The World Trade Organisation (WTO) will bring new technology to Vietnam to stimulate its economy, but the country should pay due attention to human resources development and education, as well as looking for partnerships to meet the requirements of the integration process.

Joining the World Trade Organisation (WTO) is one of the important solutions for Vietnam to accelerate economic reform comprehensively and realise the target of national industrialisation and modernisation, said delegates at a workshop held by VOV in Hanoi on August 4.

Leading economists and businesses shared the view that Vietnam will have the chance to expand its export markets, attract more foreign investment, generate more jobs and boost economic growth. The country will be treated equally, particularly in trade disputes in line with WTO regulations.

“The WTO will bring new technology to Vietnam to stimulate its economy, but the country should pay due attention to human resources development and education, as well as looking for partnerships to meet the requirements of the integration process,” they said.

However, Vietnam will also have to open its market for commodities from other WTO members, which poses a great challenge to domestic enterprises.

“Vietnam will no longer be the market of domestic enterprises themselves,” said Dr Le Dang Doanh, a senior economic advisor to the Ministry of Planning and Investment. “Monopoly sectors such as telecommunications, electricity and banking will have to open the door wider to welcome foreign partners. Leading global retail groups will also enter Vietnam.”

Mr Doanh pointed out the fact that not all businesses are provided with adequate information about the integration process, therefore, many of them are not ready to cope with challenges. Some even think that they have achieved successful results thanks to certain relationships (through bribes for example). Such thoughts and manners will only bring to the brink of bankruptcy when Vietnam further integrates into the world, said the chief economist.

Mr Doanh advised businesses to be aware of a healthy legal environment and an equal playing field with foreign rivals.

“This is a playing field where all businesses are treated equally,” said Mr Doanh. “This requires domestic businesses to raise their competitive edge to exist and integrate effectively.”

The chief economist also pointed out several sectors which will have to face tough competition such as services, steel works and automobile manufacturing, particularly the agricultural sector.

“Without developing large-scale farming models, farmers will not be able to exist in the competitive environment,” said Mr Doanh.

He said that the Government should make public conditions of competition so that the agricultural sector has adequate time to prepare for integration.

Cao Sy Kiem, deputy head of the Central Economic Board shared Mr Doanh’s view that it is imperative to make public commitments that Vietnam and WTO members have reached during previous negotiations.

“Legal documents, particularly relating to taxation, intellectual property and finance-banking sectors, should be revised in a way so that they stick to the commitments to create favourable conditions for businesses and organisations to implement and avoid mistakes,” said Mr Kiem.

President of the Vietnam Young Entrepreneurs Phuong Huu Viet also suggested that the State issue specific instructions to help managers, businesses and people avoid getting confused during the integration process.

Vietnam’s WTO entry is drawing near. As a young entrepreneur, I think the Party, State and relevant agencies should review and draw lessons from the negotiation process to map out specific integration plans for State agencies, businesses and people as well,” said Mr Viet. “As for businesses, they must also know how to renew themselves in terms of business strategies, organisational structure, and financial capacity to adapt to the situation so that they can gain a firm foothold on the domestic and overseas markets.”