Deputy Prime Minister Nguyen Xuan Phuc on June 12 assured National Assembly deputies that measures to lessen the domestic economy’s reliance on China are being prepared following the neighboring country’s deployment of a huge oil rig in Vietnam’s waters.

Speaking at a Questions & Answers session on June 12, Phuc said the Government has urged ministries, agencies and provincial authorities to anticipate economic scenarios to respond to China’s aggression in both short and long terms.

Such agencies have been told to closely monitor the situation and take appropriate measures in areas related to China such as import-export, investment, tourism, and projects with the involvement of Chinese contractors, he said.

“Under the current circumstance, we must further bolster restructuring, enhance competitiveness, and step up international economic integration associated with the diversification of markets and investment sources to avoid relying heavily on a single market,” the deputy prime minister said.

Phuc said China’s illegal placement of Haiyang Shiyou oil rig in Vietnam’s exclusive economic zone and continental shelf has affected the economy but not substantially.

“The deployment in early May of the oil rig has caused slight falls in exports, foreign investment, tourism, and aviation. The markets of gold, foreign exchange and equity also fluctuated in the first few days, mainly due to psychological factors,” he said.

In the coming time, the negative impacts will continue in different areas “depending on the relationship between Vietnam and China as well as our foreign policy,” he said.

Vietnam’s economic relations with China are equal and mutually beneficial, so the nation aims to boost economic ties with China, both bilaterally and multilaterally.

In answering a question by NA Deputy Tran Du Lich over what breakthrough measures would be taken for Vietnam to become independent of China, Phuc said Vietnam would continue to improve the investment environment, change the growth model, expand markets, including markets for input materials and outlets.

A report by the Ministry of Planning and Investment given at the ongoing NA sitting outlined the economic cooperation between Vietnam and China.

Apart from strong two-way trade of around US$50 billion a year in disfavor of Vietnam, China has offered little official development assistance for Vietnam over the years.

In 2001, China offered US$44.2 million ODA, which rose to US$66 million in 2003, some US$71 million a year later, and US$200 million in 2005. In total, China has pledged US$381 million for Vietnam.

Regarding foreign direct investment, China has also pledged US$7.8 billion in 1,029 projects.

China has won the biggest number of engineering-procurement-construction (EPC) contracts in Vietnam. Chinese contractors have won 15 of 20 EPC contracts in the electricity sector, and other bauxite mining and coal exploitation projects in Vietnam.