Study On Opportunities, Challenges And Reciprocal Strategies Of Vietnam After Joining AIIB

Asian Infrastructure Investment Bank, or AIIB is multilateral international financial institution in Asia. Designated with the objective of promoting the infrastructure development in Asia, in 2013, AⅡB was initiated by the General Secretary of the Communist Party of China, Xi Jinping and the idea attracts great concern throughout the world. The joining of the Republic of Socialist Vietnam (Vietnam) in AⅡB as its co-founding member is in line with the policies and guidelines of the Communist Party and the state of Vietnam towards proactive, positive and responsible participation in the process of international economic integration. With the intention of becoming a founding member of AⅡB as an ASEAN member, Vietnam has been constantly striving to achieve the conclusion of negotiations with AⅡB. During the negotiating process, Vietnam expresses its desire and goodwill in the building, maintaining and fostering of the fine, comprehensive relationship with China in economic, trading and investment aspects. In its economic development vision towards 2020, Vietnam has a huge demand for infrastructure development, and despite the country’s positive working capital, this is far from meeting the general requirements of development, and the country needs to attract much more foreign direct investment (FDI). Vietnam’s joining the AIIB will not only help enhance its national position and role in the international community but also create very promising opportunities for its development.This essay is based on the geo-economic theories for its theoretical foundation and on the "One Belt and One Road" (OBOR) strategy, the circumstances, connotation, operational mechanisms, binding rules and relevant relationships after the birth of AⅡB as its starting point. And through an analysis of the current state and the demand for infrastructure development in Vietnam, it presents an in-depth insight into the opportunities brought by Vietnam’s joining AIIB in solving some national-level issues such as capital for infrastructural development, the acceleration of infrastructural construction, expanding of the domestic market for increases of employment in Vietnam, etc. The essay also gives an objective assessment of the challenges that Vietnam may face domestically, namely investment risks in infrastructural construction among different regions, complicated administrative procedures, economic offenses, transparency in investment categories and some other issues and internationally, namely competition in the use of capital funds among AILB member countries, the level of advancement of science and technology from developed countries. Considering the opportunities and challenges confronting Vietnam after its joining the Bank, the essay also puts forward some strategies regarding the strengthening of strategist decisions, more reasonable planning of infrastructural construction, implementation of key talents strategy, scientific planning of the system for foreign capital attraction and gives some forecasts of future prospects.