First published by Ohmynews on 2006-11-08 08:52 (KST)
Membership will bring both opportunities and challenges
The World Trade Organization held a special plenary section meeting in Geneva on Tuesday to consider admitting Vietnam as its 150th member.
According to a WTO spokesman, the meeting concluded successfully that afternoon. All 149 current members approved Vietnam's entry, ending 11 years of negotiations.
As soon as Vietnam's National Assembly ratifies the accession accords, its membership will become official. According to Vietnam National Television, this is likely to take place on Nov. 28, after the Asia-Pacific Economic Cooperation meeting in Hanoi.
Becoming a WTO member is considered an important breakthrough for Vietnam's economy. It will bring enormous opportunities but also raise quite a few challenges for local businesses.
As a WTO member, important export sectors of the economy will have the opportunity to compete fairly in the world markets. It will be protected under the WTO's rules from unfair decisions, such as an anti-dumping levy to protect local producers, or attempts to block imports from Vietnam.
Local consumers will benefit from lower prices, more choice.
However, Vietnam also has to carry out its commitment to drop tariffs, to lift restrictions against foreign companies, and to reduce subsidies to its agriculture sector. Local people fear that the lives of farmers, who account for 80 percent of Vietnam's population, will be heavily affected by cheap imports from neighboring countries. Regarding this issues, Jonathan Pincus, a senior economics expert with the United Nations Development Program in Vietnam, has a different view. "Once becoming a WTO member, Vietnam agriculture sector will pose a threat to other countries, not the vice versa," he said.
As a member of the WTO, Vietnam also has to open up its banking, insurance and telecommunications to foreign providers, which means that local providers will face harsh competition from outsiders.
Small and medium businesses will be the most affected by competition from big international companies. They must fight to remain competitive, or go bankrupt. According to statistics released by the Vietnam Chamber of Commerce and Industry, there are currently 200,000 businesses in operation in Vietnam -- 90 percent of them small and medium businesses.
Membership will bring both opportunities and challenges
The World Trade Organization held a special plenary section meeting in Geneva on Tuesday to consider admitting Vietnam as its 150th member.
According to a WTO spokesman, the meeting concluded successfully that afternoon. All 149 current members approved Vietnam's entry, ending 11 years of negotiations.
As soon as Vietnam's National Assembly ratifies the accession accords, its membership will become official. According to Vietnam National Television, this is likely to take place on Nov. 28, after the Asia-Pacific Economic Cooperation meeting in Hanoi.
Becoming a WTO member is considered an important breakthrough for Vietnam's economy. It will bring enormous opportunities but also raise quite a few challenges for local businesses.
As a WTO member, important export sectors of the economy will have the opportunity to compete fairly in the world markets. It will be protected under the WTO's rules from unfair decisions, such as an anti-dumping levy to protect local producers, or attempts to block imports from Vietnam.
Local consumers will benefit from lower prices, more choice.
However, Vietnam also has to carry out its commitment to drop tariffs, to lift restrictions against foreign companies, and to reduce subsidies to its agriculture sector. Local people fear that the lives of farmers, who account for 80 percent of Vietnam's population, will be heavily affected by cheap imports from neighboring countries. Regarding this issues, Jonathan Pincus, a senior economics expert with the United Nations Development Program in Vietnam, has a different view. "Once becoming a WTO member, Vietnam agriculture sector will pose a threat to other countries, not the vice versa," he said.
As a member of the WTO, Vietnam also has to open up its banking, insurance and telecommunications to foreign providers, which means that local providers will face harsh competition from outsiders.
Small and medium businesses will be the most affected by competition from big international companies. They must fight to remain competitive, or go bankrupt. According to statistics released by the Vietnam Chamber of Commerce and Industry, there are currently 200,000 businesses in operation in Vietnam -- 90 percent of them small and medium businesses.
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