Vietnam membership of the World Trade Organization (WTO) is likely to create a large number of difficulties for domestic enterprise in the next four to five years, believes Ambassador of Vietnam to the WTO Ngo Quang Xuan.
“Our products will have to play against competitions from all members of the world largest trade club or even we have to “sacrifice” some industries” commented the official, who had earlier attended almost all the negotiations rounds of Vietnam’s bid to join the WTO.
Xuan said after becoming a WTO member, a flow of cheap goods from the outside will flood Vietnam’s market, therefore, domestic producers must loosen their market share, especially in the first phase.
Xuan cited practical experiences from China where thousands of Chinese small and medium enterprises went bankrupted after the country joined the World Trade Organization leading to the unemployment of 16 million people. However, China’s economy is booming, he stressed. “Whether or not our business people are able to grow is depends on our capability and government,” he said.
Besides, Xuan noted Vietnamese enterprises would continue facing anti-duping suits because of limited experience in international business, additionally, the country will have to wait an additional 12 years to be viewed as a market-oriented economy by its partners.
Xuan urged that Vietnam needs to quickly train a number of high-quality lawyers to consult enterprise in the post-WTO period to avoid mistake, stating that the government also has to realize the commitments its made over the negotiation table to entrepreneurs.
The official revealed that Vietnam will open its market in the fields of banking, finance, telecommunication and also footwear, textile & garment and agriculture soon to meet the requirement of WTO membership.
“Coffee products will face hash competition, especially from Latin America,” he warned.
Regarding the market for beef in which the public believes that the Vietnamese negotiators had made excessive concessions, the official explained that in the negotiation process Vietnam has to reduce taxes in various areas and not only tax on beef.
“In my opinion, in negotiations each side has to losses one part and gain another part. In general it is “win-win” agreement,” he added.
Tomorrow, Vietnam will officially sign a pack with its last negotiating partner the US in Ho Chi Minh City. Vietnam and the US had initially wrapped up the negotiation process on May 13 in Washington after 12 rounds of talks.
The Southeast Asian Country would gain WTO membership before the APEC Summit in September if it receives the Permanent Normal Trade Relation (PNTR) status from the US congress before August and concludes the multilateral talk in Geneva in upcoming July.
Observers say it is only inches away from the WTO ticket, because the July multilateral discussions are not threatening round of talks for Vietnam and especially the majority of the US congress shows their support for Vietnam.
Youth, Vietnam Panorama
Vietnamese
