Government urged to prepare economic scenarios amid East Sea tensions

VietNamNet Bridge – Vietnamese parliamentarians, expressing their concerns about escalating tensions in the East Sea, have demanded that the government detail its plans to ease the country’s economic reliance on China and specify possible economic scenarios.

There will be economic solutions when East Sea tensions escalate

Deputy Prime Minister Nguyen Xuan Phuc has reassured the public that Vietnam is taking the initiative in controlling the situation.

“With the achievements gained over the last three decades, we have every reason to believe that Vietnam’s economy is not dependent on any other countries in the world,” he stated.

However, the government still has been requested to provide detailed plans about what Vietnam should do to adapt to the new circumstances.

Ha Si Dong, a National Assembly deputy, told the local press on the sidelines of the ongoing National Assembly’s session on Monday that the East Sea tensions will have major impacts on the national economy, especially on the sectors that make products for export, which have relied heavily on Chinese supplies.

“Businesses are looking forward to the government’s new policies to adapt to the new reality,” Dong said. “The government needs to reveal its plans to promote trade, expand export markets and clear stocks".

He also said that the government needs to help businesses seek alternative supply sources for the input materials sourced from China, so that businesses can maintain their normal production.

Other National Assembly deputies also have urged the government to draw up economic scenarios to cope with the East Sea tensions.

“Politically, we have expressed our will, but economically, we need more detailed reports from the government about what may happen and what we need to do,” said Bui Duc Thu, a deputy from Lai Chau Province.

“What consequences might we have to face if the tensions in the East Sea continue escalating? What will we do if the situation gets worse? What industries would be most affected and what can be done to help them overcome their current difficulties? These are the questions awaiting the government’s answers,” Thu said.

Analysts have warned that the textile and garment industry, the big breadwinner of Vietnam, would be badly affected. That sector of the economy creates jobs and brings in $17.8 billion in annual export revenue, but relies heavily on China as the biggest supplier of input materials.

Mai Xuan Hung, a National Assembly deputy from Hau Giang Province, also emphasized that Vietnam needs to envision all possible scenarios to be ready to cope with them.

Eighty percent of input materials needed for domestic production is from China, while 60 percent of farm produce output is exported to China.Vietnam has been importing the simple products which can be made domestically, such as chopsticks or toothpicks .

Meanwhile, Vuong Dinh Hue, Head of the Communist Party Central Committee’s Economics Commission, said that in the context of global trade liberalization, economies have become more reliant on each other. This means that every economy needs to think carefully before taking any steps, and cannot simply do anything it wants.

Therefore, Hue believes that for the immediate future, it is necessary for Vietnam to focus on settling the internal problems of the economy, including the restructuring of state-owned enterprises.

Dat Viet/VietNamNet

East Sea tensions, economic scenarios