Socialist Republic of Vietnam

Monday September 22, 11:31 AM - Asia Pulse Report

HANOI, Sept 22 (Asia Pulse) - Trade Minister Truong Dinh Tuyen spoke with Lao Dong (Labour) newspaper about Vietnam's progress as it attempts to enter the global economy.

What is Vietnam's status in the Association of Southeast Asian Nations(ASEAN) after nearly 10 years of membership?

"Vietnam's position has improved remarkably; we have been making solid
contributions towards a united ASEAN market.

"Our initiative, the economic development programme for co-operation among ASEAN members along the east-west corridor, aimed at narrowing the development gap, was a part of in ASEAN's Hanoi Plan of Action.

"Vietnam is always mindful of ASEAN's prestige, as well as protecting the
rights its four newest members, ourselves, Laos, Cambodia, and Myanmar."

How are Vietnamese enterprises and products improving their competitiveness?

"As Vietnam joins the ASEAN Free Trade Area (AFTA), domestic enterprises are under growing pressure to adjust their production structure, and update technology in order to improve quality and diversity of goods - I think AFTA's impact on domestic enterprises will be positive."

"A number of Vietnamese trademarks are already recognised in some ASEAN
markets.

"From my point of view, when Vietnam fully adopts AFTA, competition will be
tougher, and not only in terms of price and quality, so Vietnamese
enterprises need be increasingly responsive to market demands."

What is the status of Vietnam's application to join the World Trade
Organisation in 2005?

"Vietnam's application for WTO membership must be approved by nearly 150 members of the organisation, and accordingly we have to commit to opening up our goods and service markets, as well as accepting many relevant WTO agreements.

"We must work on our economic policies, raising competitiveness of products, enterprises and the entire economy before we are ready for full
integration."

What is your assessment of the Vietnam-US Bilateral Trade Agreement over the past two years? What can Vietnam do about increasing protectionism in the US?

"Implementing the agreement has brought about opportunities for Viet Nam's exports, particularly processed goods.

"Export turnover to the US market has risen quickly in two years, reaching
US$2.4 billion in 2002, and lifting domestic production and economic
development.

"Opening up Vietnam's goods and service market to US enterprises we have to face increasing protectionism from the US, such as their pursuit of an anti-dumping case against Vietnamese catfish exports.

"The important thing is we must be conscious of the agreement's pros and
cons - Vietnam has to develop suitable measures to cope with hurdles posed by the US that are contrary to our bilateral trade pact."

What are the challenges for Vietnam regarding global economic integration?

"Major principles driving international organisations that Vietnambelongs
to - ASEAN, APEC, ASEM - as well as the WTO, are free trade, service,
investment and technical co-operation.

"Joining these organisations means our economy must embrace co-operation and competition.

"Free trade and investment sees countries competing for investors in order
to pave the way for their goods and services to reach foreign markets, but
at the same time each country has to take some protective measures of
domestic products against imports.

This often proves difficult for Vietnam as our economy is still developing."

What can Vietnamese enterprises do to prepare for economic integration?

"Vietnamese enterprises play an important role in taking full use of
advantages and dealing with challenges posed by integration.

"This is why enterprises have to focus on honing business strategies that
incorporate their products, markets, and promotions.

"Government departments and offices must contribute to enhancing
enterprises' operations, helping them work in competitive."