Mr Triet noted that the Asia and Pacific region has the largest number of newly emerging and successful economies in the world, contributing greatly to regional and global growth. Since the 1980s, the world has witnessed a dramatic increase in the foreign direct investment (FDI) flows until the global financial turmoil began in late 2008. However, FDI is forecast to bounce back again in 2010 and increase gradually in the following years. He said economic groups and investors can clearly see these opportunities worldwide and in emerging economies in particular.

Besides attracting FDI sources, the crux of the matter is how these economies use them effectively, said Mr Triet, pointing out three lessons Vietnam has learnt in the past years to achieve the goal. First of all, he underlined the need to improve the investment environment, boost reform efforts and develop domestic businesses.

He said effectively attracting foreign investment plays an important role in Vietnam’s socio-economic development strategy. To this end, Vietnam has paid special attention to completing its legal system, accelerating administrative reform, creating an equal and competitive investment and business environment, developing infrastructure and improving the quality of human resources. The country has also actively integrated into the world economy, creating a favourable environment for attracting foreign investment.

Vietnam has opened its doors to foreign investors not only in agricultural and industrial production but also services and infrastructure development, he said. The fact is that efforts to create an equal business and investment environment, reduce transaction fees and maintain socio-political stability are more effective than financial stimulus measures such as tax reductions and exemptions.

The second lesson is to combine policies to overcome short-term difficulties with sustainable development policies for the longer term. Vietnam has several times experienced the macro-economic instability and adverse impact from economic and trade shocks outside its borders.

In the face of the current global financial and economic turmoil, Vietnam has adopted measures to stabilise its macro economy and then introduced an economic stimulus package to prevent an economic slowdown and ensure social welfare. It has also continued with its legal, administrative and business reform programmes, especially in the financial, land and labour sectors. Part of the economic stimulus package has been used to develop infrastructure, train human resources and stimulate investment to create the prerequisite for higher economic growth in the future.

Last but not least, Mr Triet said it is necessary to take measures to reduce the possible risks from a sharp increase in foreign investment.

After joining the WTO in 2007, Vietnam has attracted a great deal of foreign direct and indirect investments. The country has dealt with the rapid development of its stock market, the bubbling real estate market, the relationship between interest rates and capital circulation, and runaway inflation, which caused numerous difficulties for both businesses and the economy.

To resolve the problem, Vietnam applied a tight monetary policy and cut down on public spending to rein in galloping inflation and stabilise the macro economy.

The lesson here is that we need to deal with foreign investment flows in a tactful and flexible way so that we can attract capital for national development and at the same time prevent unwanted risks to the macro economy, said Mr Triet.

Regarding regional issues, Mr Triet noted that the world has been experiencing the most serious economic crisis since in the Great Depression in 1929-1933. In this context, he said it is essential to strengthen regional and inter-regional cooperation and integration in which APEC is a key entity. He called on the business communities to share responsibility with their governments and people to iron out snags and rebuild their economies during the post-crisis period.

VietNamNet/VOV