Thuy

International Area Review Volume 10, Number 1, Spring 2007

Received: 21 Mar, 2007 Accepted: 15 May, 2007

A Comparative Study of the Trade Barriers in Vietnam and Thailand

Nguyen Khanh Doanh*1

Thai Nguyen University, Vietnam

Yoon Heo**

Sogang University, Korea

Abstract

Although the issues of trade barriers have been discussed extensively in the existing economic literature, little evidence has been documented regarding the structures, characteristics, and trends of the trade barriers, including non-tariff barriers, in Vietnam and Thailand from a comparative perspective. This study analyzes how Vietnam and Thailand balance their needs to protect domestic industries and compliance with regional and multilateral commitments. This study’s findings are summarized as follows: First, both Vietnam and Thailand have similar tariff structures based on products and their origins, although the tariff schedule of Thailand is more complex than that of Vietnam. Second, Vietnam’s tariffs are more dispersed across the items than those of Thailand, due to the higher maximum tariff rate and percentage of tariff lines, ranging from 0-5 percent. Third, in terms of tariff escalation, the magnitude in Vietnam is higher than in Thailand. Fourth, the non-tariff structure of Thailand is more complex than that in Vietnam. Finally, when putting all the pieces of the complex web of trade distortions together, it appears both countries give more protection to the agricultural sector than non-agricultural sectors, but the intensity of protection in Vietnam is higher than in Thailand. Key Words: Tariffs, NTBs, Vietnam, Thailand, Escalation, Dispersion, Non-Automatic Licensing

1. Introduction

Thailand became a member of the WTO in 1992, whereas Vietnam joined the WTO in 2007. Although both countries are members of the ASEAN Free Trade Area, Thailand is a founding member and a middle-low income country, while

*Faculty of Economics, Thainguyen University of Economics and Business...