Vietnam is accelerating its negotiations for its accession to the World Trade Organisation (WTO). Therefore, recently, many seminars discussing issues after Vietnam joins WTO, and its implementation of WTO regulations, opportunities and challenges of the event, have been organised. This shows the necessity to improve Vietnamese people’s awareness of the country’s WTO accession and the organisation itself.
WTO’s objectives are to create a fair, transparent playing field for economic growth, and trade development, job creation and support for member countries’ sustainable development. Joining WTO, Vietnam will be able expand its export markets and import goods at cheap prices from other countries as WTO has cut over 40 per cent of tariff lines, on average.
One of the basis principle of WTO is most favoured nation (MFN) status, which means that when a country in the WTO grants another MFN, tariff cuts for example, MFN will be automatically applied for all member countries. This means that Vietnam will benefit from accession to the organisation, which also helps Vietnam to have mechanisms for settling trade disputes (if any).
“Which time is suitable for Vietnam’s accession to WTO is a ‘hot’ question about Vietnam’s international integration. Foreign experts said that there are similarities here with the EU, which worried much about WTO accession because of the block’s poor competitiveness. However, the block has enjoyed great benefits from its accession to WTO.
Vietnam should not wait until it is economically ready as it is unclear when its economy will be perfect and ready for the event. Furthermore, the Vietnamese economy is stable and has great competition potential. Worries about whether the economy’s competitiveness has yet become strong enough would cost Vietnam benefits from WTO accession. “Vietnam seems not to have been aware of the issue,” said an expert from the EU.
According to Professor Nguyen Duong Coc, director of the China Development Research Institute, told a recent seminar in Hanoi that before China joined WTO, up to 40 per cent of Chinese enterprises had not understand opportunities and challenges from WTO accession. In particular, they did not know about fierce price competition which took place after their country joined the organisation, their rivals and what they would have to do. Coc called for a promotion of education of the local people on Vietnam’s accession to WTO, so they would be able to cope with risks and challenges from the event.
In Vietnam, economists have several times warned of the poor knowledge of local people and enterprises, including ministries and agencies, about international integration. So far, up to 97 per cent of local enterprises don’t yet understood international integration. Per Altemberg, a senior consultant from the Swedish National Trade Committee said that he recently visited the Mekong delta to give Vietnamese farmers knowledge about WTO but it was hard to help them understand. Only when he took the image of a coconut to talk about WTO, did local farmers understand benefits from the organisation.
Altemberg said that farmers should be told simply about benefits and challenges of WTO. So far, only five countries, including Vietnam, have not joined the organisation yet. After admitting Vietnam and four other countries, the WTO is similar to a coconut to cover the whole world with many benefits. The WTO offers many benefits to those countries which have an abundant labour force and an open economy, and Vietnam possesses both.
It is important for a country such as Vietnam to prepare for accession to WTO by preparing its people to get ready and be awaren of the impacts of admission, so WTO accession could offer real benefits to the people and their country.
KimPhuong
Vietnamese
