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The year of the WTO
Vietnamese furniture has enjoyed greater foreign exposure since the country joined the WTO in January

The meeting gathered economic experts to review Vietnam's first WTO year.

Vietnam became the world body's 150th member in January this year.

Luong Van Tu, former mission head for Vietnam's WTO entry, said Vietnam's GDP has grown 8.5 percent over last year as exports have risen 20 percent over the period.

The country's export turnover would reach US$48 billion by the end of the year, he said.

He said the country has received about US$18-19 billion in foreign direct investment (FDI) this year, showing the confidence of international communities in the reliability of Vietnam as a new investment destination.

Le Dang Doanh, a governmental economist, said the growth of the private sector had improved living conditions in rural and urban areas thought to be susceptible to the pit-falls of international integration.

Though Vietnam's first year has been less successful than China's early WTO membership, Vietnam has integrated deeply into the world economy, said Doanh.

He said that 70-80 percent of the country's 2007 achievements were due to the membership.

But economic analyst Huynh Buu Son said the country's achievements were rooted in a string of factors over the years, not just the WTO.

He cited a bilateral trade agreement with the US and an ASEAN free trade agreement as major contributing factors without discounting the benefits of WTO membership.

Snares and snags

Doanh said the country's rate of economic development and FDI growth has left behind fundamental infrastructure such as roads, ports and energy.

He said infrastructure upgrades and expansion projects were movingall too slowly.

Tran Dinh Thien, deputy director of Vietnam Institute of Economics, blames the WTO membership for inflation, which has skyrocketed to more than 10 percent in the post-accession year.

The country's ever-highest price index is higher than China's was after its first WTO year.

Vietnam's inflation rate is also higher than Asia's average of three - four percent in 2007.

Thien said weak management on the part of the government had caused the inflation, which he said has hindered local businesses' ability to compete.

Diep Thanh Kiet, deputy chairman of the Ho Chi Minh City Association for Garments, Textiles, Embroidery and Knitting (AGTEK), said local businesses have had more export opportunities since Vietnam joined WTO.

But he also said such exporters have faced serious labor shortages as competition has sucked up qualified prospects and labor costs have risen alongside inflation and heavy demand for workers.

Source: Thanhnien.com.vn


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Content  
  
    Pre-news
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