Vietnam on Thursday became the 150th member of the World Trade Organization (WTO), a milestone expected to launch an era of radical change as the communist nation enters the global economic mainstream, writes World Bank Press Review.
Southeast Asia’s second most populous country after Indonesia hopes its new status as a signed-up member of the international trading system will accelerate rapid economic growth which is second in East Asia only to China.
Joining the WTO will mean for Vietnam the start of a new phase of reform. It should lead to very dynamic and hopeful development. Of course, there are opportunities and there are challenges.
Labor-intensive industries would benefit first in the country known for its industrious, low-wage workforce, while capital-intensive sectors would face the stiffest challenges from the entry of outside companies.
Vietnam will be required to slash tariffs and open previously closed sectors of its economy to foreign investors. While many of the changes will take effect immediately, others will be phased in.
Foreign banks, for example, won’t be allowed to open their own branches until April 1. Vietnam, in turn, will have increased access to foreign markets and a neutral arbiter to hear disputes that arise with its bigger, more powerful trading partners. It will also benefit from the increased demand for goods and services that increased foreign investment brings.
Kilde: www.worldbank.org
