In a rare interview with the western press, Vietnam Prime Minister Nguyen Tan Dung discusses the country's economic model with CNN's Andrew Stevens and its aims to become a manufacturing hub in South East Asia.

Please find below the interview transcript and attached picture for your use.  

The interview can be watched online at:
http://edition.cnn.com/video/#/video/world/2010/06/14/stevens.pm.nguyen.int.cnn?iref=allsearch

Should you be interested in leveraging the power of CNN's award-winning video and print articles on your website or publication, please contact Ann Chu at +852-3128-3630 or ann.chu@cnn.com

** Mandatory credit for use of material to CNN International.

ANDREW STEVENS, CNN ANCHOR AND CORRESPONDENT:   Prime Minister we shall begin. First of all, thank you for your time. You are a busy man obviously and we do appreciate you making the effort to see CNN, thank you.

My first question to you is, I'd like you to explain to CNN, the economic model of Vietnam. For example, China calls itself capitalism with Chinese characteristics. How would you describe the Vietnamese economics model?

NGUYEN TAN DUNG, PRIME MINISTER OF VIETNAM: I might describe the overall model of economic development in Vietnam as building socialism around a market economy. But the ultimate goal is for Vietnam having a wealthy people, strong country, just, democratic and advanced society.

STEVENS: Vietnam is becoming a more attractive country for manufacturers. Do you see Vietnam becoming like China - a manufacturing base for the global economy?

NGUYEN: Vietnam is becoming an attractive destination for investors for the following reasons:

First of all, Vietnam is already having a market economy, enjoying a rather high growth. For more than 25 years, our annual growth is averaging between seven to eight percent.

Secondly, the market economy in Vietnam is integrating itself deeper and broader into the world economy and we are fully observing our international commitments. As such, we are creating and improving investment environment, making it more transparent and open by the day

Thirdly, Vietnam always enjoyed socio-political stability. This stability is based on the broader-linked democracy in the country with the rise of the people respected fuller and fuller. The people of Vietnam are surely their full confidence and trust into the broad future, into the policies of the party and state.

Next reason is the population of Vietnam is rather young and I might say that our population is at its golden age. The population of Vietnam is rather big, nearly 90 million now and in the very not far future, it will become 100 million. That creates a very young, skilled and abundant workforce, also creating a very good domestic market. We are now a member of the ASEAN free trade area, and we are also having relationships with lead markets like China, Republic of Korea and other countries.

The next thing is that we are having a strategy for sustainable development.

Then we are striving to attain a more sustainable and higher growth recovery. In 2010 our growth is projected to be between 6.5 and 7 percent and from 2011 to 2020 our growth is expected to be between 7 to 8 percent, and along with such economic recovery, we are also shifting our economic growth paradigm from horizontal development to a more harmonious horizontal and vertical development, so as to improve both the quantity and quality of development, higher efficiency, higher competence and better sustainable development

And to that end we are conducting the following strategies:

First we shall mobilize and maximize at the highest level, our inner strength, while at the same time availing ourselves the excellent assistance and support in terms of capital, technology, markets and others.

And as you mentioned earlier, Vietnam is striving to become a manufacturing center with a better position in developing change in the region and the world.

And at the same time, we are trying to become a service hub for ASEAN and the greater sub-region.

Secondly, we will be consistent in improving the institution of the market economy in Vietnam, while at the same time integrating ourselves deeper and broader into the world, observing in totality our international commitment.

Thirdly, we will maximize all our resources from the government, the private sector and all economic sectors in the country with the assistance and support from international financial institutions, the ODA from our friends and donors to further improve the economic infrastructure, first and foremost, in transport and rural development.

Then we will focus more on developing our human resources especially highly skilled and highly qualified human resources.

And along with economic development, we are observing in fuller the democracy and social progress in the country, continued with our poverty reduction programs and environmental protection plans, in order to ensure sustainable development in the country.

And we will pay more attention to improving the social safety net, as well as social welfare.

We will apply comprehensive measures to ensure social and political stability in the country because this is a very important condition for sustainable development here.

The next thing which is very important here is our foreign policy. We'll be very consistent with the foreign policy of independence and sovereignty, multi-lateralization and diversification of our external ties. Vietnam always wants to be friends and reliable partners of all members of the international community. We are striving to be an active, constructive and responsible member of the international community.

So these are the key directions, goals and measures that we will be applying in the next ten years, in order to develop our own model of development.

STEVENS: Thank you Prime Minister. You mentioned about wanting to become a manufacturing base here, and many business people that I have spoken to over the last couple of weeks over here talk about two problems. One problem in particular is infrastructure. Infrastructure needs to be improved for the manufacturing base to grow, this is what people tell me. And another concern that many people have is corruption in businesses. How do you propose to tackle those two issues?

NGUYEN: The goal of becoming a manufacturing center in the world production chain is one of our goals.

And to that end, we still have many things to do.

And among them, we are striving to mobilize all possible resources from the government, from the private sector, from the international financial institutions, from the ODA and our donors, and we pay much attention to the development of the public-private partnerships in order to improve our infrastructure, first and foremost, in the industry of transport and energy to serve development.

And secondly as I told you earlier, we are struggling to future improve and perfect the institutions of the market economy in Vietnam, integrating ourselves deeper and broader into the world and seriously observe all our integration commitments and international commitments in order to create a more transparent, open, business and investment environment. With such an environment developing in our country, I'm sure that corruption will be pushed back. At the same time, we will also focus more on the administrative reform, which will allow more a transparent environment for everyone. That will be a very good condition for Vietnam to fight corruption. You know that corruption does not only exist in Vietnam but in many other countries and the only way to fight it is to have a transparent, open environment.

At the same time, we are creating transparent environment for all people, everyone in the society to participate in the fight against corruption. We highly value the role of the people in the detection and fight against corruption.

And at the same time, we will do our best to build the capacity four our public servants, to help them follow a good code of conduct to become real public servants of the people.

At the same time, along with economic development, we will do our best to improve the skills for our public servants.

And at the same time, we will punish more severely and in a more transparent manner, all corrupt acts.

And to become really a manufacturing centre in the world chain of production, one more important issue is to train the highly skilled, qualified workforce.

And to protect the socio-political stability in Vietnam to help create a better environment for business and development.

STEVENS:  Prime Minister Sir, Thank you for your time. Thank you for your full and frank answers.

- END -

**Mandatory credit for use of material to CNN International.