Vietnam agreed to scrap plans to inject US$4bil into development of its textile and garment industry immediately after joining WTO.

America agreed to normalize trade with Vietnam as a partner country 12 years after Vietnam is admitted to the WTO. This period is shorter than that applied to China by the US.

Four urgent requirements

Mr Le Dinh Luong Head of the negotiation team for Vietnam - US bilateral trade agreement

1. Declaring all commitments that Vietnam has signed to with the US regarding Vietnamese enterprises, then preparing business plans for the nation’s activities after being granted membership.

2. Making remarks to give full analysis on all commitments to clarify possible opportunities and challenges.

3. Carefully study the legal system to amend any regulations which could be contradictory to new commitments and agreements.

4. Encouraging people to discuss the best options for seizing opportunities to speed up reforms and integration.

Main challenges

Mr Le Dang Doanh – Economist: The new challenges for us lie in increased reform, creation of a fair business environment and improving the economy's competitiveness.

Mr Vu Tien Loc - President of Vietnam Chamber of Commerce and Industry: Joining the WTO will bring up a number of opportunities for Vietnamese enterprises to further enter world markets and find new markets for export. However there will be a great many challenges to tackle, such as stiffer business competition as we have to lift the tax barriers, end subsidies and open the service market for foreign companies.

Mr Luong Ngoc Bich - Lawyer, DC Law firm: We need to change our thinking about business administration. For example, now many Vietnamese companies are running large scale campaigns to advertise and develop brands. This is a good thing, but we need to invest more in increased product quality. Frankly, we have been exporting a lot, but most of our exports are raw materials, the added value is still not great, and the competitiveness of those products is weak.

Laws and mechanism to run the economy

We need to identify the problems with our economy, because it is run differently from other economies in the world.

Ms Pham Chi Lan - The PM's advisor: The government is committed to compiling new laws that are in conformity with its commitments to the international community. But in fact we have not always been successful in doing that. In compiling new laws, analysts have been undecided on whether to give people more rights or to tighten state control. In that context, we may see reforms in legal administration, but these fall far short of meeting the demands of freedom.

Attracting FDI: capital and technology inflows may bring risks

Mr Michael Smith, President cum General Director of HSBC bank: Developing a strong capital market in Vietnam is most urgent and important for the country to avoid risks brought by capital inflows.

Mr Markus Cornaro EC Ambassador to Vietnam: Vietnam needs to diversify its investment capital. It is necessary for the country to gain more foreign investor confidence to attract more investment into new areas of product manufacturing and services. The ambassador also warned the country that not all technologies brought in Vietnam are high tech.

Prof Martin Schwarzt of Virginia University, US: The country should do what more advance developed countries are doing, but not what less developed countries are good at. I want to emphasize that Vietnamese are poor not because that they are lazy. They are very hard working. The problem is in the ineffectiveness of labour and unprofitable work.

12 important landmarks

Jan 4th 1995: Vietnam files application for WTO membership.

Jan 31st 1995: A WTO working group which is in charge of procedures to admit Vietnam to the organization forms.

September 1996: Vietnam files a diplomatic memorandum on external economic relations.

From March to August 1998: Vietnam answers questions explaining its policies, its management and policy implementation of the country.

From July 1998 - September 15th 2005: The working group organises 10 meetings to assess the country's preparation.

Since Jan 2002: Vietnam conducts bilateral negotiations with different countries regarding opening markets for products and services.

May 2003: The working group says Vietnam needs to make major steps ahead.

Dec 2003: The working group clarifies the main points of Vietnam's report on joining the WTO.

June 2004: 63 WTO country members praise Vietnam for its efforts toward commitments to open its market for products and services.

May 2005: The working group says Vietnam should complete negotiations with other WTO members within a few months if it wishes to join the organisation by December 2005.

September 2005: Vietnam notes landmark when the working group makes its first assessment of Vietnam's application to join WTO.

March 27th 2006: The working group says Vietnam's bid for WTO membership has entered its final stage.

Source: Vietnam Net