade relation between
Vietnam and East Asia by 2030
The domestic context is recognized from the reality of Vietnam's renovation
process over the past time as well as the international integration process of
Vietnam since 2015. From this context, the thesis points out some opportunities
and the main challenge Vietnam needs to address in the development of trade
relation with East Asian countries by 2030.
3.2. VIEWPOINTS AND ORIENTATIONS FOR DEVELOPING TRADE
RELATIONS BETWEEN VIETNAM AND THE EAST ASIAN COUNTRIES
TO 2030
The viewpoint and orientation for developing Vietnam’s trade relations with
East Asia to 2030 stated in the thesis is based on the Party’s guidelines for
international integration and some specific guiding documents in each period.

Some guideline documents include: Resolution No. 07/NQ-TW on “International
Economic Integration”, Resolution No. 08/NQ-TW on “Some major guidelines
and policies for the economy fast and sustainable development when Vietnam is a
member of the World Trade Organization “, Resolution No. 22/NQ-TW on”
International Integration “, Decision No. 40/QD-TTg on ”General Strategy
International Integration to 2020, vision to 2030 ”.
From this point of view, the orientation and objectives of developing


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Vietnam’s trade relations with East Asia need to be in line with a number of
guiding documents of the State such as Decision No. 2471/QD-TTg dated
December 28, 2011 approving “Import and Export Strategy of Goods in the period
of 2011-2020, Orientation to 2030”, Decision No. 1467/QD-TTg dated August 24,
2011 approving “Scheme of Developing Regional Markets period 2015 - 2020,
orientation to 2030 ”. In addition, the development of trade relations between
Vietnam and East Asia needs to be consistent with the characteristics and situation
in each regional market. The development orientation of trade relations between
Vietnam and East Asia in the coming time is to diversify, improve efficiency and
bring trade relations into reality, enhance Vietnam’s position and serve country
development goals.
3.3. SOME SOLUTIONS TO DEVELOP TRADE RELATIONS BETWEEN
VIETNAM AND EAST ASIAN COUNTRIES, VISION TO 2030
3.3.1. General solutions
Regarding the framework for developing trade relations between Vietnam East Asia: This is a group of macro solutions with the role and responsibility of
the state in creating the framework and foundation for developing trade relations
in the context stated in 3.1. Recommendations:
+ Develop comprehensive cooperation framework and go deep with East
Asian countries;

+ Promote negotiations with countries in East Asia;
+ Enhance the two-way governmental exchange of information, well handle
trade barriers and problems arising in trade relations with East Asia.
The solution group to promote and develop trade relations between Vietnam
and East Asia: This group of solutions relates to the improvement of mechanisms
and policies to facilitate the commercial activities of Vietnam with East Asian
countries as well as solve the problems posed from trade relation development
practices. In this group of solutions, the state needs to:
+ Enhance the effectiveness of Vietnam - East Asia cooperation;
+ Developing human resources to serve the integration needs in general and
developing trade relations with East Asian countries;
+ Effectively implement international integration policies in developing
trade relations with East Asian countries;


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+ Improve Vietnam’s trade deficit with East Asian countries; Improve the
competitiveness of Vietnamese goods and businesses;
+ Good implementation of trade promotion and promotion of the role of
Vietnamese representative missions abroad;
+ Establish support mechanisms for domestic trade entities in implementing
commitments ...
3.3.2. Solutions with each East Asia partners
The thesis offers solutions to the following partners in East Asia: China,
Japan, Korea and ASEAN
3.3.3. Some conditional solutions
In order to implement the above solutions, the thesis makes a number of
conditional recommendations to the government and line ministries. Specifically:
continuing breakthroughs in innovation of integration thinking; raising social

awareness about the integration and development of trade relations in the new
context; promoting reform of the business environment to create a favorable
environment for entities in the economy; strengthening the unity of awareness and
action, leadership and direction of government and related ministries in
developing trade relations in general and developing trade relations with East
Asian countries in particular; strengthening assignment, decentralization and
coordination in management, associated with strengthening the responsibilities of
departments, associated with regular inspection work...


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CONCLUSION
In the context of strong globalization and regionalization, most countries in
the world choose to integrate and develop trade relations. In the world and in
Vietnam, there have been many studies on trade relations and established
theoretical foundation for developing trade relations between countries. However,
there has not been much research on developing Vietnam trade relations with East
Asian countries and developing a theoretical framework for developing trade
relations for a developing country with regional partners, on an economic
management approach. This is the research gap that the thesis defines and
implements.
The thesis contributes to systematizing and perfecting the theoretical basis
for developing trade relations between countries. On the basis of the established
theoretical framework, the thesis studies the situation of developing trade relations
between Vietnam and East Asian countries from 2007 up to now, and indicates
that the results of developing trade relations between Vietnam and East Asia are
reflected in the promotion of relations in various forms and levels, establishing the
framework for developing trade relations and creating mechanisms to support and
promote the development of trade relations, increasing trade scale, and developing

various economic relations, cultural exchanges, FDI etc... In addition, the thesis
also points out the limitations in organizing the implementation of policies,
coordinating to resolve disagreements as well as limitations from commercial
practices. To solve these shortcomings, the thesis proposes some solutions to
develop Vietnam - East Asia trade relations till 2030: building a comprehensive
framework of cooperation and deepening the relationship with East Asia countries,
promoting negotiations with East Asian countries, conducting two-way
communication at government level, developing human resources, addressing
trade deficit, collaborating to promote trade effectively, etc.
Although achieving some of the successes mentioned above, there still has
some limitations unsolved with limited research conditions in the thesis. However,
the thesis is an independent study and has a certain reference value for students,
researchers, managers related to the field of international trade and international
trade relations %.


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PUBLICATIONS BY RESEARCHER/AUTHOR
RELATED TO THE THESIS
1. Duong Hoang Anh (2012), ‘Export of Vietnamese Goods to Japan after 3
years of Implementing VJEPA’, Economy & Forecast Review, No. 21/2012
(533), p.24-26.
2. Duong Hoang Anh (2012), ‘Trade of Vietnamese Seafood Products to Japan
Market After 3 Years of Implementing VJEPA’, Journal of Economic
Studies, No. 414 - November 2012, p.38-45.
3. Duong Hoang Anh, Pham Thi Du (2013), “Vietnam - Japan Bilateral Trade
Relations for the period of 2003-2013”, 3 rd International Conference
“International Integration: Achievements and Problems Raised”,
Thuongmai University, p.626-640

4. Duong Hoang Anh, Pham Thi Du (2013), “Integration of Logistics Services
in ASEAN - Issues Raised with Vietnam”, 3 rd International Conference
“International Integration: Achievements and Problems Raised”,
Thuongmai University, p.196-208
5. Duong Hoang Anh (2014), ‘Development of Vietnam-Korea Trade
Partnership”, Economy & Forecast Review, No. 14, July 2014, p.59-61.
6. Duong Hoang Anh, Duong Thuy Duong (2015), ‘Development of VietnamChina Border Trade’, International Conference on “Building a Maritime
Silk Road and Cross-Border Cooperation China-Vietnam” in Longzhou,
China, p.154-178.
7. Duong Hoang Anh, Duong Thuy Duong (2016), ‘落落 落落 落落 落落 落落 落落 落落 落 落 落 落 落 落 落 落 落 落 落 ’ , International Conference “Managing Dynamic
Changes on Asian Business and Economic”, Chiayi, Taiwan.
8. Duong Hoang Anh (2017), ‘Vietnam’s Seafood Exports to Republic of
Korea After More Than One Year of Implementation Vietnam - Korea Free
Trade Agreement (VKFTA)’, The 3rd International Conference on Asia
Trade, Laos.
9. Ha Van Su (chief editor), Duong Hoang Anh, Nguyen Thi Thu Hien (2019),
Comprehensive and Progressive Trans-Pacific Partnership Agreement and
the Ability to Transfer Foreign Direct Investment into Vietnam, Reference
book, National Economics University Publishing House .