Vietnam summit no talkfest, says Key

The East Asia Summit is more than a talkfest and has already delivered billions of dollars worth of tangible benefits for New Zealand, Prime Minister John Key says.

Key arrived in Viet Nam's commercial centre Ho Chi Minh City yesterday ahead of the summit in capital Hanoi tomorrow.

Speaking to reporters en route, Key said the annual summit had proved extremely beneficial to New Zealand in the five years since it began.

It had paved the way for the Asean Australia New Zealand Free Trade Agreement (Aanzfta), "and we shouldn't underestimate that".

"Exports in that sector from New Zealand's point of view total $6.2 billion so it's an important market".

The International Monetary Fund today forecast New Zealand's economy would grow by about 3 per cent this year and next as continued strong growth in Asia - particularly Australia and China - supported demand for New Zealand exports.

Meanwhile Aanzfta, which came into force early this year, has helped drive interest in co-signatory Viet Nam as a destination for New Zealand businesses.

This morning in Ho Chi Minh City, Key spends time with New Zealand businesses tapping into Viet Nam's fast growing aviation and international education sectors.

Tomorrow, as well as attending the full East Asia Summit (EAS), Mr Key will become the first New Zealand Prime Minister to engage in a separate formal talks with the leaders of the Asean nations at the core of the EAS.

The Asean New Zealand Commemorative Summit held later in the day marks 35 years since New Zealand entered into official talks with Asean.

Key also has official face to face talks with Australian Prime Minister Julia Gillard, Japanese Prime Minister Naoto Kan and Philippines President Benigno Aquino III.

While Key believes New Zealand's economic future lies largely in trade with the large emerging Asian economies represented at the summit, he yesterday said New Zealand has much to offer them too.

"There's a strong argument to say that China elected to do an FTA with New Zealand as the first developed country because it provided a blueprint for it to allow it to expand its trading operations and organisations around the world. So in that respect I think we bring a lot to the table."