Vietnam joins WTO as 150th member

HANOI – Vietnam yesterday became the 150th member of the World Trade Organisation, a milestone expected to launch an era of radical change as the communist nation enters the global economic mainstream.

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 growth and turn it from a poor into a middle-income nation. “It is a very important turning point,” said Le Dang Doanh, a senior economist at the ministry of planning and investment.”Joining the WTO will mean for Vietnam the start of a new phase of reform.It should lead to very dynamic and hopeful development.” Labour-intensive industries would benefit first in the country known for its industrious, low-wage workforce, he said, while capital-intensive sectors would face the stiffest challenges from the entry of outside companies.”Stronger competitors will come and force Vietnam to be more dynamic and there will be some sacrifices.There will be a limited number of bankruptcies.The WTO accession comes more than 30 years after the end of the Vietnam War and 20 years after the regime abandoned strict Soviet-style economic planning in favour of gradual “doi moi” (renewal) market reforms.Today, many investors tout Vietnam as a “China-lite,” which last year booked economic growth of nearly 8,2 per cent, second in East Asia only to its giant northern neighbour, and drew US$9,5 billion in foreign investment.Vietnam, one of only five remaining communist-ruled states in the world, describes its economic model as a “market economy with socialist orientation.”Nampa-AFP”It is a very important turning point,” said Le Dang Doanh, a senior economist at the ministry of planning and investment.”Joining the WTO will mean for Vietnam the start of a new phase of reform.It should lead to very dynamic and hopeful development.” Labour-intensive industries would benefit first in the country known for its industrious, low-wage workforce, he said, while capital-intensive sectors would face the stiffest challenges from the entry of outside companies.”Stronger competitors will come and force Vietnam to be more dynamic and there will be some sacrifices.There will be a limited number of bankruptcies.The WTO accession comes more than 30 years after the end of the Vietnam War and 20 years after the regime abandoned strict Soviet-style economic planning in favour of gradual “doi moi” (renewal) market reforms.Today, many investors tout Vietnam as a “China-lite,” which last year booked economic growth of nearly 8,2 per cent, second in East Asia only to its giant northern neighbour, and drew US$9,5 billion in foreign investment.Vietnam, one of only five remaining communist-ruled states in the world, describes its economic model as a “market economy with socialist orientation.”Nampa-AFP