ADB highlights importance of regional integration for Vietnam amid global trade challenges

At the ADB Annual Meeting in Milan, Italy, ADB vice-president Scott Morris emphasized that the best path forward for countries in the region, especially export-oriented economies like Vietnam, is to pursue deeper integration.

He said greater regional integration is crucial not only to withstand global external shocks but also as a long-term path to regional growth.

“A stronger regional economy means stronger national member economies,” Morris emphasized.

Answering Tuoi Tre (Youth) newspaper reporter’s question about trade orientations for countries with open trade systems like Vietnam, Morris said there is significant risk in the near term resulting from U.S. announcements around tariffs.

“I think each country within ASEAN is seeking to engage bilaterally with the U.S., but our message to the region is to use this opportunity to forge greater regional integration," Morris noted.

“It is always, in our view, the best path forward for each country in the region to be looking for greater levels of integration that can start within ASEAN."

The ADB vice-president added that it is not only about increasing trade within the region, but also about addressing the physical infrastructure needs for a more integrated regional economy.

He said that there is huge ambition right now for energy sector commitments, the so-called ASEAN power grid. ADB, for its part, is committing a very high level of resources, up to US$10 billion, to support this initiative in the years ahead.

Morris told Tuoi Tre that he visited Hanoi a few weeks ago, really appreciated the meeting with Prime Minister Pham Minh Chinh, and was delighted to hear his request for a much more ambitious partnership focused on key mega-infrastructure projects.

“It's been a period where we have not been lending significant amounts to the Vietnamese government,” the ADB senior leader noted, adding that he hopes to see significant levels of commitment in terms of financial resources and technical expertise, for these are exactly the kinds of investments that the country needs right now in core areas of transport infrastructure. 

The support will help Vietnam with overall competitiveness and productivity growth in the longer term.

In his speech delivered at the ADB Governors’ Business Session, deputy governor of the State Bank of Vietnam Doan Thai Son stated that new tariff policies from several major economies could significantly impact global supply chains, trade, investment, exchange rates, and interest rates, particularly for developing and emerging economies.

Son emphasized the need to strengthen regional cooperation, share policy experiences, and promote coordinated actions.

He noted that Vietnam strongly supports open regionalism based on rules and principles of transparency to build trust, lay the foundation for sustainable cooperation, and deepen regional economic integration.

This year's ADB Annual Meeting attracted over 60 international delegations, including G7 countries and major economies of the Asia-Pacific region.