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Vietnam's international economic integration after nearly 30 years of renovation (Part 3 and end)

19/1/15
Vietnam's limitations in nearly 30 years of international economic integration
Vietnam is facing many challenges as following:
Firstly, a long time before the government issued Strategy to join free trade agreement (FTA) by 2020, joining the FTA was not really proactive and only focused on the short term profit such as tariff reductions, did not paid proper attention to the long-term goals such as improving competitiveness, quality growth, environmental reform, domestic institutions.
Secondly, the deployment of international economic integration has not really fully aligned with the strategy of socio- economic development and strategic development. The focus on economic integration in East Asia has increased the dependence of our economy to the largest economy in the region with the sources of raw materials, machinery, equipment, investment , technology and finance.
Thirdly, the competitiveness of the economy, businesses and products have improved but still weak in comparison with other countries. The economic sectors, the key enterprises which are capable to reach to regional and global domination are still limited. They even have no ability to take the leading positions to induce other branches and enterprises to develop. It is difficult for Vietnam’s products to compete. Despite the growth rate of exports much higher than other countries in the region, it began to decline. The structure of exports remains poor.
Fourthly, the commitment to open our markets in the process of international economic integration has created conditions for many countries to boost exports to Vietnam, meanwhile, Vietnam has not had protected measure for domestic producers in accordance with international commitments.
Fifthly, the quality of growth has not improved substantially. Investment efficiency is not as high as expected. Our growth over time largely based on factors such as credit, cheap labor without the significant contribution of the rise in labor productivity and knowledge content.
Sixthly, coordination of integration between ministries, central agencies and local businesses is not good. Many interdisciplinary issues are handled slowly, especially in the area of improving the efficiency of investment, competitiveness, synchronous development of market economic elements .
A number of policy recommendations for the future
To promote international economic integration, in the future, Vietnam needs to coordinate multiple solutions to overcome the outstanding issues, while exploiting maximum benefits of international economic integration. The solutions include:
Firstly, continue to build and fulfill the legal system and policies to implement the commitments of international economic integration according to outlined roadmap. It needed to ensure uniformity, efficiency, maintain a stable investment environment, do no affect the interests of operating businesses as well as new investors when amending and supplementing the existing legislation.
Secondly, review and adapt inconsistent provisions with the international commitments in order to fully implement obligations under bilateral, regional, and multilateral international treaties which Vietnam is a member. At the same time consider easing the conditions for investors and business
Thirdly, improve the competitiveness of the industry to maximize the benefits of international economic integration. It needed to assess the competive level of each sector as the reason to enhance the competitiveness of industries with advantages and adjust production for industries, businesses lack of competitiveness. For the major export sectors, Vietnam must have policies to change from processing to exporting. We also should have policies to promote added value in all sectors of the economy through the upgrading of human resources, technology, better access to technology resources, long-term cooperation with strong partners in respective fields, diversification and product renovation.
Fourthly, develop important sectors of the economy. Policies should develop processing industries that Vietnam has the potential and advantages, especially in agro-processing. Focus on the development of supporting industries to avoid heavy dependence on imported raw materials and shocks when raw material prices on the international market increased as well as save a major source of foreign exchange. Foster services supporting business such as finance, credit, science, technology, agro-processing industry and we must have policies to attract investment in these sectors.

Fifthly, improve the quality of human resources, which is particularly valued staff’s capacity, efficient allocation of human resources. Increase awareness for policy makers, officials at state management agencies and businessmen about rights and obligations of Vietnam to international economic integration. In parallel with the implementation of the commitments of international economic integration, a very important task posed for policy makers is to develop policies towards trade liberalization while boosting production and domestic business, facilitating the development of the nascent industry. Regarding role of enterprises, they should raise awareness about international economic integration, namely the rights and obligations of Vietnam when joining the international economic integration as well as the principles and basic rules of the WTO and regional trade forum to help enterprises understand and apply the maximum benefits of international economic integration for protecting themselves in the international commercial disputes./.
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All comments [ 10 ]


John Smith 20/1/15 11:59

Vietnam economy has undergone transformation ever since the measures pertaining to market economy were adopted. Despite Vietnam being regarded as a poor country, poverty has been reduced to a great extent.

Gentle Moon 20/1/15 12:00

Owing to achievements of Vietnam economic reform, rate of inflation was greatly reduced.

LawrenceSamuels 20/1/15 12:01

Vietnam metamorphosed from a centrally planned economic structure to a market economy.

Red Star 20/1/15 12:02

The achievements of Vietnam economic reform can be attributed to the nation's compliance with the fiscal and monetary policies; the fact that price subsidies were eradicated; price liberalisation; introduction of a flexible exchange rate policy.

yobro yobro 20/1/15 12:03

Since, inflation was tamed very judiciously, it laid the dais for subsequent growth in the economy because an optimum inflation rate goes a long way in maintaining a stable economy.

For A Peace World 20/1/15 12:07

There was improvement in the different sectors of the economy. Trade liberalization, adopting latest techniques in pricing of food products, launching of the taxes pertaining to agriculture, all these factors propelled economic growth in the country.

Socialist Society 20/1/15 12:08

Vietnam trade has been equally held responsible for achievement of Vietnam economic reform.

Me Too! 20/1/15 12:09

There has been extensive diversification of the import market as well as the export market in the country.

Vietnam Love 20/1/15 12:11

The banking sector in Vietnam is segregated into two levels comprising central bank in the first level with the commercial banking sector following on close heals and making up the second level.

Voice of people 20/1/15 12:13

Fiscal polices together with monetary polices are taken care of by the Central Bank. In this sphere the following factors can be said to have triggered the achievements of Vietnam economic reform.

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