How do you assess the initial achievements Vietnam has made after being in the WTO for one year?

The year 2007 marked the effort Vietnam made in actively and initiatively implementing regulations as a WTO member.

Firstly, all ministries and sectors have paid due attention to bring into effect legislation to realize its commitments. This has helped to bolster the international community’s confidence and the determination of the Vietnamese government to take seriously its obligations as a WTO member.

Secondly, in order to take opportunities and overcome the challenges of being a WTO member, the government, ministries, sectors and localities have worked out action programs based on the fourth Central Resolution of the Communist Party of Vietnam to realize their tasks.

Thirdly, in framework of the WTO, we have negotiated with other partners who are applying to join the WTO to deal with Vietnam’s commercial interests. Vietnam has signed an agreement with Russia and the Ukraine so that all parties can recognize each other market economies and commit to opening up their markets to Vietnamese goods.

Apart from that, we are also actively taking part in the Negotiation Committees and together with committee members discussing the Doha negotiations. In the future, when Vietnam’s representative agency in Geneva is consolidated, we will have the necessary conditions to carry out various activities that are more effective and meaningful to realize Vietnam’s status as a WTO member.

According to you, what is the biggest thing Vietnam has achieved in the first year of WTO membership?

The biggest is the implementation of WTO commitments has brought an improvement in Vietnam’s business environment and it has also become more transparent, helping to effectively mobilize domestic and oversea resources for development.

Vietnam’s GDP in 2007 reached 8.5 percent and foreign investment in the country also increased dramatically, reaching over 20 billion USD and its export revenue increase by 21.5 percent, earning 48 billion USD.

These achievements are due to the determination of the government to renew management mechanisms and efforts by the ministries and sectors to reform administration and improve the business environment, especially in creating dynamic businesses.

A year is not long enough for us to evaluate the impacts of Vietnam’s admission to the WTO but the improvements in the economy during the first year of becoming a WTO member are undeniable.

What shortcomings do we need to overcome, Minister?

The first year of implementing WTO commitments had many challenges. Excess of imports over exports reached two points due to imports being higher by 1.5 times that of exports. Infrastructure including roads, ports, electricity and water supply are overloaded and have failed to meet the demand of economic development. The authorities and sectors at all levels need to make every effort to deal with this problem.

Almost all sectors are short of skilled workers, especially in the hi-tech and service sectors, holding back the changes in the economic structure. The lack of skilled workers is the main reason why Vietnam mainly exports unprocessed goods, at low values and low competitiveness to the international market. Apart from that, challenges to the environment and employment both put pressure on the economy.

According to the experiences of other countries, this is important problem for emerging economies in the opening period. The target for sustainable economic growth depends on the ways each nation copes with its own individual challenges.

What solutions will the Ministry of Industry and Trade apply to create better conditions after WTO admission in the future?

The Ministry of Industry and Trade as a state management agency in the trade field is implementing a series of solutions to support imports and exports businesses.

Firstly, my ministry will increase the opportunities to access markets for Vietnam’s exported goods. Therefore, the ministry is negotiating about free trade areas with China, South Korea, Japan, Australia, New Zealand and India to remove tax barriers and give tax exemption to Vietnam’s goods and services in these markets. Moreover, trade promotion activities are also being strengthened and diversified through counselors and national trade promotion programs.

Secondly, the ministry is creating a transparent trade environment with equal competition. We also protect the interests of businesses in lawsuits relating to dumping, the copyright law, unhealthy competition and are persuading countries to recognize Vietnam as a market economy.

Lastly, the Ministry of Industry and Trade is step by step implementing e-government and increasing the mechanisms to provide and exchange information with businesses through commercial e-ports and programs on questions and answers about our commercial policies.

Source: CPV