The following is an essay of his perspective and views on the topic.

Vietnam has recently clinched a bilateral agreement-in-principle with the United States – the last among the 28 countries conducting key bilateral WTO talks with Vietnam. The result is good news toward acceding to the WTO within the year.

Pleased as we are on the achievement, we have to acknowledge that integration is in fact not just a target but an instrument to develop the country, narrowing the gap between us and western countries.

Hence, when we obtain the tool, it is important that we know how to use it like a 2-sided knife, if we use it efficiently we can develop well, if not we will be surpassed.

Not all of 150 members of WTO, including neighboring countries, develop well when entering the largest worldwide integration process and some even withdrew after entry.

We should be concerned but not fear the WTO and the integration process.

WTO entry does not necessarily mean foreign investments or foreign goods flood the market and everything proceeding on a carefully calculated roadmap.

Detailed agreements cannot be divulged as we are in the negotiation process, but the government will announce them for enterprises to prepare after the multilateral round finishes.

WTO is a complex playground, with intelligence, resources and equality the rules of the game.

Independent enterprises that work on market mechanisms without privilege will develop well. But those that survive off protection of the state, carry a short-term vision and prosper off non-transparent relations will find it hard to survive.

When the Common Effective Preferential Tariff of AFTA was implemented, many worried that domestic companies would be swept aside as taxes on 6,000 goods would be slashed. But reality showed that companies grew stronger in the face of difficulty.

Over the past 15 years, we have continuously enlarged our export markets to all continents, but due to our non-WTO member status, we were subject to various disadvantages. All that is about to change with accession to the world trade body.

Some worry that the government will holdfast to key economic sectors, maintaining a key role in the economy, to the detriment of integration and development.

But the "state-owned economy" has a larger meaning, pitting the state as a ‘midwife’ for companies to develop. This role is common in other countries of the world as well.

Equitization in the water system have been implemented in Ho Chi Minh City while many electric plants’ shares are offered to public too and competition in the telecommunication is now prevalent.

Some worries that the process [privatization] has been too slow but privatization cannot be accomplished in days, and we should not think that it will hinder our integration in WTO.

HCMC, with the most number of companies nationwide, accounting for 30 percent of the gross GDP will witness the major stream of integration process.

A fierce competition in retail sector is also promised in the market of a third of the national consumption goods here.

The production and export of agricultural, forest and aquatic products will face the hardest challenges as WTO entry requires high standards of environment, hygiene, and technology while we still get on with the low ones.

An inevitable prospect of repetitive arbitrations will occur as countries will set up non-tariff barriers like quality, environment, health care to restrict our goods.

A good preparation for such prospects is needed as US will not recognize Vietnam as market economy in 12 years while most Vietnamese companies are not familiar with commercial laws.

Sometimes our negligence on legal matters in trade may lead to crippling loss.

We gave our all challenges to anticipate and prepare rather than to be afraid or leaving ourselves as the underdogs. With a good preparation, the WTO entry will be a winning chance for us.

Written by Tran Du Lich – Translated by Thanh Tuan

Source: Thanhnien News 22/05/2006