Trade Minister Truong Dinh Tuyen clarified the negative affects and challenges from the country’s WTO membership, reaffirming the overall impact will be positive, in front of National Assembly’s working session Tuesday.
All Vietnam’s multi-lateral commitments with WTO trade partners are in line with the country’s legal environment and policies of doi moi (renewal), therefore, no severe affects are expected to take place in the macroeconomic sphere, Tuyen noted.
However, the Trade Minister reiterated the toughest challenges facing the Vietnamese government ahead are to streamline administrative and legal framework and develop transparency by working and adopting appropriate and effective policies with constructive ideas from people nationwide.
Under WTO commitments, the Vietnam government will continue restructuring state-owned enterprises as well as increasing their effectiveness, creating a fair playing field for all economic sectors.
Regarding abolishing state subsidies for exports, localized contents and agricultural production, Tuyen reaffirmed this group of businesses will likely be hurt but noted the scale of impact should be limited.
“Adverse impacts of lifting state subsidies for exports, localized contents have not been defined so far,” Tuyen emphasized.
The most notable problem Vietnam business managerial staff are concerned over is the commitment to reduce import tariffs and open service sectors.
Tuyen highlighted that the securities, banking, and shipping logistics industry sectors will likely face the toughest challenges and fiercest competition from foreign rivals. However, the trade minister expressed optimism, saying “we [Vietnam] will have time to prepare in the transitional period”
The next sector sure to be affected is the agricultural sector because of small scale production with low productivity and high costs.
In contrast, the textile and garment industries will benefit from MFN tariffs in WTO member countries, no longer being restricted by quotas.
Vietnam’s export markets will expand with rising export revenues.
In the coming years, Vietnamese businesses will face thousands of lawsuits, and how to cope with this problem became a heated issue raised by mass media on the sidelines of the National Assembly’s working session.
Tuyen assured that the Vietnam government will pay attention to training international integration staff, also learning from the experience of other WTO member countries in an attempt to ensure comprehensive benefits to the country.
In the coming time, Vietnamese businesses will be exposed to thousands of lawsuits from foreign rivals, many more than now, Ha Ton Vinh, Hawaii University Prof has alerted.
Under WTO commitments, Vietnam will have to reduce import tariffs by 23 per cent on average in 5-7-year phases.
Among 10,600 categories of import tariffs for goods and services committed by Vietnam with partners, about 3,800 categories of tariffs will be slashed by committed proportions.
Vietnam was officially admitted into the WTO on November 7 this year, however, its National Assembly will need at least 30 days to ratify, then the country will be fully integrated into the global trade club.
(www.baomoi.com,
www.vneconomy.com.vn)
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