Communist Review - Over the past years, economic diplomacy has played an important role in supporting and accompanying ministries, branches, localities and enterprises to implement foreign economic activities, promoting international economic integration. In the context of the world economy that is facing many difficulties and challenges, economic diplomacy continues to play its role, contributing to deepening the relationship between Vietnam and its partners, bringing the economic relations in particular and the bilateral relations in general to be deep, stable and sustainable.

Active implementation of economic diplomacy

In 1972, in preparation for post-war reconstruction, the Ministry of Foreign Affairs established the Economic Group, under the Ministry Office. On February 27, 1974, the Government Council issued Decision No. 30/QĐ-CP on the establishment of the Economic Affairs Department under the Ministry of Foreign Affairs. Economic diplomacy officially became the task of the Ministry. In diplomatic activities, economic questions are closely linked to political works.

In the 1980s, diplomatic activities focused on taking advantage of aid from socialist countries, overcoming the consequences of Western embargo against Vietnam. The Ministry of Foreign Affairs actively contributed to planning development strategies, making economic policies, helping Vietnam to overcome crisis. In 1985, the Ministry of Foreign Affairs determined that economic diplomacy is the main task. Entering the “Doi moi” period, the Ministry of Foreign Affairs devoted more attention and resources to economic activities in order to facilitate trade and investment activities. Economic diplomacy has made important progress, positively contributing to maintaining a peaceful and stable environment, breaking the embargo; removing difficulities between Vietnam and major partners, international organizations such as the World Bank (WB), the International Monetary Fund (IMF); taking initiative in international economic integration.

From the mid-1990s to 2006, economic diplomacy focused on three priorities: Expanding relationship between Vietnam and other countries; promoting international economic integration through joining the Asia-Pacific Economic Cooperation (APEC), negotiating to join the World Trade Organization (WTO), and actively participating in regional forums and the United Nations cooperation mechanism; supporting  ministries, branches, localities and enterprises in foreign economic promotion activities, such as attracting foreign direct investment (FDI), official development assistance (ODA); promoting merchandise exports, labor exports and tourism promotion.

Awareness of economic diplomacy has been heightend in this period. Economic diplomacy has been implemented synchronously, comprehensively, with specific priorities. Economic diplomacy has been harmoniously combined with political diplomacy and cultural diplomacy. Many major economic cooperation agreements were implemented after high-level visits; foreign economic promotion activities were successfully organized and achieved positive results. Many representative agencies are active in creating opportunities, introducing partners, exploiting potential markets, as well as coordinating and supporting domestic agencies and enterprises to promptly settle international economic disputes.

Communication and research work of economic diplomacy has been regularly strengthened, contributing to advising the Government in the direction and management of the macroeconomy, and propose solutions to overcome challenges and difficulties. In addition, economic diplomacy has actively supported ministries, sectors, localities and enterprises in handling commercial disputes…; in expanding external economic relations of localities, such as introducing Vietnamese localities to promotion organizations, organizing investment promotion conferences of Vietnamese localities.

Economic diplomacy has also focused on mobilizing overseas compatriots. In July 2006, for the first time, Vietnam successfully organized the Conference of Overseas Vietnamese Enterprises in Da Nang and establed the Business Association of Overseas Vietnamese (BAOOV). Many representative agencies, especially in Russia and Central - Eastern Europe, have mobilized overseas Vietnamese enterprises to connect and export Vietnamese goods to these regions. Because this is a new period, economic diplomacy faced initial confusion. The way of operating the apparatus has not kept up with the reality. The implications of economic diplomacy still need to be adjusted and perfected.

From 2007 up to now, the role of economic diplomacy has been more clearly defined, tha are respectively: The role of paving the way, promoting the power of economic diplomacy along with political diplomacy, cultural diplomacy in order to expand and deepen the cooperation of Vietnam with partners, pioneering in exploiting new markets and international cooperation fields. The role of advising the Party, the State, ministries, branches and localities in making macro policies in term of development strategies, international economic - political issues and international economic relations. The role of supporting ministries, branches, localities and enterprises in foreign economic activities. Ministries, branches, localities and enterprises play a key role while economic diplomacy only supports solving problems in implementing plans and projects in cooperation with foreign countries. The role of supervising and inspecting the implementation of international missions and commitments on foreign economic relations.

Until now, economic diplomacy has been deployed in many fields and achieved important results:

Firstly, it has proactively proposed and increased the economic implications during the visits of senior leaders, improved the efficiency of the governance and coordination mechanism of economic diplomacy. These visits differ from the previous ones in the fact that they both strengthen political and economic ties. In 2018, economic diplomacy played a leading role in building new, feasible, long-term channels of cooperation, especially with strategic and comprehensive partners, as well as solving problems in economic relations. On the multilateral level, the Ministry of Foreign Affairs, other ministries and branches have mobilized countries to promote negotiations, sign and ratify free trade agreements (FTAs), especially the new generation FTAs in order to ensure the key interests, position and relationship of Vietnam with its important partners. Thereby, it has effectively contributed to the mobilization of countries to recognize Vietnam as a market economy. As a result, 71 countries have recognized Vietnam's economy as a market economy⁽¹⁾.

Secondly, it has promoted and created  a breakthrough in Vietnam's relations with other countries, creating a favorable environment for international economic integration. The year of 2018 witnessed the efforts to promote practical economic interests, enhance Vietnam's external position at multilateral forums, such as ASEAN, APEC, ASEM, subregional cooperation mechanisms such as the Greater Mekong Subregion (GMS), Ayeyarwady - Chao Phraya - Mekong Economic Cooperation Strategy (AMECS)... In particular, in 2018  World Economic Forum Conference on ASEAN (WEF ASEAN) held in Vietnam has left deep impressions. WEF ASEAN 2018 provided many useful ideas to Vietnam in the formulation and implementation of socio-economic development strategies and plans as well as in the preparation for the presidency of ASEAN 2020.

Thirdly, with its  specific strength of managing the network of overseas representations and capacity to access international policy consultation institutions, economic diplomacy has promptly made assessment reports and forecasts about the economic world situation,  advised international experiences in handling economic issues for the Government in macroeconomic management and crisis resolution.

The representative agencies and entities of the Ministry of Foreign Affairs have actively supported enterprises to learn about business practices, seek investment opportunities, penetrate foreign markets, protect interests and remove difficulties in commercial disputes. With the role of connection, the representative offices provide information about the investment and business environment, answer questions about Vietnam's business regulations, and support many foreign corporations to increase  investment and business in Vietnam. The Ministry of Foreign Affairs also presided and coordinated with ministries and branches in implementing breakthrough economic promotion activities in a number of key markets.

Fourthly, the role of economic diplomacy has been renewed in creating the necessary conditions for Vietnam's economic transition in the new stage of development. The Ministry of Foreign Affairs has diversified and multilateralized information channels and sources, taken full advantage of foreign partners. Economic diplomacy sector has diversified economic information by creating online economic diplomacy websites, headline news update information on the economic situation and policies of major countries, regions, doing researches on  breaking and emerging issues.

Local support activities were focused and implemented in many forms such as supporting on-site investment promotion conferences, supporting the connection between Vietnamese localities and foreign localities, organizing foreign promotion delegations of localities with key points. In 2018, on the occasion of the 30th Diplomatic Conference, the Ministry of Foreign Affairs held the first seminar to discuss the needs of enterprises and support mechanisms in the coming years with the participation of Vietnamese representative offices in more than 90 countries and nearly 400 enterprises.

Fifthly, economic diplomacy has contributed to consolidating the national unity. The mobilization of overseas Vietnamese communities and enterprises to contribute their knowledge, capital, assets and scientific and technological potential to the country's development has been paid adequate attention. The Ministry of Foreign Affairs has actively organized many necessary activities to take advantage of the human and financial resources to contribute to the national development, to promote the role of overseas Vietnamese community and enterprises in order to expand the market for Vietnamese goods and services in the host country.

Promotion of economic diplomacy

In the context of rapid and unpredictable movements in the world and the region, Vietnam entered the period of accelerating extensive international economic integration. Therefore, economic diplomacy needs to promptly overcome some following shortcomings:

Although the perception of economic diplomacy has changed positively in recent years, sometimes ministries and branches misunderstanding of economic diplomacy. Asa result, they are not willing to cooperate with the Ministry of Foreign Affairs and overseas representative agencies of Vietnam. The coordination between the Ministry of Foreign Affairs and the ministries and branches is sometimes not really effective. The coordination between the representative missions and commercial affair in many countries has not achieved practical results.

The link between politics and economy is not yet effective. Over the past time, the Ministry of Foreign Affairs has proactively and actively connected these two factors, especially during high-level visits. However, a number of ministries and branches are not really interested in taking advantage of political strengths to promote economic activities. The coordination between the representative agencies and enterprises is not close and regular. Some activities are still formalistic.

The mechanism for implementing economic diplomacy has not been completed. The coordination mechanism of economic diplomacy is mainly applied within the framework of entities under the Ministry of Foreign Affairs. Ministries, branches and localities have just implemented economic diplomacy activities in the fields under their charge, but have not paid much attention to the coordination with relevant agencies and enterprises.

There is a lack of human resources. Diplomatic officers' skills in economic diplomacy have not really met the general demand, especially the requirement in foreign languages, knowledge of international economic law, negotiation skills... Funding for economic diplomacy is limited.

In order to contribute to the good implementation of the policy on "synchronous and comprehensive implementation of foreign affairs, proactive and active international integration" proposed by the 12th Congress of the Party, in the coming years, economic diplomacy should be promoted comprehensively and focus on the following main directions:

Firstly, it is necessary to firmly grasp the economic policies of the Party and State in the current period, pay special attention to multilateral foreign relations in the economic field, which are identified as a priority to increase comprehensive national power and enhance the industrialization and modernization of the country. It is needful to strictly follow the Secretariat’s Directive No.25- CT / TW, dated August 28, 2018 on Promoting and elevating multilateral diplimacy until 2030 in order to promote international economic integration, substantially participate to regional economic forums and global economic governance forums, to well prepare for the 2020 ASEAN Chairmanship Year.

Secondly, There is a need for a consistent perception of the role and importance of economic diplomacy in order to design and develop overall and detailed projects, plans relevant to sectors, locations, and partners in the medium and long term. The implementation of economic diplomacy should be done more methodically, diversely and practically; The economic, commercial and political factors need to be closely linked, flexibly applied, in accordance with the "position" and "capacity" of Vietnam. The exchange of information between domestic  and overseas  as well as between ministries, branches and localities should be strengthened. The support of the localities, enterprises continues to be specific and practical, following their needs, thereby building drastic support measures to bring specific results.

Thirdly, it is advisory to link smoothly the three pillars of political diplomacy, economic diplomacy and cultural diplomacy. In the context of Vietnam's enhanced position and image, Vietnam need to build “a high-level diplomatic strategy” to “closely link economy and politic” as the basis for “Negotiation” with other countries. This is really a big challenge for economic diplomacy, requiring ministries, branches, businesses and localities to be consistent in terms of perception as well as implementation, to ensure close coordination.

Fourthly, it is recommended to strengthen the roles and responsibilities of representative agencies, especially in foreign economic fields, prospect partners, expand markets, support enterprises, especially enterprises doing business with foreign countries. The results of economic diplomacy should be considered as one of the most important criteria in evaluating the performance of representative agencies.

Fifthly, it is necessary to strengthen the coordination between the Ministry of Foreign Affairs and ministries, branches by focusing on strengthening cooperation between focal point agencies. It must establish two-way coummunication mechanism, coordination mechanism, and conduct foreign economic promotion activities, support enterprises and localities.

Sixthly, it is needful to build the appropriate apparatus to steer the economic diplomacy effectively and strengthen the organization of economic diplomacy at the representative offices. The apparatus must work in a practical and effective direction, based on results rather than priorities.

Seventhly, it is recommended to enhance promotional activities, investment and trade promotion, and national image in various forms. In addition, it is compulsory to step up the search for new projects, fields and modes of cooperation in order to enhance the mutual benefits with strategic partners and comprehensive partners; take advantage of FTAs ​​(CPTPP, EVFTA ...) to consolidate traditional markets and expand markets.

Eighthly, it is advisory to support the building of a strong network of overseas Vietnamese, strengthening bilateral relations, forming advocacy resources with local authorities. It must make use of mental powers and financial resources, create favorable conditions for overseas Vietnamese communities to contribute to the country's socio-economic development./.

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(1) Improving the efficiency of economic diplomacy, https://baodautu.vn/nang-cao-hieu-qua-cong-tac-ngoai-giao-kinh-te-d86312.html, August 15, 2018

This article was published in the Communist Review, No. 939 (April 2020)