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MANILA, May 22 -- The World Economic Forum (WEF) declared Thursday that it does not take sides on the territorial disputes over the South China Sea.

Klaus Schwab, WEF founder and executive chairman, made the statement after Vietnamese Prime Minister Nguyen Tan Dung used the WEF on East Asia being held in Manila to air Vietnam's sentiment against China's actions in the South China Sea.

"The World Economic Forum is a neutral organization and we don' t take stands," he said.

But on behalf of WEF, Schwab called on all parties involved to continue with the dialogue to resolve the issue.

"I appeal, on behalf of the World Economic Forum, to all parties to resort to discussions and dialogue to resolve the situation, which has potential to create a situation we all do not want to have, if you look at our future economically and politically," he said.

"We are living in a global world, we need global partnerships, we need global peace," he added.