(VOVworld) – Vietnam joined the World Trade Organization on November 7, 2006, and was granted official membership on January 11, 2007. This opened up a great opportunity for Vietnamese products and services to access the WTO’s huge market of 160 member countries, accounting for 97% of global GDP. Over the last 7 years Vietnam has leveraged WTO membership for its economic growth.

Vietnam earned 132 billion USD from exports in 2013

The WTO says that although some things need to be adjusted, the last 7 years have shown that Vietnam has strictly and responsibly honored its WTO commitments.

Vietnam’s economy growing steadily

Tran Quoc Khanh, Deputy Minister of Industry and Trade and Head of the Government’s negotiation delegation on international trade, says that since joining the WTO, Vietnam has abided by commitments to open its markets, ensure transparency, fine tune its legal framework, and establish a level play field for both domestic and foreign enterprises. Vietnam’s access to foreign markets has improved, increasing Vietnam’s export revenues. Vietnam’s export and import turnover in 2007 increased 31.3%, equivalent to 26.5 billion USD. Vietnam earned 132 billion USD from exports in 2013, an increase of 15.4%, or 17.6 billion USD. Khanh said Vietnam’s economic restructuring and trade policy reforms to conform to WTO standards and regulations have been acknowledged by the WTO. “Vietnam has maintained a high growth rate for a long time and obtained remarkable poverty reduction results. Vietnam continues to integrate into the global economy and is striving to build a more dynamic economy.”

Over the reviewed period, Vietnam has recorded an annual economic growth rate of 7.3%, has increased per capita income by 4 times, and brought its inflation rate below 7%. Vietnam exports about 75% of its GNP. Vietnam has become an important economic and political factor in ASEAN and Asia and is now a key partner of many countries.

Enhancing economic reform toward global trade

Vietnam’s economy has changed significantly due to comprehensive legal reform in line with Vietnam’s commitments to the WTO. Vu Tien Loc, President of the Vietnam Chamber of Commerce and Industry, said institutional reform is a foremost task for Vietnam to take advantage of its WTO membership. “Prime Minister Nguyen Tan Dung has set a target of creating an institutional breakthrough which will provide new momentum for national growth and help Vietnam take advantage of the WTO and actual and pending free trade agreements like the TPP and the Vietnam-EU trade agreement.” 

WTO membership has had an adverse effect on Vietnam’s agriculture and its most vulnerable social groups. The trade balance has been a problem. Former WTO General Director Pascal Lamy said that in order to minimize risks and create favorable conditions for the post-WTO economy, Vietnamese enterprises should focus on value-added products. The Vietnamese government has devised export policies to help Vietnamese enterprises improve their competitiveness internationally and minimize adverse effects of WTO membership on sustainable economic growth.