Wo and Vietnam

INTRODUCTION

International trade has been considered by many economic experts as a key component to stimulate the economic growth and reduce poverty rate in any country, especially developing countries. The fastest and most effective manner to join in the global market is becoming the member of international trading organisations, and The World Trade Organization (WTO) appears to be the most powerful and popular in those organisations.

The WTO was started in 1995. It is the successor to the General Agreement on Tariffs and Trade (GATT) established in 1947.WTO is the international organization dealing with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible. With the entry of Samoa on 10 May 2012, the WTO now has 155 members.

Although joining in a global organisation like WTO has opened up a wide range of opportunities, member countries would face with some challenges which can dominate benefits if not be considered properly.

This report will discuss about the impact of the WTO accession applying in the particular nation Vietnam, one of the newest members of WTO.

1. .The background of Vietnam

Vietnam is the easternmost country on the Indochina peninsula in the South East Asia. With an estimated 90.5 million inhabitants in 2011, it is the world's 13th-most-populous country, and the eighth-most-populous Asian country. Vietnam, a one-party Communist state, has one of south-east Asia's fastest-growing economies and has set its sights on becoming a developed nation by 2020.

1. Vietnam economy

2.1 Before ‘Doi Moi’ reform (1975-1986)

After the war, the government focused mainly on economic recovery, improving labour skills, and agricultural and consumer goods.

The monopoly on political power of the ruling communist party drove Vietnamese economy as centralized economy which was preserved with a numbers of restrictions on economic trade for a decade.

From 1976 to...