Top business leaders
attending a Pacific Rim economic conference on Friday praised Vietnam for its
stunning progress in reforming its economy and joining the world trading
system.
"Vietnam
has demonstrated to the world its capacity for quantum leaps," said
Craig Mundie, chief research and strategy officer for Microsoft Corp.
"It's clear that the government has recognized that
broad-based reform and economic liberalization are essential to Vietnam's
integration into the global economy," Mundie said.
Hanoi's role as host to the
annual summit of Asia-Pacific business and political leaders gives Vietnam a
rare chance to showcase its transformation from a war-ravaged backwater to a
fast-growing exporter.
More than 20 years of "doi moi" market-oriented
reforms have made Vietnam
the region's fastest expanding economy after China, with growth racing ahead
at a 7.5 percent clip.
The CEO gathering comes fresh on the heels of two of the biggest
business developments to hit Vietnam
in years _ its approval for membership in the World Trade Organization and
Intel Corp.'s announcement last week that it will invest US$1 billion in a
chip plant in Ho Chi Minh City.
Executives lauded Vietnam's effort to amend its
laws to conform with WTO rules as it prepares to join the Geneva-based trade
group next month.
Foreign investment in Vietnam is surging. The country's
fledgling stock market _ just 52 listed companies and growing rapidly _ has
seen its overall value increase tenfold in less than a year.
"Vietnam
is generally recognized as one of the world's most promising economies and
with good reason," said Michael Smith, president and chief executive
officer of HSBC.
Smith said the policies had encouraged HSBC to invest, as well
as many other multinationals.
Local business leaders joined the chorus of praise.
"Today Vietnam
has arrived on the global stage," declared Vu Tien Loc, president of the
APEC CEO summit and chairman of the Vietnam Chamber of Commerce and Industry.
The summit has brought fresh opportunities, with Vietnam signing two deals with U.S.
companies worth $1.5 billion.
State-owned Vietnam Coal & Minerals Corp., or Vinacomin, signed
a contract with global power producer AES Corp., based in Arlington, Virginia,
to build a coal-fired power plant at a cost of $1.4 billion. AES will
contribute 90 percent of the capital, with Vinacomin providing 10 percent.
In another deal signed Thursday, state-owned Vietnam National
Shipping Lines, or Vinalines, agreed to form a $100 million container
terminal joint venture with Seattle-based SSA Marine.
Vietnam's thinnest times came
after the Vietnam War ended in 1975 and the communists united the country.
The country still faces daunting obstacles, however, in building
up infrastructure and training its workers for the newly capitalist-style
economy.
"In addition, new challenges from terrorism, pandemics,
natural disasters and technological inequality threaten the sustainability of
regional prosperity," Loc said.
"We believe that worldwide prosperity can only be achieved
through shared opportunities and shared development."
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