Vietnam: Pros and cons after four years in WTO

After more than four years of being in the World Trade Organization (WTO), the advantages, disadvantages for Vietnam are clear and the actual status of the country can now be assessed, said Dr Vo Tri Thanh, deputy head of the Central Institute for Economic Management in an exclusive interview with VOV reporter.

Mr Thanh added that Vietnam’s status may have been overestimated by policy makers at the time it joined the WTO.

Reporter: What lessons has Vietnam drawn after four years of WTO membership?

Mr Thanh: We have drawn many important lessons, especially related to legal and economic institutions, commodities, capital inflows, policy enforcement, selection of partners and macro-economic integration.

Along with international integration, social life has become more diversified, putting pressures on policy makers. This will require a transparent and responsible policy making process.

Reporter: There have been many ups and downs during the four years after Vietnam’s admission to WTO. Does this give us an incorrect assessment of the WTO’s impact?

Mr Thanh: Vietnam’s achievements have been attributed to three basic factors. The first factor is market-oriented reform. Second is integration at bilateral and multilateral levels like the WTO. Third factor is the country’s socio-economic stability. These factors have laid an important foundation for Vietnam to gain the great achievements it has after 25 years of its Doi Moi (Renewal) process.

It is obvious that international integration is not enough for the country’s comprehensive development. Therefore, it is very important to combine integration with macro-economic stability and reforms in the country. In my opinion, speeding up the integration process is necessary at the moment and the WTO can be considered a fundamental factor for integration and reform in Vietnam.

WTO admission has had a great impact on reform in Vietnam. Especially, the country’s WTO commitments offer good opportunities to integrate more extensively and sign more Free Trade Agreements.

In addition to the WTO, it is also important to strengthen cooperation and investment with foreign partners, especially strategic partners.

Reporter: How do you assess the shortcomings of Vietnam’s economy after four years of joining the WTO?

Mr Thanh: Vietnam was highly appreciated when it entered the WTO in 2007. There was an abundance of capital at that time and the world was flooded with an excess of liquidity, leading to a series of projects worth billions of dollars pouring into Vietnam. However, Vietnam’s capacity was overestimated, which has led to unsynchronized policies and marco-economic instability.

April 9^th, 2011

Source: vneconomynews.com