With WTO Card, Tough Tasks Await Vietnam

Vietnam now has become the 150^th official WTO member, marking one of the emerging Asian Tiger’s vibrant economic achievements fuelled by its Doi Moi (Renewal) process, however many challenging jobs requiring completion still lie ahead, State President Nguyen Minh Triet said.

 

President Triet was cited by local Liberated Saigon newspaper on the occasion of Vietnam’s officially joining the WTO, as emphasizing urgent tasks for Vietnam authorities to complete, including commitments to cut thousands of tariff categories, to clearly define how many of them will be slashed a year, not to mention the task of updating information on WTO integration.

 

Despite that, President Triet expressed his optimism about the imminent success to be made by Vietnam in the coming time.

 

Triet is most concerned about Vietnam’s timely adjustments in building and improving its legal framework in conformity with the WTO rules.

 

Meanwhile, the US Trade Representative Susan Schwab voiced strong support for Vietnam’s becoming the 150^th WTO member, seeing it as “historic” accession to the WTO and marking the beginning of a new era in the political and economic relationship between the two countries, an era witnessing expanding economic opportunities and cooperation.

 

“Vietnam’s integration into the global economy will open the doors of opportunity for people from both countries to develop closer trade ties, and will help American businesses increase exports” Schwab noted.

 

Foreign Ministry spokesman Le Dung said Vietnam joined the WTO at a ceremony in Geneva in what he called “a momentous event in the international economic integration of Vietnam.”

 

Dung also reiterated that becoming the official WTO member will help trade and foreign investments in the economically promising land of Vietnam.

 

WTO director general Pascal Lamy hailed Vietnam for its “determination, skill and experience in negotiation” and said its spirit was “what we need for the Doha round,” the stalled series of talks to free up global trade.

 

Le Dang Doanh, a senior economist at the ministry of planning and investment said this is a very important turning point, meaning Vietnam new phase of reform. It should lead to dynamic and hopeful development. Of course, as there are opportunities and there are also challenges.

 

Labor-intensive industries, Doanh noted, will benefit first in the country known for its industrious, low-wage workforce, while capital-intensive sectors would face the stiffest challenges from the entry of outside companies.

 

“Stronger competitors will come and force Vietnam to be more dynamic and there will be some sacrifices. There will be a limited number of bankruptcies,” Doanh said.

 

Today many investors tout Vietnam, which last year booked economic growth of 8.2 per cent and $9.5 billion in foreign investment, as a “China-lite.”

 

But experts warn that Vietnam must now follow through on commitments to the WTO through hundreds of new laws, from protecting the rights of foreign companies to cracking down on copyright piracy.