Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : HO CHI MINH CITY, VIETNAM
Tarikh/Date : 09/03/96
Tajuk/Title : THE JOINT BUSINESS LUNCHEON MEETING
Let me first of all say how happy I am to be
here today and to be given this opportunity to
address this gathering of prominent members of the
Malaysian and Vietnamese business community. This
is a useful forum to discuss and exchange views of
common interest that can contribute towards
strengthening trade and economic relations between
Vietnam and Malaysia.
2. With the promulgation of the `Doi Moi' policy
by Vietnam in 1988, bilateral relations between our
two countries have continuously moved towards a
higher plane. This is reinforced by the frequent
exchanges of visits at the highest levels between
our two countries. Such visits have not been
confined to the government alone but also
complemented by the business sectors of both
countries. This signifies, to a large extent, the
importance Malaysia places on bilateral relations
with Vietnam. This visit, coming after Vietnam's
admission to ASEAN further consolidates the already
established close economic ties between our two
countries within the context of ASEAN economic
cooperation.
3. As we move towards the year 2000, East Asia of
which we are an integral part, is set to become the
dominant region of the world economically,
politically and culturally. We are continuously
discovering the tremendous economic potential that
lies within Asia. East Asian export-led growth is
now fast becoming sustained by demand from within
the region. The World Bank estimates that between
1992 and 2000,45 percent of all new purchasing power
created worldwide will be in this part of the world.
Vietnam and Malaysia which are part of this dynamic
East Asian region must work together to ensure that
prosperity does notpass us by. New ways of enhancing
bilateral economic cooperation must be explored so
that growth of this region is shared.
4. It is refreshing to note that in East Asia
there has been a tremendous increase in intra-
regional trade and investment flows leading to
greater integration of markets. The establishment
of AFTA is but a formalisation of the market-driven
economic integration process aimed at accelerating
trade and investment among South East Asian
countries. Although Vietnam and Malaysia may be at
different stages of development, this need not stand
in the way of finding complementary areas to trade
and investment, resulting in optimal utilisation of
resources within this region of 400 million
consumers. As a member of ASEAN, Malaysia is fully
committed to sharing it's experiences with Vietnam.
5. As a member of the community of South
Countries, it is also our view that developing
countries like Vietnam and Malaysia which share
common aspirations of self reliance should work
together. Malaysia places great importance on
developing trade and economic cooperation between
countries of the South. Since it's inception,
Malaysia through the G-15, has initiated several
projects to improve South-South economic
cooperation. In line with the spirit of South-South
Cooperation, the government of Malaysia has
encouraged Malaysian companies to invest and
contribute to capacity enhancement of the South
Countries including that of Vietnam. South-South
cooperation has acquired greater significance in the
light of the Uruguay Round market- opening process.
It is therefore imperative that we who are from the
countries of the South do more business among
ourselves.
6. Trade has acted as an engine of growth in most
countries in East Asia. Malaysia advocates
bilateral trade relations with countries in this
region, with the hope of complementing our resource
endowments and competitive advantages. Bilateral
trade between Vietnam and Malaysia has been growing
rapidly since the opening up of trade. This proves
that there exist many complementarities among our
two economies for trade. The value of bilateral
trade between Vietnam and Malaysia rose from US$55
million in 1990 to almost US$272 million in 1994.
The value of trade in 1995 is expected to have
exceeded US$350 million. During this period trade
between our two countries grew faster at 46 percent
as compared with Malaysia's total trade which grew
at 19.5 percent. I would like to urge the
Vietnamese and Malaysian business community to work
together to increase and to diversify the range of
products traded between our two countries.
7. Under AFTA Vietnam has offered a first package
of 1,638 items for tariff reductions, which includes
machinery, mechanical appliances, paper and paper
boards, chemicals, precision medical instruments,
plastics, iron and steel. Tariff reductions on
these items will further facilitate business and
joint venture opportunities between Vietnam and
Malaysia.
8. On Malaysian investment in Vietnam, it is
estimated that by the end of 1995 Malaysian
entrepreneurs would have invested a total of US$860
million in 44 projects in the oil industry,
infrastructure development, food processing, tourism
and property development. It is also noteworthy
that Malaysia today ranked second among the Asean
countries and the seventh in terms of overall
foreign investment in Vietnam. Malaysia will
continue to encourage its private sector to invest
in Vietnam wherever the cost of doing business is
more competitive.
9. I urge the Malaysian business community doing
business in Vietnam to be fully involved in the
economic development and reconstruction of Vietnam.
They need to share their experience and expertise
with their Vietnamese counterparts. Malaysians need
to take a longer term view of their business
interests in Vietnam and seek lasting business
relationships that are mutually reinforcing and
beneficial. In short Malaysian businesses in
Vietnam must remain responsible corporate citizens
at all times.
10. As Vietnam prepares to take its place in the
assembly of ASEAN nations, Malaysia is happy to note
that Vietnam is narrowing the economic gap with the
other members. Vietnam's past annual growth of over
8.2 percent and the setting of an economic growth
target of between 9-10 percent for 1996 is
heartening. Malaysia is also encouraged by the
serious efforts taken by Vietnam to implement market
liberalisation obligations under AFTA.
11. Malaysia's development experience has shown
that one of the prerequisites for economic take off
is the development of an efficient infrastructure
including legal framework. We recognise that
investments in highways, bridges, port facilities,
water supply, power generations and refuse
collection are necessary to support the other
economic activities in the country. Malaysia is
prepared to share her experience in these areas and
cooperate with Vietnam in developing it's
infrastructure. Malaysian companies are also keen
to invest directly in other areas such as cement
production, oil refineries, tyre manufacturing, food
processing and tourism development.
12. Vietnam, an emerging market with a high rate of
literacy and abundant natural resources, is well
placed to achieve economic prosperity. I am
confident that Vietnam will, in the not too distant
future, join ASEAN's rapidly industrialising
countries. To achieve rapid economic growth Vietnam
needs greater investment and trade. The business
community is looking forward to continued economic
and legal reform and market liberalisation in
Vietnam, which would accelerate bilateral trade and
economic and commercial ties between Vietnam and
Malaysia.
I am confident that the Vietnamese government will
respond to these challenges.
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