Vietnam is a typical example of integration into the world economy, the World Bank Country Director in Vietnam Klaus Rohland told the state-run Vietnam News Agency, speaking highly of the significant achievements of the country’s doi moi (renewal) process.
“Vietnam’s transition to a market economy has gone hand-in-hand with greater international integration, and increased openness and an improved business environment have attracted a sizeable volume of FDI,” Rohland said.
The ASEAN country’s international integration has resulted in a range of legal and institutional reforms, and created incentives for restructuring of the state sector, Rohland noted, while warning of many challenges Vietnam will be exposed to in the new phase of integration with accession to the WTO, as well as potentially deeper regional and bilateral agreements.
He insisted that “the role of government policy is to ensure that competitiveness of producers is not hampered by regulatory hurdles or lack of access to key inputs at non-distorted prices, and to help mitigate the adverse impacts on those who might stand to lose.”
The Vietnamese government will also play a very important role in ensuring everybody benefits from the new wealth influx, thus pro-poor government policies and related expenditures are vital.
In raising domestic enterprise competitiveness, attracting investment towards certain sectors or poorer regions, and encouraging exports, Vietnam will have to rely on WTO-consistent instruments, he suggested.
Rohland elaborated that an early warning system involving communication from government on commitments and policies, and effective monitoring of the situation by relevant groups should be formed as soon as possible because those impacts are difficult to predict with precision.
Vietnam’s GDP increased by 7.2 per cent on average and its trade revenue rose 21.3 per cent annually in the 1995-2005 period.
(Vietnam & World Economy, VNA)
Vietnamese
