Da Nang (VNA)ဣ - Prime Minister Nguyen Xuan Phuc delivered a speech at the Vietnam Business Summit which was held in the central city of Da Nang on November 7. Following is the full text of the speech.

Vietnam Business Summit 2017
Vietnam: Integration, Dynamic Reform and Comprehensive Development

MadamVictoria Kwakwa, World Bank's VicePresident for EastAsia – Pacific,
Mr. Philipp Rösler, Managing Director, WorldEconomic Forum,
Excellencies Ambassadors, Heads of diplomatic missionsand international organisations in Vietnam,
🗹 Vietnamese and foreign experts, investors andbusinessmen,

Onbehalf of the Government of Vietnam, I would like to convey warmest welcome toall distinguished delegates and guests attending the Vietnam Business Summit onthe occasion of the 2017 APEC Economic Leaders’ Week. May I extend my warmestgreetings to all distinguished guests and delegations, representatives fromorganisations and enterprises, experts and investors Vietnamese and internationalalike. Alongwith many APEC events and activities, the Vietnam Business Summit is held in DaNang and the ancient city of Hoi An - avibrant trading post dating back to the early 17th century thatreceived merchant fleets from Japan, China, India and Europe, laying thefoundation for the development of trade relations for the past many hundredyears. Today Vietnam is still working hard to improve ourselves, to continue tobe a potential and “reliable trade partner” to the international businesscommunities and other countries. According to AmCham Singapore in September2017, 56 percent of businesses surveyed has considered Vietnam their best tradepartner. Areport by the World Bank (WB) has pointed out that Vietnam's economic transformationduring the last 30 years is deeply significant. With the implementation ofprofound economic reforms that resulted in high GDP growth of average 7 percent/peryear, the people's income has accordingly increased. In 2017, GDP growth is expectedto reach 6.7 percent and we have set the target of 6.5 to 7 percent between2016 and 2020. The average income per capita in Vietnam has increased to 2,300USD (or 6,800 USD on a purchasing power parity basis).

Accordingto WB's “Report 2035” released in 2016, at present the middle class accountsfor about 10 percent of Vietnam's population, and is expected to increase to 50percent by 2035. This has helped boost the demand of the economy and create manybetter jobs. Not only in the domestic market, Vietnam has also step by steppartaken in the value chains and production networks within the APEC region andthe world. Rapidly growing income and the expanding middle class have changedin the consumption pattern of the economy, thus opening new opportunities for investorsand move ahead with the new trend.
൩ Vietnamhas shown its dynamism by its active international integration and strongsupport for global free trade. We have signed and joined 12 free tradeagreements (FTAs) and are negotiating an additional four, including those with18 partners who are APEC economies.

Tenyears after our accession to WTO, Vietnam's export-import turnover in 2017 hasquadrupled to more than 400 billion USD, equivalent to 170 percent of GDP. Weare making effort to substantially improve the business and investmentenvironment. At present, there are more than 24,200 FDI projects hailing from120 countries and territories in operation in Vietnam, with a total registeredcapital exceeding 310 billion USD or 155 percent of GDP . Among them, FDIcapital from APEC economies alone amounts to 250 billion USD, accounting fornearly 80 percent total FDI capital into Vietnam over the past three decades.Many leading economic groups from APEC economies have selected Vietnam todevelop their regional production hubs for their global value chain. Accordingto prestigious international organizations as well as many entrepreneurs andinvestors, the competitiveness of and the business environment in Vietnam havebeen substantially improved. The World Economic Forum (WEF)’s ranked Vietnam'sGlobal Competitive Index (GCI 2017-2018) 55th out of 137 countries,jumping 20 ranks over five years. Vietnam’s market size ranks 31st out of 137. According to the WB in a report published 31 October 2017, Vietnam's2018 Doing Business ranking is 68th out of 190 countries, anincrease of 14 ranks compared to the previous year (ASEAN 5 Group). The WorldIntellectual Property Organisation (WIPO) published their 2017 Global InnovationIndex report in May 2017, which showed that Vietnam advanced to rank 47th among 127 countries and economies, a 12-rank jump. Ladies and Gentlemen, Vietnamtoday has a population of almost 95 million, a young population structure withmore than 60 percent under 35 and an income rapidly rising, especially amongthe burgeoning middle class. On average between 2007 and 2016, the finalconsumption of the household sector accounts for 67.3 percent of GDP andincreased by 16 percent per year. Domestic consumption has become an importantdriver for Vietnamese economic growth in addition to the export sector. Thisgrowing income has made Vietnam ever more attractive to consumer goodsproducers, especially well-known foreign brands. Apple, Samsung, LG and Sonysmartphones are quite popular in Vietnam, while such brands as China's Huaweiand Oppo, with comparable design and functions, are also selected by the youths. Vietnamhas 52 million internet users, accounting for 54 percent of the population,ranking fifth in the Asia-Pacific in terms of internet access after China,India, Japan and Indonesia. With 55 percent of its people having smartphones, itis projected that by 2020, Vietnam will be among the leading countries in theregion in terms of mobile users. This is both an important foundation and amajor opportunity for potential investors to market their products and servicesto the vast potential customer base in Vietnam. Ladies and Gentlemen, Theresults that Vietnam has achieved until now is an important encouragement forus to remain confident and steadfast to grow stronger in the years to come. Weare determined to build an action-oriented, enabling government in service ofthe people and businesses. We will accelerate international integration. Wewill continue to pay due attention to macro-economic stability, institutionaland legal policy reform, sustainable development, job creation and incomeraising for the people. Inthe coming years, we will focus on the following solutions: First, we will continue to improvethe legal, institutional and policy frameworks, promote the rule of law, encourageprivate sector’s development, strengthen state governance capacity, maintainmacroeconomic stability towards sustainable growth, ensure social progress, andhelp the low-income group catch up with middle-income and better-off groups.The entrepreneurial spirit to enrich oneself is key to keep the dynamism of theactive circle between the growth of the middle class and economic growth. Wewill focus on investing into infrastructure connecting the urban areas to thecountryside, mountainous regions and remote areas. Vietnam pays great attentionto the development of the healthcare and education system, reduce the incomegap while improving the social welfare network to protect disadvantaged andvulnerable groups from negative shocks. Second, foster the start-upand innovation economy through the commitment to assist and enable theincubation and realization of start-up ideas. Vietnam pledges to protectinnovative ideas and new inventions in the start-up economy and will ensureintellectual property rights within the framework of the Intellectual PropertyLaw as well as within the FTAs that Vietnam is party to. The dynamism of theeconomy, an open internet policy and the enabling conditions for doing businessare creating major opportunities for start-up entrepreneurs in Vietnam. We wishto call on investors to participate, and hope there will be more start-ups andventure funds operating in Vietnam to further encourage the strong start-upspirit  in our country. Third, carry out tax reformstowards greater competitiveness for the economy, with an aim for the OECD'shigh standards for transparency, fairness and efficiency. Presently Vietnam'scorporate income tax is at 20 percent and will be reduced to 15 to 17 percentaccording to the upcoming tax reform timetable support the business community.Apart from the competitive tax rate, Vietnam also puts in place many tax incentivesfor investors in priority areas such as high-tech industries, supportingindustries, high-tech agri-business and labour-intensive industries. Ladiesand Gentlemen, In the vision for the next decade, Vietnamaims to become a dynamic, innovation-based economy. The Vietnam Business Summittoday has 6 thematic sessions on agriculture, finance, education and health,infrastructure, special economic zones, start-ups, and innovation. These willgenerate multiple opportunities for cooperation and investment in Vietnam, andwe shall work together towards the theme of APEC 2017 - “Creating new dynamism, fostering a shared future” for theAsia-Pacific, for peace, stability, integration, dynamic development andprosperity. Maythe 2017 Vietnam Business Summit be a great success!

Thank you./.