VietNamNet Bridge - Territorial disputes in any degree will also affect the economy, so Vietnam will have appropriate response measures, says the Chair of the National Assembly’s Finance-Budget Committee, Mr. Phung Quoc Hien, in an interview with VnExpress.

NA deputy Phung Quoc Hien.

Q: How will Vietnam's economy be affected if tensions in the East Sea continue to escalate?

A: First of all, I think we have to look at the incident in a very complete way. China recently brought back its workers and experts in a number of projects in Vietnam. So the effect is obvious, but we cannot assess the overall level of impact yet. When two parties have territorial disputes, it leads to economic problems. That is the rule of disputes between the countries. So the economy will be affected somehow.

Q: How should Vietnam set backup scripts to protect the economy in the worst situation?

A: The government will certainly have specific solutions. But it is most important that in the long run we build an independent economy. In the context of integration and participation in global value chains, of course we cannot do everything, but can only take a certain part of it. If there are problems with any link in that value chain, the entire chain is affected. If Vietnam is affected, China and other countries will be affected.

The State will surely take immediate measures but every business should have a specific solution for itself. After the recent disturbances, we have handled the extremists. We have taken some measures but they are only enough to stabilize production. In the long term, we must also have solutions.

Q: For foreign investors, what should Vietnam do to avoid the risk of them getting cold feet and leaving Vietnam to seek alternate locations?

A: Actually, no investor has suggested withdrawing from Vietnam but it is true that they have worries. We must create confidence among investors right now. What assurances can instill that confidence? That Vietnam will always maintain peace in the region, and not resort to force. The second is that Vietnam will ensure security for investors as well as foreign citizens in Vietnam. That is the most desirable and necessary environment for foreigners.

Q: In the current economic and investment ties between Vietnam and China, what worries you most?

A: The most worrying thing is that the cooperation and relations between the two sides is not good, meaning not normal. The important thing now is the relationships have to return to normal, otherwise both economies will suffer.

Q: It is very different in China’s words and actions, therefore Vietnam should be very careful, especially in the economic relationship. What do you think about this?

A: I have to make it clear that in every step, we must be cautious. So far we have remained cautious in all matters and in economic cooperation as well, not only with China. In business, the market is also the battlefield. If it is a battlefield, we must take into account all the solutions.

Q: Has the NA considered adjusting the growth objectives and budget spending this year due to the tensions in the East Sea, as well as after the recent riots in Binh Duong?

A: We must continue to keep track of the situation. It is not possible to give an assessment at all at this moment. Of course there will be difficulty but perhaps it is not to the extent that we have to change anything about the goals and directions. Based on the specific situation, the NA will make a decision. The NA may adjust the goals of growth and in economic management, that is normal.

S. Tung