Integration - An effective way to move forward

Minister, Chairman of the Office of Government Nguyễn Xuân Phúc delivers a speech at the conference on socio-economic effects three years after Việt Nam joined the World Trade Organization (WTO), Hà Nội, May 24, 2010 – Photo: VGP

Former State and Party leaders, lawmakers, economists, businessmen on Monday joint a conference on socio-economic effects three years after Việt Nam joined the WTO.

Participants agreed that effects achieved by the admission to the WTO, other regional organizations and bilateral agreements cannot be clearly differentiated from the Vietnamese economy’s efforts and internal strengths to the country’s economic development.

However, it is undeniable that, Việt Nam has showed a laudable economic performance during the past three years when the global economic storm hit all countries around the world.

In the reviewed period, the total investment of the economy, particularly FDI inflow, has significantly surged. Việt Nam has allured at least 4,000 foreign funded projects worth of over US $114 billion, or 4.5 times higher than the preset target for the period of 2006-2010. The export turnover increased by 12.8% within 2007-2009.

Though the country has to cut down or remove tariffs imposed on a wide range of products under its WTO commitments, tax collection still shot up by 40.9% and 50.7% in 2007 and 2009 respectively. In the hardest year of 2009, the figure went up by 35.1%, said Mr. Lê Xuân Bá, President of the Central Institute for Economic Management (CIEM).

CIEM’s report also shows that economic integration has brought positive effects to the development of the labor market. The ratio of labor participation in economic activities rose from 70.27% in 2006 up to 76.4% in 2009.

Integration is an inevitable step which creates an impetus for the business circle to renovate itself and for State bodies to enhance their capacity, said Chairman of Sài Gòn Invest Group (SGI) Đặng Thành Tâm.

Sharing the same view, former Deputy PM Vũ Khoan noted that Việt Nam’s “integration skill and spirit” stood firmly amid the global crisis.

He was, however, concerned about some issues like incumbent administrative procedures that would impede the competitiveness of the economy.

Việt Nam should draft an overall plan to join bilateral and trilateral free trade areas which are mushrooming, he said.

All the ideas at the conference will be submitted to the Government’s May regular meeting for the final report.

By Hải Minh