Vietnam Rice Exporting Industry

Only available on StudyMode
  • Pages : 16 (4941 words )
  • Download(s) : 88
  • Published : March 3, 2013
Open Document
Text Preview
BUSINESS ECONOMICS

Vietnam rice exporting industry in WTO

Achievements and the way ahead

GROUP 15

01. Duong Thai Ha

02. Nguyen An Nghia

03. Dam Phuong Thuy

04. Ly Thi Minh Thuy

05. Hoang Huyen Tram

TABLE OF CONTENTS

I. INTRODUCTION

II.THE CURRENT STATUS OF VIETNAM RICE EXPORTING INDUSTRY IN WTO

✓ Vietnam rice industry before joining WTO

✓ Impacts on Vietnam when joining WTO

III.WHAT REMAINS TO APPLY ALL REQUIREMENTS OF WTO

✓ Reduce tas tariffs

✓ Restructure the agricultural industry with focus on the highly competitive commodities Continue apply the export tariffs

✓ Maintain subsidy policies and strengthen ‘green box’ polices

✓ Reform the economics law frame

✓ Open for foreign investment

✓ Equitize Vietnamese enterprises

IV. CONCLUSION

REFERENCE

INTRODUCTION

Since joining the WTO on January 11, 2007, Vietnam’s export turnover has also soared sharply. Vietnam gross domestic product (GDP) reached approximately US$ 120 billion in 2011, 2.3 times higher from 2006 with US$53 billion. GDP per capita was US$1,300, twice as much as in 2006 (US$ 640). Vietnam has also attracted more than 4,000 foreign direct investment (FDI) projects worth over US$114 billion, 4.5 times higher than the target set for the 2006-2010 period. The export turnover is reached USD 71.6 billion, increasing by 25.5% against 2009, of which the domestic economic sector gains USD 32.8 billion, up by 22.7% in 2010. In 2011, the figure is valued at USD 8.3 billion, raising the total export turnover in the first 10 months to USD 78 billion, a year-on-year increase of 34.6%. Joining the WTO has also raised people’s awareness of international integration, which has changed Vietnam’s global position and led to an extensive reworking of a number of the Government’s policies. It is said that 30 percent of administrative procedures have been reduced under international pressure to simplify processes. Opening the market, removing tax barriers and subsidies, applying principles of non – discrimination, and implementing transparent policies have facilitated the development of local enterprises, and thus business standards have gradually improved. The commodities have been exported widely to 150 countries and territories, with many sectors benefiting from WTO membership including labor-intensive industries like clothing, footwear, food and electronics. Vietnamese goods are no longer discriminated against and domestic customers now have opportunities to buy a variety of imported goods at cheaper prices. However, there are still many difficulties ahead. After five years entering the WTO, Vietnam’s competition is confined to abundant natural resources, low-paid labor and low product prices. The growing prices of inputs on the global market have sent input costs to more than 60 percent of product prices Vietnamese businesses invest very little for technological innovation, with about 0.2 percent - 0.3 percent of total revenues. Vietnamese companies are thus using low prices to strengthen competitiveness and they usually face with antidumping lawsuits. Enterprises have not asserted their brand names on the world market, renovated technologies and particularly boosted up financial strengths. Vietnam has not prepared well enough to take up opportunities and resist negative impacts from this playing ground.

Rice exporting sector is no exception to this treadmill. The farming product reached $548 billion in terms of turnover per year. Vietnam’s farming export enjoys the lowest duties and elimination of non-tariff barriers. WTO atmosphere promotes fair competition to enhance business effectiveness of peasants as well as enterprises, acquires advanced technology, and expand markets for agricultural products. However, international economic integration does not bring direct benefits to agriculture and peasants, but only create...
tracking img