Thayer Consultancy Background Briefing:

ABN # 65 648 097 123

Vietnam: APEC Summit -
Strategic Context, Agenda,
Priorities and Official Visits
Carlyle A. Thayer
October 31, 2017
Vietnam is due to host the APEC Economic Leaders' Week in Da Nang City. Could you
provide your assessment of the following issues?
Q1. Can you kindly brief the context in which Vietnam hosts APEC 2017? Is it a
challenge or opportunity for Vietnams hosting?
ANSWER: APEC 2017 is taking place at a time when the world economy is slowly
recovering from the recent global financial crisis and as Chinas economy continues
to expand but at a slower pace. These economic trends are taking place
simultaneously with the rise of anti-globalization sentiment and support for
protectionism among some major powers including most prominently the United
States. The so-called liberal world order established after the Second World War is
weakening as China deliberately acts to undermine this order by offering a China-
centric order epitomized by the creation of the Asian Infrastructure Investment Bank
and the One Belt, One Road initiative.
APEC 2017 is also taking place at the time of stable political transition in China and
discord in the United States. President Xi Jinping has set far-sighted goals to make
China the largest economy in the world and for China to become a model for other
countries.
Q2. Vietnam hosted APEC for the first time in 2006. As an expert in Vietnamese
studies, can you give some assessment of that significant event in relation to
Vietnams foreign policy? Was it a success or not?
ANSWER: As early as 1991 Vietnam set about to muiltilateralize and diversify its
external relations to end its comparative isolation in world affairs. In 1995 Vietnam
became a member of ASEAN and later APEC. Membership in multilateral institutions
brought with it the responsibility to host ministerial and summit meetings. Vietnam
proceeded gradually. In 1997 it hosted the Francophonie summit and a year later it
hosted the 6th ASEAN Summit. This was good preparation for hosting APEC in 2016
that involved meetings of various working groups, ministers and government
leaders.
APEC 2006 was important because it showcased Vietnams ability to host leaders
from twenty-one countries and to contribute constructively to advancing trade
liberalization in the region. As a result this raised Vietnams international prestige
and in my opinion laid the groundwork for Vietnams most important diplomatic
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success: election to the United Nations Security Council as a non-permanent

member in late 2007. It important to note in this regard that Vietnam was the
unanimous choice of the Asia bloc as its candidate and won an overwhelming vote in
the UN General Assembly.
Q3. What do you think about Vietnams agenda (theme and priorities) for APEC
2017?
ANSWER: Vietnam, as APEC host, has set the theme Creating New Dynamism,
Fostering a Shared Future. This is an important theme to capture the urgency of
recovering from the global financial crisis by obtaining consensus among APEC
members to step up efforts to promote economic growth and regional economic
integration through trade and investment.
APECs Economic Ministers, meeting in Vietnam, set four major priorities: (1)
promoting sustainable, innovative and inclusive growth, (2) deepening regional
economic integration, (3) strengthening the competitiveness and innovation of
micro, small and medium-sized enterprises in the digital age, and (4) enhanced food
security and sustainable agriculture in response to climate change.
Since Vietnam is an emerging economy dependent on access to the markets of more
advanced economies it is well placed to identify the bottlenecks to economic
growth. Vietnam has stressed structural reforms and innovation in small and
medium enterprises.
APECs theme also promotes the common and long-term goal of APEC to build a
peaceful, stable, integrated and prosperous community in the Asia-Pacific.
Q4. On the occasion of APEC Economic Leaders Week, Vietnam is expected to
receive leaders from global powers, including US President, Russian President,
Chinese President (some of them is set to pay an official visit to Hanoi in addition to
their attendance at APEC Economic Leaders Week). In your opinion, what is the
significance of those visits to APEC 2017 in general and Vietnam as a host in
particular?
ANSWER: APEC serves as a meeting place for world leaders to meet to advance the
goals of trade and investment liberalization and economic integration in an informal
setting. It also provides a venue for world leaders to meet on the sidelines to discuss
a range of non-economic issues that are of concern. Even if there are tensions in
relations between major countries, the fact that they are showing up at APEC is a
sign that they are at least committed to maintaining a peaceful environment so their
economies can flourish.
Vietnam double benefits from the presence of world leaders. As APEC Chair Vietnam
will play a diplomatic role in promoting APECs objectives in a multilateral setting.
When Vietnam hosts official visits to Hanoi it benefits from direct interaction on a
bilateral basis. Each foreign leader who makes a state visit to Hanoi is acknowledging
Vietnams role as a constructive regional player and the value of maintaining
Vietnams autonomy encourage this independent role. In other words, all major
powers have an interest is seeing that Vietnam is not pulled into the orbit of one
country.
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Q5. Da Nang (rather than Hanoi in 2006) is chosen by Vietnam to host APEC
Economic Leaders Week. Do you think this choice is reasonable or not and why?
ANSWER: I think Da Nang was an excellent choice for the APEC Summit. It is a
modern city with wide streets and little of the traffic congestion of Hanoi or Ho Chi
Minh City. Da Nang has modern hotels of world class standard fronting the East Sea,
thus providing good views and a sea breeze. The Da Nang airport is very modern. All
visitors to APEC will be aware that Vietnam faces the East Sea, is dependent on
maritime resources, and has claims on features in the South China Sea.

Suggested citation: Carlyle A. Thayer, Vietnam: APEC Summit - Strategic Context,

Agenda, Priorities and Official Visits, Thayer Consultancy Background Brief,
October,31 2017. All background briefs are posted on Scribd.com (search for
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