Asian economic picture shows potentials and challenges

Update: 26-11-2018 | 12:15:59

According to experts, based on the cycle of development, usually a slower economy will start the next cycle of growth. Among the emerging markets in the world, Asia has a lot of advantages thanks to stable fundamentals, including Vietnam.

Production line of a company in the province. Photo: Phuong Le

Notable trends

At meetings in the framework of the Forum for Asian Economic Cooperation (Horasis) 2018, business leaders discussed the developments and trends in Asian markets. According to experts, among the emerging markets in the world, Asia is having many advantages thanks to stable fundamentals. Many countries in Asia have become net exporters, but they are still the largest recipient of foreign direct investment. Economic power has allowed Asian countries to expand their activities and influence in world affairs, leading to a gradual shift of power from the West to the East.

Today, Asia not only becomes the world's largest producer, but also the largest market in the world; Hong Kong, Tokyo, Singapore, Shanghai and Mumbai are becoming international financial centers. Experts emphasize the shift of cash flow in Asia whereby developed nations produce profits, and also sells goods. Thus, the general development of production will promote consumer economy, promote the national economy in developed countries.

The most fundamental challenge due to the rise of Asia is not the power and influence that is growing, but the uncertainty surrounding the transition. In addition, rapid economic growth is not only a rise in GDP in Asia but also brings about socio-political changes that Asian countries do not yet have a good approach to deal with. As can be seen, the process of modernization in Asia has made Asia more and more an independent economy and more civilized society; Asia is increasingly urbanized, people are no longer bound and able to pursue a better life.

However, a growing number of issues and risks threaten the development of Asian countries. Most prominent are the ongoing trade disputes between China and the United States. However, this trade war is still within the reach of investors. When the US Department of Commerce decides to impose heavy tariffs on Chinese commodities in the US market, it will cause certain difficulties for Asian countries, whereby China will intervene in monetary policy. to protect exports, thereby causing certain difficulties for Asia.

In addition, experts say that the rise of Asia, in addition to the fundamental differences between Asian countries, will entail a series of issues such as economic disparities in society, education, corruption, hunger, poverty, ecological problems, ecosystems decline. At present, the problems of poverty, the gap between the rich and the poor, the problem of energy and ecosystems are worsening in the countries that have taken place; The problems of inflation and corruption also exist in developing countries in Asia. The important issue now is how can Asia-Pacific countries formulate policies that focus on that issue; With the slowdown in economic growth, progress in poverty reduction is slowing, increasing inequality and the prospect for stable employment are declining. At the same time, rapid urbanization and rising middle class are posing socio-economic and environmental challenges to Asian nations. These problems can affect the development of the region in the coming decade will make it difficult for countries in the region to pursue their sustainable development agenda.

Opportunities and challenges of Vietnam

At the forum, experts proposed to overcome the above challenges, ensuring the success of the Asian sustainable development agenda until 2030, countries need to use the combination of economic stimulus measures, including fiscal policy, social protection measures, strengthening domestic resources, etc. The impact of these measures will not only support domestic demand, but also contribute to the creation of a foundation. Strong for the future growth of Asian nations. It is important that countries focus more on the labor quality, knowledge, skills and health goals of the workforce; Innovation in the field of trade and investment, infrastructure, energy and information technology ... Countries with high transparency, potential human resources, resources will be a country that attracts many homes. invest.

Appreciating the development of Vietnam in the development process, said John West, Managing Director of Sydney Company. "In the past 20 years, I have witnessed a dramatic change in Vietnam, the most striking feature is the transport infrastructure, economy and education. I think that Vietnam will develop further in the future; Vietnam will achieve better results towards sustainable development. In the coming time, I think that Vietnam should focus on further transparency of governance policies, including corporate governance and governance, in order to attract investment and help investors to benefit. Better in Vietnam to maximize investment efficiency. "

According to speakers at the forum, when the US-China trade tensions posed many risks to Vietnam's economic growth, it is difficult to quantify its impact on the Vietnamese economy. Therefore, Vietnam should closely monitor the development of this trade war to take effective response measures. As trade tensions rise, it is likely that some Chinese manufacturers will relocate their production facilities to Vietnam. Therefore, the government should have a policy to protect the business.

In this regard, Philip Bowring, Asia researcher for Asia Sentinel magazine (Hong Kong, China), said that difficulties faced by Vietnamese businesses during the US-China trade war have escalated in time. Of course, there are, but the business is not too pessimistic. Vietnam has benefited from the free trade agreements that Vietnam has entered into and has entered into force. The problem is that the Government and domestic enterprises need to have a strategic vision, to increase cooperation and development in many areas, especially e-commerce, in order to gradually reduce the border gap and develop sustainably.

Reported by Tieu My – Translated by Vi Bao

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Asian economic picture shows potentials and challenges

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