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MINISTRY OF EDUCATION AND TRAINING
THUONG MAI UNIVERSITY
-------------------------

Le Nguyen Dieu Anh

TRADE-ORIENTED SUSTAINABLE DEVELOPMENT IN THE
CONTEXT OF INTERNATIONAL INTERGRATION IN VIETNAM
Major: Economic Management
Code: 934.04.10

Dessertation summary

Hanoi, 2020


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The desseration is completed at Thuong mai University

Supervisors:
1. Asso. Prof. Dr. Ha Van Su
2. Asso. Prof. Dr. Pham Thuy Hong

Reviewer 1: Asso. Prof. Phan To Uyen
Reviewer 2: Asso. Prof. Nguyen Thi Nguyet
Reviewer 3: Asso. Prof. Vu Thi Kim Oanh

The dessertation will be upholded in the University's Dessertation

Evaluation Council
Meeting at the Thuong mai University
At……. time …… date ………. month ………. year ………….
The dissertation can be found at: National Library
Library of Thuong mai University


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INTRODUCTION
1. Rationales of the research
Globalization is becoming an objective trend of countries all over the world. Participating in
globalization and international integration brings many benefits such as developing import and export,
expanding markets, contributing to boosting production forces .... However, its negative impacts on
almost aspects of the socio-economic life of nations are significant, especially for developing and
underdeveloped countries. International integration plays an important role in promoting the export,
especially raw materials and semi-processed goods export, which may lead to the exhaustion of natural
resources and serious environmental damage. Warnings about an unsustainable development are
issuing a challenge to countries which participate in international integration.
Sustainable development is a stable economic development associated with ensuring social
security and protecting the ecological environment, or sustainable development is the developing
process of today's generation without harming to future generations. In the process of international
integration, opening markets and strengthening integration with the goal of ensuring trade-oriented
sustainable development is an urgent issue which is attracting the attention of the State, organizations
and all members of society. It is necessary for countries to develop a trade-oriented sustainable
development strategy consistent with their own strengths and advantages. A truly sustainable trade
policy will also avoid excessive reliance on natural resources, commitment to high environmental
standards in trade agreements, and the reduction on air and water pollution.
Relating to Vietnam, globalization and international integration have brought significant strides to
Vietnam's economy. From a poor and food-poor country after the war in 1975, Vietnam has become
one of the world's leading exporters such as rice and coffee. In general, total export turnover of

Vietnam in recent years was higher than the previous years; in 2019 it increased 8.1% compared to
2018, reaching 263.45 billion USD and was the fourth consecutive year of trade surplus. However, the
impacts of international integration and trade liberalization have had a significant impact on economic
sustainability, social equality, and a rapid increase in the gap between the rich and the poor, ecological
environment, and environmental pollution. The marine ecosystem is seriously affected, the mineral
resources are in danger of being exhausted, and the area ofnatural forests is being degraded and lost at
an unstable pace. In the process of international economic integration, trade has become a pioneer, with
trade relations paving the way for official diplomatic relations between nations. Trade development is
the way to exploit the potentials and strengths of the country, attract foreign investment, accelerate the
industrialization and modernization of the country, aiming at the goal of sustainable development. .
Therefore, in order to develop Vietnam's economy and society sustainably in the period of international
integration, it is necessary to formulate strategies and solutions for trade-oriented sustainable
development in the context of international integration in Vietnam nowadays.
In terms of theory, there have been studies on trade-oriented sustainable development in general
and for regions in particular. However, there has been no research developing a complete theoretical
framework, especially considering the impact of international integration, multidimensional impacts on


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trade in general, and the impact of unsustainability such as economic vulnerability, financial crisis,
unemployment, widening the gap between the rich and the poor, environmental pollution ... In-depth
study of trade-oriented sustainable development in the context of international integration is essential,
which may contribute to develop theoretical and practical management situations.
Therefore, the topic "Trade-oriented sustainable development in the context of international
integration in Vietnam" is selected for the research; it has both theoretical and practical implications.
2. Literature reviews
The author has summarized the local and international studies related to the research topic in the
following groups.
2.1.1 Sustainable development
First of all, the studies about sustainable development include: Our common future of WCED

(1987), “Beyond Economic Growth: An Introduction to Sustainable Development” of Tatyana P.
Soubbotina (2004), Peter P. Rogers, Kazi F. Jalal và John A. Boyd (2007), Dinh Van An (2005) về
"Perspective and reality of fast, high-quality and sustainable socio-economic development in Vietnam";
Le Xuan Dinh (2005), 'Sustainable development is a guarantee of socialist orientation of market
economy in Vietnam', Ministry-level project "Sustainable development from concept to action" of
author Ha Huy Thanh in 2009, Institute for Environment Research and Sustainable Development.
Report of the United Nations Industrial Development Organization - UNIDO 2012, "Towards green
growth from green industry development in Vietnam".
2.1.2 Trade and trade-oriented sustainable development
The related studies include: Author John Asafu-Adjaye in 2004 with the work "International
trade and sustainable development in Sub-Saharan Africa"; UNEP report "Sustainable Trade and
Poverty Reduction: New Approaches to Intergrated Policy Making at the National Level" in 2006;
Research by Chen Jiyong, Liu Wei and Hu Yi in 2006 on "Foreign trade, environmental protection and
sustainable economic growth in China”; the research done by Moustapha Kamal Gueye, Malena Sell,
Janet Strachan 2009 on "Trade, climate change and sustainable development: key issues for small
states, least development countries and vulnerable economic"; and Author Paul Hawken (2013) in the
book "The Ecology of Commerce".
2.1.3 Trade-oriented sustainable development in international context
a. Trade-oriented sustainable development in international context
The group of authors Grant Hewison, Veena Jha and Maree Underhill (1997) published the book
"Trade, Environment and Sustainable Development: A South Asian Perspective"; The World Trade
Organization (WTO) published the book "Trade, Development and the Environment" in 2000; Wiliam
R. Cline (2004) conducted a research on "Trade Policy and Global Poverty"; Zoltan Ban’s research in
2012 on "Sustainable Trade: Changing the Environment the Market Operates in Through Standardized
Global Trade Tariffs paperback"; and Paul Ekins’s study on "Trade, Globalization and Sustainability
Impact Assessment: A Critical Look at Methods and Outcomes" in 2012.
A number of studies of the Ministry of Industry and Trade, Ministry-level scientific research


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projects such as "Main solutions to develop trade following the approach of sustainable development in
the context of Vietnam's international economic integration" by Ha Van Su in 2004; PhD thesis in
economics on "Solutions to enhance state management of environmental protection in order to develop
Vietnam's trade in the context of international economic integration" by Doan Thi Thanh Huong in
2008, Commercial Research Institute; Economic doctoral thesis on "Sustainable export in Vietnam in
the process of international economic integration" (2009) by Ho Trung Thanh, University of
Economics, Vietnam National University, Hanoi; Ha Thi Thanh Binh’s research in 2012 on "Protection
of trade in the context of international economic integration and the adjustment effect of Vietnamese
law".
b. Evaluation criteria on Trade-oriented sustainable development
The following studies and materials are related to the above-said topics: Thomas M. Parris and
Robert W. Kates (2003); United Nations (1996); 1995 United Nations Committee for Sustainable
Development (CSD); CGSDI Sustainable Development Goals (1999) Book (OECD, 2011b); World
Bank (WB, 2012); R. Prescott Allen (2001), The World Conservation Union has published the Well
Being index (WI).
In addition, Mathis Wackernagel (2003) has developed Ecological footprint; Environmental
sustainability index of the World Economic Forum (2002); Decision No. 432 / QD-TTg dated 12 April
2012 promulgating the monitoring and evaluation indicators for Vietnam's sustainable development
period 2011-2020; UNCTAD (2016) developed a set of trade indicators to assess Efficient commercial
price of the nation; The Economist Intelligence Unit (2016) developed the Asia Sustainable Trade
Index
2.1.4 Elements affecting Trade-oriented sustainable development in globalization context
The studies of Kris MYLaw (2010), Liu Ligang (2001), Liu Bangcheng and Jiang Taiping
(2000), Wu Yingyu (2003), Vittorio, Raffaella & Giuliano (1999), Yang Mei (2016), Research of
Jianteng Xu, Yuyu Chen and Qingguo Bai (2016), Ho Trung Thanh (2009), Duong Thi Tinh (2015,
Nguyen Thanh Hoai (2012).
In the content of this review, besides pointing out the scientific values (theoretical and practical)
inherited, the PhD student also identified the research gap of the thesis topic.
3. Aims of the research
The dissertation studies the scientific basis (both theoretical and practical) to propose solutions

for trade-oriented sustainable development in Vietnam in the context of international integration by
2025 and the following years.
4. Objectives of the research
To achieve the objectives of the project, it is necessary to focus on the following tasks:
Firstly, systematize and build the basic principles of trade-oriented sustainable development of
countries such as: the essence and role of trade-oriented sustainable development; Contents and criteria
for evaluating trade-oriented sustainable development in the context of international integration.


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Secondly, analyze and assess the current situation of trade-oriented sustainable development in
the context of international integration in Vietnam, linking the relationship between trade and
environmental protection and trade with social issues.
Thirdly, analyze and assess the status of trade-oriented sustainable development policies in the
context of international integration in Vietnam.
Fourthly, analyze the impact of factors affecting trade-oriented sustainable development in the
context of international integration in Vietnam.
Fifthly, explain the existing problems in the implementation of trade-oriented sustainable
development in our country when facing the challenges brought about by international integration,
pointing out the advantages and experience lessons, limitations and causes of Vietnam's trade-oriented
sustainable development.
Sixthly, give some appropriate perspectives, directions and solutions for the reality of the research
situation in the period of 1995-2019, with orientation to 2025 and the following years for trade-oriented
sustainable development in the context of international integration in Vietnam and in accordance with
the orientation of the State.
5. Subject(s) and scope of the research
5.1 Subject(s) of the research
The subject of the thesis is the theories and practices of trade-oriented sustainable development in
the context of international integration in Vietnam.
5.2 Scope of the study

In terms of content: The dissertation only focuses on trade development research based on
sustainable approach associated with the results of trade development achieved in terms of both
domestic and import-export trade; Only examines the comprehension of of trade-oriented sustainable
development but focuses on factors due to the impact of international integration, especially
international economic integration.
Trade, in the broad sense of the WTO, includes both goods trading and services trading.
However, services trading is a very broad sector (there are 12 sectors and 155 sub-sectors). Moreover,
the dissertation is specialized in economic management, the trade approach is usually goods trading
(including domestic trade and import-export trade), and related to the mode of wholesale and retail,
franchises and agents. This will be consistent with Vietnam, with trade management of goods managed
by the Ministry of Industry and Trade. Therefore, the scope of the dissertation is Vietnam's goods
trading, and it focuses on domestic trade and import-export trade.
In terms of space: The dissertation mainly focuses on trade development in the context of
international integration, domestic and import-export goods trading, and focuses only on development
issues associated with demand for sustainable development.
In terms of time: The dissertation studies the current situation of Vietnam's trade-oriented
sustainable development from 1995 to 2019 and proposes views and solutions by 2025 and following
years.


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6. Research methodology
a. Methods of analyzing and summarizing theory: This method is used to serve the study of
document overview, to build a theoretical basis for the dissertation topic. By linking the aspects, parts,
information relationships from the collected theories into a whole, it creates a complete and deep
theoretical system of trade-oriented sustainable development.
b. Method of classifying and systematizing theory: This method is used in the study overview,
systematizing theory to build concept, content, evaluation criteria, views and policies of the State on
trade-oriented sustainable development.
c. Methods of collecting and processing data

- Qualitative research: This method is used in researching the comprehension of trade-oriented
sustainable development, policy evaluation, and trade-oriented sustainable development orientation of
Vietnam. Secondary data is collected from statistical inventory, reports of state management agencies,
organizations, enterprises, inheriting previous studies related to the topic.
- Quantitative research: This method is used in collecting, statistically describing data, testing
models, estimating variables and assessing the impact of factors affecting trade-oriented sustainable
development in Vietnam in the context of international integration under the ARDL model, on the basis
of secondary data sources of the General Statistics Office, WB, Tradingeconomics, ...
d. Method of totaling up and comparing: This method is used to summarize documents, collate
between stages, different areas; Using the system of tables and figures to show the scale and quality of
trade-oriented sustainable development in Vietnam in the context of international integration.
7. Scientific and practical significance of the research topic
7.1. Theoretically
The research contributes to systematize and develop the theory of trade-oriented sustainable
development; clarify the content and nature and the relationship between trade development,
environmental protection and social issues.
The research analyzes the impacts of globalization and international integration on trade-oriented
sustainable development; conditions to ensure trade-oriented sustainable development in international
integration.
The research analyzes case studies of trade-oriented sustainable development from a number of
countries around the world; trade-oriented sustainable development indicators system.
The research builds appropriate models which can apply to assess the impact of factors affecting
trade-oriented sustainable development in Vietnam in the context of international integration.
7.2. Practically
The research clarifies the sustainability of trade development between 1995 and 2019 according
to the criteria of trade-oriented sustainable development.
The research applies a model to assess the impact of factors affecting trade-oriented sustainable
development in Vietnam in the context of international integration and determines model experimental
results.



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The research forecast trade-oriented sustainable development trends of Vietnam and its impacts
on environment and society in the upcoming time.
The research proposes orienting solutions to Vietnam’s trade-oriented sustainable development in
the context of international integration by 2025 and the following years.
8. Research organization
The dissertation includes three chapters:
Chapter 1: Theoretical basis and practical experience on trade-oriented sustainable development
in the context of international integration.
Chapter 2: Analyzing and assessing the current situation of trade-oriented sustainable
development in Vietnam in the context of international integration today.
Chapter 3: Perspectives and key solutions to develop trade-oriented sustainable development in
the context of Vietnam's international integration by 2025 and the following years.


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Chapter 1. THEORETICAL BASIS AND PRACTICAL EXPERIENCE OF TRADE ORIENTED SUSTAINABLE DEVELOPMENT IN THE CONTEXT OF INTERNATIONAL
INTEGRATION
1.1. THE NATURE AND THE NECESSITY OF TRADE-ORIENTED SUSTAINABLE
DEVELOPMENT IN THE CONTEXT OF INTERNATIONAL INTEGRATION OF COUNTRIES
NOWADAYS
1.1.1. Basic issues about development and sustainable development
Growth and development are two sides of social development and are closely related. If
economic growth only focuses on bringing economic benefits to a population group or an area but does
not bring economic benefits to the society, economic growth will increase the social inequality. Such
growth methods are short-term, do not promote development and will be eliminated.
The most widely used and accepted definition of sustainable development is WCED’s (1987),
sustainable development is the development that meets current needs, but does not hinder the ability to
meet the needs of future generations. The goal of sustainable development is to achieve material

adequacy, spiritual and cultural wealth, civic equality and social consensus, harmony between human
and nature. .
The three intersecting circle model is most commonly used to describe sustainable development
(Barkemeyer, 2014). Sustainable development is the intersection of the middle - where three areas are
unified. Although there is a lot of debate about the sustainable development model, the three
intersecting circle model is still accepted worldwide, it helps to conceptualize the concept of
sustainable development (Peeters, 2012). The circles represent the difference between sustainable
development with specific policies and political issues, proposing a holistic and complementary
concept for sustainable development.
1.1.2. The nature of trade-oriented sustainable development
1.1.2.1 Definition and objective of trade-oriented sustainable development
a. Commercial concept
Viewed from the perspective of social division of labor, trade is considered as an independent
economic sector of the economy. Within the framework of this thesis, trade is approached as goods
trading and is viewed from an economic perspective. The trade industry specializes in organizing,
circulating goods and providing services to society through purchasing and selling in order to make
profits. Trade developing, smooth circulation of goods manifests the healthy and prosperous economy.
b. The concept of trade-oriented sustainable development
From the perspective of approaching trade development towards sustainable development goals,
the concept of trade-oriented sustainable development in this thesis is given as follow: Trade-oriented
sustainable development is the development that the results of trade development meet the
requirements of sustainable development, which is manifested by the rapid and stable development
of scale, reasonable structure and quality assurance for growth and poverty reduction and
environmental protection.


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Continuous trade growth, containing many risks when fluctuations appear due to unreasonable
structure, causing macroeconomic instability; or export growth but mainly based on natural resources,
which leads to the exhaustion of natural resources, environmental pollution; or export only benefits the

group, causes social inequality ... it is not a trade-oriented sustainable development. trade-oriented
sustainable development must be export development whose results meet the requirements of
sustainability - macroeconomic stability, job creation, poverty reduction and environmental
improvement.
c. Trade-oriented sustainable development goals
Firstly, developing trade scale towards sustainability. Trade-oriented sustainable development
must maintain a fast, stable and long-term growth rate in terms of scale and speed of domestic and
international trade.
Secondly, developing trade structure towards sustainability. Ensuring quality of trade based on
sustainable of trade structure and production; improving the competitiveness of goods in the
international market, participating in the global value chain integrating successfully step-by-step into
the regional and world economy.
Thirdly, ensuring the quality of trade-oriented sustainable development. Increasing the added
value of trade, increasing the proportion of high-tech goods, reducing the proportion of raw products;
strengthening capacity and efficiency to participate in global value chains. The results of trade-oriented
sustainable development contribute positively to the sustainable development of the economy,
macroeconomic stability.
1.1.3. The need for trade-oriented sustainable development in the context of international
integration of countries today
Integration has become a major trend of the modern world, strongly affected international
relations and the life of each nation. International integration is the process of linking and cementing
countries / territories together based on the sharing of interests, goals, values, resources, power and
compliance with common rules within international institutions or organizations to create collective
power to resolve common issues of common interest. Economic integration is a very important
foundation for the sustainable existence of integration in other fields, especially political integration
and in general, priority promoted by countries as a lever for cooperation and development in the
context of globalization.
a. The necessity of trade-oriented sustainable development in the context of international integration
Firstly, the process of trade development has made a big difference in the level of economic,
cultural and income development across regions, which results from the differences in infrastructure

and communication systems, information, transportation, investment capital, labor qualifications,
leading to differences in market access capacity. Since then, the gap between the rich and the poor
among social classes, between regions and each other become bigger.
Secondly, in the context of international integration and globalization, the country wants to take
advantage of international investment flows, advanced technology flows, modern science and


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technology ... to develop the economy must actively and proactively open the economy, liberalize
trade.
Thirdly, the import of old and outdated equipment causes pollution of the ecological environment
... Therefore, it is very necessary for countries to develop a trade-oriented sustainable development
strategy in accordance with their strength and its national advantages in the context of international
integration.
b. Issues raised for trade-oriented sustainable development in the context of international integration
of countries today
- They must have full understanding of international integration and trade liberalization.
- There must be a development strategy and appropriate steps in each period of international
integration
- There must be a strong and effective State apparatus to stabilize the political situation and
manage the economy to maintain the direction on the basis of ensuring the independence, autonomy
and sovereignty of the nation, focus on the right role functions, create common conditions, leverage
and motivation...
- The goal of successful international integration and ensuring the sustainable development of the
country must be based on the domestic strength as the main force, internalize the external forces and
enhance the national position.
1.2. CONTENTS AND AFFECTING FACTORS TO TRADE-ORIENTED SUSTAINABLE
DEVELOPMENT OF COUNTRIES IN THE CONTEXT OF INTERNATIONAL INTEGRATION
1.2.1. Content and criteria reflecting the trade-oriented sustainable development of countries in
the context of international integration

1.2.1.1. Basic content of trade-oriented sustainable development of countries in the context of
international integration
a. Developing trade scale towards sustainability
It is essential to expand the domestic market, strongly develop domestic trade, develop goods
with competitive advantages, and build domestic goods brands; ensure the quantity and structure of
goods circulating smoothly throughout the country, especially the rural and remote areas.
It is essential to develop export and import activities, enhance the added value from trade and
export goods capacity into the global value chain; diversify import and export markets, diversify
relationships, expand trade relations with countries around the world.
b. Developing trade structure towards sustainability
Shifting actively the export-oriented trade structure, this can contribute to create an economy
with a reasonable economic structure, promoting the country’s comparative advantage, fitting with
markets and international labor division.
Shifting trade growth mainly from width to depth, using effectively scientific and technological
achievements to improve labor productivity, improve the competitiveness of commodity products and
improve the efficient use of investment capital.


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Developing long-term strategy on structure of exporting products.
Changing goods circulation model towards cleaner and more environmental - friendly basing on
the economical use of non-renewable resources, minimize toxic waste and difficult to decompose
waste.
c. Ensuring the quality of trade-oriented sustainable development
Increasing the added value of trade, increasing the proportion of high-tech goods, reducing the
proportion of raw products; strengthening capacity and efficiency to participate in global value chains.
The results of trade-oriented sustainable development contribute positively to the sustainable
development of the economy, macroeconomic stability, associated with the rational use of natural
resources, biodiversity conservation, and is linked to the goal of poverty reduction and social justice
through jobs for workers and creation of high value-added jobs.

1.2.1.2 Criteria reflects trade-oriented sustainable development in the context of international
integration
a. Scale of trade-oriented sustainable development

 Growth of gross retail sales of goods
Growth of gross retail
sales of goods

Gross retail sales of goods tn - Gross retail sales of goods tn-1
=

Gross retail sales of goods tn

x 100%
(2.1)

This index maintains a stable growth rate of total circulating goods in the research period to
ensure the sustainable development.

 Growth rate of goods export-import turnover
During the transition period, the current trade deficit must ensure a future surplus; goods export
and import turnover tend to grow rapidly, continuously, stably and in combination with reasonable
trade structure, showing a trade-oriented sustainable development.
b. Trade-oriented sustainable development structure
Export (Import) structure
by commodity
group/SITC/market

=


Export (Import) value by commodity group/ SITC/market
Total Export (Import) value

x 100 (2.4)

c. Trade-oriented sustainable development quality

 Join the global value chain
For the goal of trade-oriented sustainable development, the trend of participating in the global
value chain is the shift from participation in simple, low value-added production to ones which have
higher added value like R&D, design, marketing, distribution ...

 Trade contribution to GDP
Ratio
of
Trade
contribution to GDP

=

Trade value
∑ GDP

x 100 (2.7)

The growth rate of trade in GDP increased steadily and continuously over a long period of time,
reflecting the positive trade development, good economy and industrialization and modernization.


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 Developing trade in association with social goals
- Number of commercial workers in the country's total labor force
Proportion of commercial
labor in total labor

=

Number of commercial workers
Total national labor

x 100 (2.8)

- Commercial labor income over the average labor income of the whole country
The average income of a worker in the trade is the total amount of money and items value of
labor earned in the trade, averaged over a given period, reflecting the living standard of the employee,
the real business status of enterprises, is the basis for making trade policies.

 Trade development is associated with environmental protection
Criteria for assessing the trade-oriented sustainable development in terms of environment are the
level of non-renewable resources exploitation and use, expressed through the ratio of non-renewable
resources export to GDP (Antoni). 2005).
Ratio of Export non-renewable
resources/GDP

=

Export non-renewable resources
∑ GDP


x 100% (2.9)

In addition, policies to promote trade and environmental protection also reflect trade-oriented
sustainable development such as the state's ability to control the environment for trade activities, and
awareness of business about environment ...
1.2.2. Factors affecting trade-oriented sustainable development
1.2.2.1 Group of factors relating to the economic development model
The economic growth model has a guiding role for economic development strategies in general
and trade development in particular at different stages. Commercial laws, policies and institutions
directly affect trade-oriented sustainable development, which requires each country to develop a
reasonable trade development strategy and suitable plan to the economy in the context of trade
liberalization and international integration.
1.2.2.2 Group of factors relating to globalization and trade liberalization
Urs Zollinger et al (2007) believed that globalization positively affects trade-oriented sustainable
development.
a. Labor: UNCED (1992) stated that man is the center of all development; all development is directed
to the man. In the context of globalization and international integration, fierce competition, the victory
will belong to countries with high-quality labor, a favorable legal environment for investment, and a
stable political-social environment.
b. Science and technology. Sharon Beder (1994) argued that science and technology help continuous
economic growth in a finite world through finding new sources or providing alternatives, reusing
resources effectively most.
c. Competitiveness of the business. Liu Ligang (2001) argued that competitiveness is one of the factors
affecting trade-oriented sustainable development. According to United Nations (2015), competition
helps businesses improve efficiency, promote innovation, and improve products quality.


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1.3. INTERNATIONAL EXPERIENCE AND LESSONS LEARNED FOR VIETNAM ON TRADEORIENTED SUSTAINABLE DEVELOPMENT
From the experiences of other countries on combining trade and environmental policies, some

lessons for Vietnam can be drawn as follows:
Firstly, it is to preserve an open market economy model and regional and international economic
integration based on export growth of processed food and manufacturing industries on the basis of
promoting positive comparative advantages of the country.
Secondly, it is to adjust the structure of the economic sector in the direction of "shortening",
moving from the structure of development of labor-intensive industries to those with high capital and
advanced technology, which are capable of coping with the process of regional and international
economic integration.
Thirdly, it is to identify obviously the important position of the agricultural sector, and then
taking agriculture as a starting point to develop the entire national economy.
Fourthly, it is to proactively implement international commitments on tariffs, reduce technical
barriers, restrictions, bans and licensing on imported goods to implement a trade liberalization policy in
combination with reasonable protection.
Fifthly, it is necessary to plan policies of the national economic sector in the direction of effective
internal and external resources exploitation, which is suitable to the integration process and the regional
and global economic transformation. .
Sixthly, it is to implement macroeconomic stability, provide good infrastructure, and create a
clear, consistent and equal legal environment for all economic sectors in business activities.


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Chapter 2. ANALYSIS AND EVALUATION OF CURRENT STATUS OF TRADE-ORIENTED
SUSTAINABLE DEVELOPMENT IN VIETNAM IN THE CONTEXT OF INTERNATIONAL
INTEGRATION TODAY
2.1. OVERVIEW OF THE CURRENT STATUS OF TRADE DEVELOPMENT OF VIETNAM IN
THE CONTEXT OF INTERNATIONAL INTEGRATION TODAY
2.1.1. Overview of international integration process in Vietnam
International integration is a major policy of the Party and Government, and is the central focus
of the country's renovation. As of February 2020, Vietnam has participated in 16 bilateral and

multilateral FTAs (12 FTAs are in effect, 1 FTA was signed but has not yet taken effect, 3 FTAs are
under negotiation). The total number of partners having FTA with Vietnam is 21 countries. If 16 FTAs
are in force, the total number of partners will increase to 57 countries. Vietnam's participation in WTO
and new-generation FTA marks two waves of Vietnam's international integration.
As a result of the steps of integration, the Vietnamese economy has become an open economy,
with a relatively strong level of liberalization, the business environment and economic institutions of
Vietnam are getting more compatible to the common world practice and basic market economy
standards. Vietnam's economy has achieved a much higher growth rate than that of pre-renovation
period. In 2019, Vietnam's GDP increased by 7.02%. The international integration has put pressure on
Vietnam to finalize the domestic policy and legal framework on economics, economic institutions as
well as economy operating models according to world standards.
2.1.2. Current situation of trade development in the context of Vietnam's international
integration
2.1.2.1 Current status of Vietnam's domestic trade development in the context of international
integration
Domestic trade plays a particularly important role for sustainable economic development,
especially in the context of Vietnam building a socialist-oriented market economy and becoming
increasingly involved in international integration. Vietnam has formed a unified, stable and smooth
domestic market throughout the country and taken more proactive part in the trend of international
integration. In addition, international integration contributes the emergence and rapid development of
advanced and modern business methods and trade types (supermarkets, trade centers, shopping centers
etc). The globalization of import taxes has led to a rapid increase in the source of imports to Vietnam
from other countries with low prices, quality and abundant models. This will put competitive pressure
on domestic production, businesses and Vietnamese farmers. Agricultural products will be the most
vulnerable in international integration.
2.1.2.2 Current situation of Vietnam's development of import and export trade in the context of
international integration
The two waves of international integration are the turning point marking Vietnam's active and
proactive participation in global trade. Import and export trade has not only contributed positively to



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economic growth but also created important changes to domestic production, contributed to economic
restructuring, industrialization and modernization. The growth quality has not shown sustainability, the
trend of industrialization and modernization. Exports are mainly made in low-skilled, labor-intensive
and low value-added industries and at low positions in the global value chain.
2.2. ANALYSIS OF THE STATUS OF TRADE-ORIENDTED SUSTAINABLE TRADE
DEVELOPMENT IN THE CONTEXT OF INTERNATIONAL INTEGRATION OF VIETNAM
2.2.1 Current status of trade-oriented sustainable development scale
2.2.1.1 Growth of gross retail sales of goods
The total circulation of retail goods in Vietnam has continuously increased over the years from
1995 up to now, making a positive contribution to the goods exchange and circulation in the domestic
market, which increasingly meets the demand of consumption of people. The gross retail sales of goods
in 2019 reached 3,751,335 billion VND.
2.2.1.2 Growth rate of goods export-import turnover
Source: General Statistics Office (2020)
Figure 2.5: Vietnam's trade balance between 1995 - 2019
The year off 2019 is the 4th consecutive year that Vietnam has reached a trade surplus, which
creates momentum for the goal of improving the trade balance in a positive way. Vietnam's exports
increased by 8.1% in 2019 which was mainly resulted by a sharp increase of electronic exports. This
reflects Vietnam's position with the world as well as its effectiveness in the state's trade regulation
strategy.
2.2.2 Actual situation of trade-oriented sustainable development structure
2.2.2.1 Export and import structure by commodity group
The structure of export goods of Vietnam has a clear shift towards reducing the proportion of
raw and semi-processed goods, gradually increasing the proportion of processed and manufactured
goods. From 2011 to date, the structure of heavy industrial goods and minerals accounted for the
highest proportion of total exports, due to the sudden increase in the number of mobile phones, spare
parts. most of which are from FDI sector with potential for unsustainable development because of
exports of low value-added products. The structure of imports of goods moved in a positive direction,

though it was not significant. The structure of Vietnam's imported goods has not yet focused on the
core of sustainable development.
2.2.2.1 Structure of export and import according to standard international trade classification
(SITC)
The structure of Vietnam's export goods has tended to gradually reduce the proportion of raw or
newly-processed goods. The structure of import goods of Vietnam in terms of foreign trade standards
did not change much. The import value of goods for assembly activities accounts for a high proportion
in the export turnover of goods etc. In other words, an increase in exports means an increase in imports.
2.2.2.3 Export and import structure by market


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Following the increasingly extensive international integration, Vietnam's export and import
markets have been increasingly expanded and diversified. The structure of Vietnamese export partners
is quite uniform and stable, except for Japan, which tends to decrease. The structure of Vietnam's
import goods market has shifted in a positive direction but is still slow. In 2019, six countries and
regions above accounted for 80.2% of Vietnam's total import turnover.
2.2.3 Actual quality of trade development towards sustainability
2.2.3.1 Participating in the global value chain
Trade in Vietnam has just joined the price-based value chain without investing in human
resources and technology to participate in quality- and productivity-based value chains. Therefore, in
order to gain greater value in the global value chain, Vietnam needs to overcome production, assembly
stages and invest more in pre-production stages such as research, development and design etc. or postproduction stages such as marketing, distribution etc.
2.2.3.2 Trade contribution to GDP
In the period 1995-2019, Vietnam trade value tended to increase steadily in the last years of the
study period. Trade has contributed to the overall economic growth of Vietnam. However, taking a
closer look, it can be seen that basic GDP and export growth was dependent on the foreign invested
sector. The domestic economic sector has continuously experienced large trade deficits while the
foreign invested economic sector had a surplus. This shows the current unsustainability in trade
development in Vietnam today which leads to the risk of the economy being dependent on FDI and the

limited use of opportunities from integration.
2.2.3.3. Trade's contribution to environmental protection
During the research period, trade development has contributed to the maintenance, biological
development and environmental protection, especially in the context of international integration.
However, trade development entails environmental pollution problems, typically air pollution.
Especially, small-scale mining and processing activities are quite common in Vietnam. Increasing
export of timber and wood products has narrowed the area of natural forests and the quality of forests
has not improved. Illegal logging is the cause of reduced forest area.
2.2.3.4 Trade's contribution to poverty reduction goals
Increasing commercial scale will create more jobs for society. Thanks to the continuous growth
of trade in the period 1995-2019, the rate of poor households decreased rapidly, from 37.4% in 1998 to
less than 4% in 2019. The rapid increase in trade and export of goods has contributed to increasing
GDP, thereby increasing per capita income. In general, an increase in the income of commercial labor
creates a source of encouragement for commercial workers to improve their lives.
2.2.4 Current situation of trade-oriented sustainable development policies in the context of
Vietnam's international integration
- Commodity policy: The policy of managing essential goods, goods quality, the policy of
national branding and the protection of consumers' interests.
- Merchant policy


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- Market policies: Policies for domestic trade development, policies on import and export trade
development, tariffs policies, quantitative restrictions, tariff quotas and trade remedy policies
- Policies on investment and development of trade infrastructure
2.2.5 Analysis of the results of the impact of factors affecting trade-oriented sustainable
development in Vietnam in the context of international integration
2.2.5.1 Research model
Symbols: ∆ is a symbol for stopping variables; t-i, t-j, t-k are the latencies of the study
variables, respectively

2.2.5.2. Regression analysis results

 The result of regression analysis with the dependent variable is the ratio of resource exports to GDP
(XKTN)
With two tests of auto-correlation and variance are satisfactory (p-value of both tests is greater
than 0.05), the model is reliable to analyze and evaluate the influence of the factors on resource export.
The results of regression analysis through the ARDL model show that GDP, ICOR, FTA have a
negative effect on resource exports in the short term (negative beta and p-value are less than 0.05). This
result indicates that if one of the factors of GDP, ICRO or FTA increases, the rate of resource export
will decrease and vice versa. In the long run, the Openess, FTA and GCI factors have an opposite effect
on the ratio of resource exports. This result shows that the long-term strategy for changing the
proportion of resource exports should focus on OPENESS, FTA and GCI because GDP or ICOR factors
only have short-term effects.
Private economic growth factors GE_PRIVATE, the ratio of labor in agriculture (LB_AGRI) have
a positive impact on the ratio of resource exports in the short term (positive beta and p-value are less
than 0.05). However, in the long term, only the proportion of labor in agriculture has a positive effect
on the ratio of resource exports.

 The result of regression analysis with the dependent variable is LB
The analysis results for the dependent variable LB show that in both short and long term, ICOR,
OPeness have a positive effect on LB labor ratio (positive beta and p-value are less than 0.05). In the
short term, an increase in ICRO or Openess increases the rate of LB labor and vice versa
The growth factors in the private sector GE_PRIVATE, FDI have an opposite effect on the ratio
of short-term labor LB (negative beta and p-value are less than 0.05). However, in the long term, only
FTA has the opposite effect on LB labor rate (positive long-term coefficient and p-value are less than
0.05).

 Regression analysis results with the dependent variable TM
According to the quantitative results of the coefficients (DPGDP, ∆ICOR, ∆GE_PRIVATE,
∆OPENESS, ∆FDI, ∆LB_AGRI), all factors have a positive effect on the contribution of trade in GDP



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and reflect the positive impacts on the economy in the context of international integration and in
accordance with the reality of sustainable trade development in Vietnam. The results of the quantitative
model and the ∆GCI variable coefficient (global competitiveness index) do not explain the sustainable
development of trade in Vietnam in the research sample as expected.
Quantitative results of the coefficients are consistent with the current situation of sustainable
trade development in Vietnam.
2.3. EVALUATION THE SITUATION OF TRADE-ORIENTED SUSTAINABLE
DEVELOPMENT IN THE CONTEXT OF INTERNATIONAL INTEGRATION OF VIETNAM
2.3.1. Successes and limitations of trade development towards sustainability in the context
of Vietnam's international integration
2.3.1.1 Successes
Firstly, the development of trade has enhanced the economy scale.
Secondly, the import and export of goods has been expanded and maintained a high growth rate
for many years.
Thirdly, the structure of export and import markets has been increasingly expanded and
diversified, the structure of export markets has gradually shifted towards positive direction.
Fourthly, trade has significantly contributed to job creation, poverty reduction, raising workers'
incomes and improving social security, helping to ensure more harmonious socio-economic and
environmental goals in the trade-oriented sustainable development.
Fifthly, the system of policies to encourage and expand bilateral and multilateral cooperation
relations has been improving market access conditions for businesses to expand markets, ensuring
import demand materials, equipment and technology.
2.3.1.2 Limitations
Firstly, the domestic trade market is facing with difficulties and challenges.
Second, the structure of goods according to the level of processing lacks sustainability, mainly
developing in width, not focusing on development in depth.
Third, the balance of exports and imports by market is increasingly negative, typically in the

trade balance with major trading partners.
Fourth, the structure of the economic component in the export of goods is still largely dependent
on the FDI sector.
Fifth, the system of trade policies still has some limitations.
Sixthly, the increasing risk of environmental pollution from the outside or transnational
environmental pollution from the process of trade liberalization and international integration.
Seventhly, in the process of international integration and trade liberalization, the inequality, the
gap between rich and poor is increased, and at the same time affects tje labor mobility and the put
enormous pressure of population aging on the social security system of nations.


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2.3.2. Cause of the limitations of trade-oriented sustainable development in the context of
international integration of Vietnam
Firstly, trade-oriented sustainable development is a policy that requires consistency and unity
from the central to local levels, industries and enterprises.
Second, the institutions and trade policies still have many shortcomings and have not met the
reality of international integration.
Thirdly, Vietnam passively joins international commitments, especially the new generation
FTAs without clear strategy, readiness and good preparation.
Fourthly, the weakness of infrastructure and supporting industries has led to the consequence
that a lot of industries rely heavily on imports, are passive in production with low added value etc.
Fifth, the number and qualification of commercial labor force has not yet met the requirements.
Sixthly, investment resources for trade development are facing many difficulties and fail to meet
the development requirements.
Seventh, limitations on the capacity to enforce environmental regulations, especially in
industrial zones, mining, aquaculture areas.

Chapter 3. MAJOR POINTS AND SOLUTIONS FOR TRADE-ORIENTED
SUSTAINABLE DEVELOPMENT IN THE CONTEXT OF INTERNATIONAL

INTEGRATION OF VIETNAM TO 2025 AND THE FOLLOWING YEARS
3.1. POINTS AND ORIENTATIONS FOR TRADE-ORIENTED SUSTAINABLE DEVELOPMENT
IN THE CONTEXT OF INTERNATIONAL INTEGRATION OF VIETNAM TILL 2025 AND
FOLLOWING YEARS
3.1.1. Forecasts of trade development in the context of Vietnam international integration up to
2025 and following years
3.1.1.1 Forecast on domestic trade
Forecast of domestic trade in 2025 will reach over VND 700 trillion, contributing about 15.5% to
GDP.
a. Forecast of retail market


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Regarding population size: population is 96,462,106 million people in 2019, the population
growth rate is forecast at about 1% / year and reaches 100 million by 2025, of which the largest
consumption group is 22 -55 years old, accounting for over 70% of the population.
In terms of income and purchasing power: Net income per household is projected to increase by
more than 42% by 2025. Total household expenditure is forecast to increase by 50% by 2025,
according to Fitch Solutions.
b. About buying methods
Under the impact of modern science and technology revolution, e-commerce is expected to
develop strongly in the coming time. E-commerce with outstanding features such as saving time,
trading costs, expanding opportunities to enter markets, stimulating consumption, etc. facilitates global
trade development in the context of integration international and extensive globalization today.
c. Trends in participating in the goods supply chain, linking circulation with production,
processing and forming goods supply chains.
3.1.1.2. Forecast of import and export trade
Exports are forecast to continue to grow in 2020, leading to an increase in imports, especially in
Vietnam's industries that rely on importing raw materials and machinery from foreign countries. Some
import and export trade trends are forecast as follows:

a. Opportunities for development of export-import trade of Vietnam from free trade agreements
Globalization and regionalization continue to have a profound impact on trade development and
trade liberalization. The process of international integration and the explosion of regional, bilateral and
multilateral free trade agreements, especially the generation of new generation FTAs, continue to link
the process of cooperation and integration. manufacturing, promoting countries to participate in global
value chains. It is forecasted that in the coming time, the implementation of new generation FTAs such
as CPTPP, EVFTA will create a new wave of investment in Vietnam.
b. Opportunities from trade war between America and China
The US-China trade war has opened Vietnam an opportunity to expand its export markets.
Chinese-made goods that are subject to high taxation will create opportunities for Vietnam to expand its
export of similar products to the US. Vietnamese businesses have the opportunity to buy raw materials,
components and spare parts at low prices, thereby increasing the competitiveness of exported goods to
the US market, partly replacing Chinese goods.
c. The trend on application of technologies in 4.0 era
The technology revolution 4.0 has changed the way of cross-border transactions. The application
of management software will help businesses have sufficient information on foreign trade transactions,
current legal provisions for each market. This trend will reduce trade time and costs, improve product
competitiveness. At the same time, this also raises the requirement for state agencies to have sanctions
and regulations to control activities that take advantage of gaps in e-commerce.
3.1.1.3. Trend of trade-oriented sustainable development


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The trade is developed towards sustainability, environmental protection and social justice.
Therefore, the development of production, consumption, and supply sources are linked to
environmental protection goals etc.
3.1.1.4 Forecast some risks to trade-oriented sustainable development
a. Risks from political tensions: Political conflicts and trade tensions will affect investor
confidence, declining trade, industry and global production, product supply and consumption.
b. Disease risks: Epidemic outbreaks have a serious impact on trade growth and development.

The epidemic reduces investment in the economy in the short and long term, clearly affecting a lot of
industrial production fields.
3.1.2. Main viewpoints and objectives of trade-oriented sustainable development in the context of
Vietnam's international integration up to 2025 and following years
3.1.2.1 Viewpoints on trade-oriented sustainable development in the context of Vietnam international
integration up to 2025 and following years
Firstly, trade-oriented sustainable development must ensure a balance and harmony between
economic, social and environmental benefits, current and future benefits.
Secondly, trade-oriented sustainable development aiming at building an independent, autonomous
economy, taking full advantage of national comparative advantages and taking advantage of the
opportunity to gradually deepen and broaden international integration.
Thirdly, developing trade in a sustainable manner based on attracting the participation and
contribution of every level, department and sector of society.
3.1.2.2 Main objectives of trade-oriented sustainable development in the context of Vietnam's
international integration up to 2025 and following years
The overall goal to 2025 is that trade is always an important economic sector with high and stable
growth, contributing to economic restructuring towards industrialization, modernization and trade in
services. qualification, high quality.
Firstly, creating a competitive environment, developing social markets with a number of
economic sectors, participating within the legal framework; Maintaining price stability, especially for
essential goods affecting production and consumption; promoting the process of economic shifting
towards industrialization - modernization.
Secondly, promoting the exploitation and development of the domestic commercial market;
effectively implementing solutions to ensure supply-demand balance, linking production with
distribution of goods, strengthening links in the value chain, focusing on agricultural products. By
2025, the total retail sales of consumer goods and services will reach more than 11 million billion
VND; by 2035 about nearly 2.3 million billion. The average annual growth rate of total retail sales of
consumer goods and services will reach an average of 14.5% / year to 2035.
Thirdly, raising the growth rate of export turnover and import turnover. By 2025, the target is to
have export turnover reaching 340 billion USD and import turnover to reach about 330 billion USD.

Shifting the export structure towards increasing added value; diversifying export markets, developing


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towards new generation FTA markets; increase the proportion of processed and manufactured products,
products with a high technological and technical content, and promote the export of services.
Fourthly, trade-oriented sustainable development contributes positively to the harmony and
balance between economic growth and development, social justice and environmental protection.
3.1.3. Basic orientations for trade-oriented sustainable development in the context of Vietnam
international integration up to 2025 and following years
Firstly, strengthening the relationship between domestic and international trade development.
Secondly, developing domestic trade towards building a modern wholesale and retail industry
structure, improving competitiveness, ensuring fairness and equality in the context of distribution
service market opening.
Thirdly, developing international trade in the direction of boosting exports to ensure trade
balance, strongly shifting the export structure in both goods and markets, and strengthening the
management capacity of goods, services that meet the requirements of accelerating the process of
industrialization, modernization, domestic market protection, environmental protection and sustainable
development
Fourthly, focusing on improving the supporting capacity, providing logistic services in
commercial activities.
3.2 SOME BASIC SOLUTIONS TO TRADE-ORIENTED SUSTAINABLE DEVELOPMENT IN
THE CONTEXT OF INTERNATIONAL INTEGRATION OF VIETNAM TO 2025 AND NEXT
YEARS
3.2.1 General solutions for Trade-oriented sustainable development in the context of international
integration in Vietnam
3.2.1.1 Trade-oriented sustainable development with economic benefits
- Make the best use of our country's comparative advantages in regional and world markets to
boost exports.
- Make full use of available resources of the country, especially labor.

-Avoiding environmental pollution and over-exploitation of natural resources caused by
promotion of import and export.
- Ensuring the positive contribution of trade activities with the goal of creating jobs and reducing
poverty.
- Minimizing risks and dependence on the outside before the fluctuations of economies and world
markets.
3.2.1.2 Trade-oriented sustainable development with environmental benefits
Firstly, finalizing the legal system of State management of environmental trade.
Secondly, building and finalizing a system of management tools to regulate commercial
activities to limit and prevent environmental pollution.


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Thirdly, raising the awareness and professional qualifications of people working in commerce
and environmental work, raising public awareness about environmental protection and observing
environmental protection regulations.
3.2.1.3 Trade-oriented sustainable development with social benefits
Firstly, taking control of demographic growth and reducing the pressure on population aging.
Secondly, developing and perfecting the social security system in a close, balanced relationship
with the development and completion of the social care system to meet the increasing demand for
service supply of people.
Thirdly, restructuring the resources to ensure social security
Fourthly, innovating and improving the leadership and management capacity in the field of
social security.
3.2.1.4 Trade-oriented sustainable development with three benefits of economic – environment – social.
Certain priorities are given to a number of industries and export-oriented production sectors that
play an active role in job creation, poverty reduction and stabilization of life, such as: Textile and
garment, processing industries, agriculture - forestry - fishery, handicrafts, etc. However, the State also
needs to strictly control exports to meet the requirements of sustainable development, such as:
Protection of rare and precious natural resources and animals and literary heritages, forest resources,

etc.
Currently, a part of the population is living below the poverty line and cannot meet basic needs of
accommodation, living, learning and essential supplies. Poverty can also lead to the indiscriminate
exploitation, wasteful and irrational use of natural resources; and also lead to the rise of society vices.
From the above facts, it is necessary to improve trade policies to support manufacturing and create jobs
for low-income people living in remote and undeveloped areas.
3.2.2. Solutions for trade-oriented sustainable development of domestic trade
3.2.2.1 Ensuring the stability of the supply and demand of goods, especially essential goods, to ensure
national food security
3.2.2.2. Ensuring the development of trade in goods in rural, mountainous and border areas etc. to
boost commodity economy, eradicate hunger and reduce poverty
3.2.2.3 Promoting consumption of domestically produced goods, Vietnamese use Vietnamese goods,
quality and standardization
- Linking circulation with production, promoting product chain link.
- Improving the quality of human resources in commerce.
- Supporting the application of scientific and technological advances.
- Some other policy directions such as continuing administrative reform; publicity, transparency
and facilitation of enterprises and business households in the process of tax declaration and payment;
3.2.2.4 Completing policies on domestic trade development to meet the requirements of sustainable
development and socialist orientation.


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Firstly, increasing the State's regulatory role in the market and commerce through the
continuation of supplementing, amending, perfecting and synchronizing the system of laws and
economic policies, renovating the organizational structure and operating mechanism of the State
management system on commerce towards the directions:
Secondly, formulating a reasonable consumption policy, which is suitable with income, balancing
savings and consumption, being scientific, civilized, healthy and at the same time environmentally
friendly.

Thirdly, shaping and reasonably structuring the models of traffic channels and entrepreneur
systems on the national scale and in each locality.
3.2.3. Solution for trade-oriented sustainable development of import and export
3.2.3.1 Ensuring the trade balance, diversifying markets, limiting dependence on a number of large
markets, well exploiting signed commitments to increase export turnover.
Firstly, the State should have policies to encourage investment in the field of manufacturing supplying raw materials in the country to replace imported sources.
Secondly, businesses need to continue to restructure exports and export markets.
Thirdly, preparing to cope with difficulties and challenges.
3.2.3.2. Focusing on import quality
Determining the structure of import goods and adjusting the volume of imports by tariffs in the
direction of prioritizing the import of supplies, equipment and modern technologies to actively serve
the production of export goods.
3.2.3.3. Focusing on improving the ability to restructure export goods
Shifting the economic structure from "raw" to "refined", in the direction of reducing the
proportion of raw and semi-processed products and quickly increasing the proportion of processed and
manufactured products in the total export turnover. Prioritizing the development of industries applying
high technology to increase sources of exports with high technology content, competitiveness and high
added value.
3.2.3.4 Improve the value of exports.
Adjusting and shifting step by step the strategic orientation from the development of production
and export of goods by width and high speed towards quality- and efficiency-focused development.
Making orientation and having initiative policies for enterprises to build and develop value chains
for highly competitive goods in the country as a premise and conditions for participation in global
value chains.
CONCLUSION
Sustainable development is becoming an inevitable global trend of countries in the world in the
context of globalization and international integration. The development of trade has contributed
positively to the process of economic growth and improved people's lives, and has a multidimensional
impact on the human environment at the same time. In particular, the need to develop trade in a