Trade Reform in Vietnam : Opportunities with Emerging Challenges

In 1986 Vietnam initiated a transition from a centrally planned economy to a market-oriented economy where the government would keep playing a leading role. These renovation (doi moi) policies were successful at generating economic growth and reducing poverty. In the ten-year socioeconomic strategy endorsed by the Ninth Party Congress in April 2001, the authorities further articulated their development objectives in terms of economic growth and poverty reduction. To reach these objectives, the government indicated that its structural reform priorities were to change Vietnam's trade and financial policies, liberalize the climate for private investment, increase the efficiency of public enterprises, and improve governance. The author argues that the pace of implementation of trade reform-which has been impressive so far-is raising new challenges. On one side, fast liberalization of trade reform may soon conflict with the slow pace of implementation of other reforms, including restructuring of state-owned enterprises and state-owned commercial banks. On the other side, Vietnam would greatly benefit from fast implementation of trade reform and particularly fast accession to the World Trade Organization (WTO), especially after China's recent WTO accession. Auffret concludes that implementation of trade reform will be a testing ground to reveal the extent of Vietnam's commitment to a market-oriented economy.

Bibliographic Details

Main Author:	Auffret, Phillipe
Language:	English en_US
Published:	World Bank, Washington, DC 2003-06
Subjects:	ACCESSION, ACCESSION PROCESS, ACCESSION TO THE WORLD TRADE ORGANIZATION, ACCESSION TO WTO, AGREEMENT ON TRADE, AGRICULTURE, ANTIDUMPING, ANTIDUMPING INVESTIGATION, APPAREL, APPAREL EXPORTS, AVERAGE TARIFFS, BARGAINING POWER, BILATERAL NEGOTIATIONS, BILATERAL TRADE, BUSINESS ENVIRONMENT, CARTEL, CENTRAL PLANNING, CHANGES IN TRADE, COAL, COMMERCIAL BANKS, COMPARATIVE ADVANTAGE, COMPETITIVENESS, CUSTOMS CLEARANCE, DEREGULATION, DEVELOPMENT AGENDA, DEVELOPMENT STRATEGY, DIRECT REGULATION, DISPUTE SETTLEMENT, DISPUTE SETTLEMENT MECHANISM, DISPUTE SETTLEMENT PROCEDURES, DOHA DEVELOPMENT AGENDA, DOMESTIC DEMAND, DOMESTIC INDUSTRIES, DOMESTIC MARKET, DOMESTIC PRODUCERS, DOMESTIC SUPPORT, DOWNWARD PRESSURE, DUTY DRAWBACKS, DUTY EXEMPTIONS, ECONOMIC GROWTH, ECONOMIC IMPACTS, ECONOMIC INTEGRATION, EXCHANGE RATE, EXPENDITURES, EXPORT BIAS, EXPORT DEVELOPMENT, EXPORT INCENTIVES, EXPORT SUBSIDIES, EXPORT VOLUMES, EXPORTERS, EXPORTS, FINAL GOODS, FINANCIAL INSTITUTIONS, FINANCIAL SECTOR, FISH, FOREIGN BANKS, FOREIGN DIRECT INVESTMENT, FOREIGN DIRECT INVESTMENTS, FOREIGN EXCHANGE, FOREIGN INVESTMENT, FOREIGN INVESTORS, FREE TRADE, FREE TRADE AREA, FUEL TRADE, FUELS, GATS, GLOBAL TRADE, IMPACT OF TRADE, IMPORT BARRIERS, IMPORT DUTY, IMPORT RESTRICTIONS, IMPORTING COUNTRIES, IMPORTS, IMPORTS OF TEXTILES, INCOME, INFORMATION DISCLOSURE, INSURANCE, INSURANCE COMPANIES, INTELLECTUAL PROPERTY, INTENSIVE PRODUCTS, INTERMEDIATE GOODS, INTERNATIONAL COOPERATION, INTERNATIONAL INVESTMENT, INTERNATIONAL TRADE, LABOR FORCE, LEGISLATION, LIBERALIZATION OF TRADE, LOCAL CONTENT, LOCAL PROTECTIONISM, MACROECONOMIC POLICY, MARKET ACCESS, MARKET ECONOMY, MEMBER COUNTRIES, METALS, MFN, MIDDLE INCOME COUNTRIES, MONOPOLIES, MONOPOLY, MULTILATERAL NEGOTIATIONS, MULTILATERAL TRADE, NATIONAL TREATMENT, NATURAL MONOPOLIES, NEGATIVE IMPACT, NON-TARIFF BARRIERS, OIL, OPENNESS, PLANNED ECONOMY, POLICY MAKERS, POLICY REFORM, POLICY REFORMS, POLICY RULES, POVERTY REDUCTION, PREFERENTIAL TARIFF, PREFERENTIAL TRADE, PREFERENTIAL TRADE AGREEMENT, PRIVATE INVESTMENT, PRODUCTIVITY, PROTECTION OF INTELLECTUAL PROPERTY RIGHTS, QUANTITATIVE IMPORT RESTRICTIONS, QUANTITATIVE RESTRICTIONS, QUOTAS, RATES OF PROTECTION, RECENT ACCESSION, REGULATORY REQUIREMENTS, ROUND AGREEMENT, SECURITIES, SERVICE SECTOR, SERVICES SECTOR, STATE ENTERPRISES, STATE-OWNED ENTERPRISES, TARIFF BARRIERS, TARIFF RATE, TARIFF RATES, TARIFF REDUCTION, TARIFF REDUCTIONS, TARIFF SCHEDULE, TAX RATES, TAX REVENUE, TECHNICAL COOPERATION, TRADE AGREEMENT, TRADE AGREEMENTS, TRADE BARRIERS, TRADE FACILITATION, TRADE IN SERVICES, TRADE LIBERALIZATION, TRADE LIBERALIZATION COMMITMENTS, TRADE NEGOTIATIONS, TRADE POLICIES, TRADE POLICY, TRADE POLICY INSTRUMENTS, TRADE REFORM, TRADE REFORMS, TRADE REGIME, TRADE RULES, TRADE VOLUMES, TRADING PARTNERS, TRADING RIGHTS, TRADING SYSTEM, TRANSITION ECONOMIES, TRANSPARENCY, UNIFORM APPLICATION, URUGUAY ROUND, VALUATION, WAGES, WORLD PRICES, WORLD TRADE, WORLD TRADE ORGANIZATION, WTO, WTO ACCESSION, WTO AGREEMENT, WTO AGREEMENTS, WTO COMMITMENTS, WTO MEMBERSHIP, WTO RULES TRADE DEVELOPMENT, STRUCTURAL REFORMS, PRIVATE INVESTMENTS, INVESTMENT ENVIRONMENT, PUBLIC ENTERPRISES, GOVERNANCE, ENTERPRISE RESTRUCTURING, WTO RULES, TRADE DEVELOPMENT,
Online Access:	http://documents.worldbank.org/curated/en/2003/06/2384819/trade-reform-vietnam-opportunities-emerging-challenges https://hdl.handle.net/10986/18160
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