WTO admission gives VN sweet fruits and meaningful lessons

VGP – Different lessons have been drawn during the past three years since Việt Nam’s accession to the World Trade Organization (WTO) in 2007, but all agreed that tender fruits are visible and laudable.

June 01, 2010 7:19 PM GMT+7

Since joining the WTO in 2007, Việt Nam has achieved much progress in perfecting its market-oriented regulations

The first achievement referred here is the historic increase of the country’s total investment capital, averagely accounting for over 43.5% of the gross domestic product (GDP).

Việt Nam allured at least 4,210 FDI projects with the total registered capital of US $116.2 billion in the 2007-2009 period, or up 3.6 times compared to the earlier period of 2001–2006 (just US $32.7 billion).

Some above-mentioned figures have fostered Minister of Planning and Investment (MPI) Võ Hồng Phúc to temporarily name four conclusions:

First, Việt Nam has perfected its socialist-oriented market economy by realizing commitments to the WTO. This factor has created deep-seated imprints in the country’s economic reform progress, FDI attraction, business development and market conquest.

Second, the accession to the world biggest trade platform has helped Việt Nam to point out its own shortcomings, namely poor growth and human resource quality, slow economic restructuring, weak institutional capacity, and inadequate infrastructure which all impede quick development and sustainable growth.

Third, Việt Nam’s static comparative advantages have been fully exploited when the country stepped up its integration. More importantly, dynamic advantages only appeared thanks to competition, economies of scale and FDI through addressing shortcomings relating to institutional capacity, infrastructure and human resource while adopting a proper approach on bilateral, regional and international scales.

Fourth, deeper integration means initiative and activeness, otherwise macro-economic risks and social imbalance may come at any time.

Việt Nam should pay due attention to its monetary policy and show its sharpness in absorbing foreign capital resources to maintain macro-economic stability and sustainable growth, said Chairman of the National Financial Supervisory Commission (NFSC) Lê Đức Thúy.

By Hải Minh