Phoenix-like Vietnam
FORMER Senator Eddie “Kuya Eddie” Ilarde, the first president of the Philippine-Vietnam Friendship Association, returned to Manila from Hanoi, impressed by what he saw.
“Vietnam has emerged as one of the fastest-growing economies in Southeast Asia. It has an open Foreign Investment Law, offering up to 100% foreign ownership,” he said in an interview with Radio Tapat.
“Open policies of Vietnam have brought about low trade barriers, fast custom clearances, and simple administrative procedures, thus, shaping a dynamic business environment for Vietnam nowadays.”
As of June, 2014, more than 16,300 FDI projects were active in Vietnam, pulling in US$238 billion. Manufacturers like Samsung Electronics Co., LG Electronics, Inc., Nokia Oyj, and Intel Corp., have set up operations in Vietnam, another option after China.
The Philippines ranks 17th among the countries that invested in Vietnam, and Ilarde said wants to bring more Filipino businessmen to Vietnam and expects their entrepreneurs to do business here soon.
Asked about his impressions of Vietnam, Ilarde said that countries ravaged by war — like Vietnam — progressed after experiencing extreme difficulties.
“In 1986, Vietnam launched its reform policy which apparently bears fruit. After expanding 5.42% in 2013, Vietnam’s economy has been expanding faster this year with third quarter’s annual growth of 6.19%. The consumer price index in September rose by 2.25% from December, 2013, lowest rate in a decade. The interest rate is 2% lower than 2013, credit growth increased by 7.26%, and expected to be between 12-14% this year.”
He said Vietnam’s foreign currency reserves are at a record level of US$35 billion. Balance of payment is on the plus side.
“Poverty rate in Vietnam has been substantially reduced to around 10% in the last three years and the Philippines and the Filipinos should learn from Vietnam’s industriousness and frugality.”
Has Vietnam overtaken the Philippines in terms of growth?
Ilarde said: “In no time at all, we may be sorry, we will be left behind if we cannot stamp out massive corruption in government and get our act together. It seems that we have much to learn from our neighbor Vietnam.