The impact of Vietnam’s WTO membership on business environment: The case study in Da Nang city
1/ The awareness of enterprises of the impact of Vietnam’s WTO accession 2/ The specific preparations of enterprises before and after Vietnam joining to WTO 3/ Business performance
4/ Enterprises’ advantages and disadvantages in recent years 5/ Supports of governement and agencies
6/ Relationship with government agencies in the context of Vietnam joining WTO 7/ Evaluating impacts of WTO accession of Vietnam
Globalization and international economic integration is being the world’s general trend. The official accession to WTO of Vietnam last year and integration process have resulted in not only opportunities but also challenges which enterprises have to overcome. Enterprises need to put reasonable strategies into effect in order to adapt to new business environment, to fit competitive requirements. According to many studies, the participation to WTO would have the impact on import and export activities of country. There will be larger opportunities for Vietnamese goods to penetrate and expand their foreign markets. In addition, due to reducing tarriff barriers and implementing procedures following WTO regulations, the import of Vietnam will increase.
International integration and joining to WTO will have significant and comprehensive impact on localities and regions in many fields. The WTO accession is a favourable opportunity which contributes to transform economic structure, to speed up economic reform and growth. Therefore, if localities and regions know how to take full advantages of those opportunities, they would have a chance to grow.
Danang city is situated in key economic area of central Vietnam. The rate of economic growth of this city is quite high recent period and the development of the city would have the impact on other cities and provinces in this area. The investigation of the change in import-exports is necessary to evaluate the impact of Vietnam’s WTO accession and to learn about measures and strategies deployed by enterprises and local authorities to mitigate the possible impacts and to exploit opportunities coming from implementation process according WTO commitments.
1/ The awareness of enterprises of the impact of Vietnam’s WTO accession
Right after Vietnam speed up the global economic integration, especially when Vietnam participated into AFTA and Vietnamese government negotiated to joint to WTO, enterprises’ leaders and other stakeholders were aware deeply that they would not only have more opportunities but would also face with many challenges. The WTO induced reforms in Vietnam introduced several forms participating in import and export activities and those enterprises will be treated more equal. They also perceived that tarriff and non-tarriff barriers will be reduced or removed.
Those companies recognized that international integration results in more opportunities and advantages in penetrating into global market. However, they also conceded that the competition in domestic market will be harsher. This competition results from import goods and foreign investors. They are awared that if they are not improve competitive ability, they would lose domestic market to products imported from ASEAN and other developed countries.
To a certain extent, some new and more sophisticated barriers appeared and were used used widely by many countries such as antidumping duties, countervailing measures, tariff quota, and other forms of special safeguards, stricter technical regulations, sanitary and phytosanitory standards, environmental standards, labor standards and social responsibility standards.
2/ The specific preparations of enterprises before and after Vietnam joining to WTO
To cope with global competition and challenges when international integration and joining to WTO of Vietnam, enterprises’ leaders have had reasonable strategies which resulted in significant...
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