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Domestic businesses are now on their way into the international economic integration after Vietnam officially integrated into the WTO three years ago. Economic expert Pham Chi Lan talks more about the issue.
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The Nhon Hoi Economic Zone. Photo V.L
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Could you reveal the results Vietnam reaped after joining the WTO for three years?
Joining WTO and international economic integration have both positive and negative effects. Vietnam’s policies and law have explicitly changed and the business environment is more advantageous, encouraging all economic sectors to strongly develop.
Vietnam has become an “attractive destination” for foreign investors, particularly those operating in fields of services, industry, export, and hi-tech.
Joining WTO and international economic integration also offered a big chance for domestic businesses to extend their market and build new business strategies to enhance the competitiveness capacity.
Vietnam has established the economic relationship with more countries and boosted many important regional and bilateral ties in the past three years. The non-tariff barriers were removed, helping private enterprises develop and State-owned sector improve. 200,000 enterprises have been newly established after three years.
How about disadvantages?
Domestic businesses have to face many negative effects and challenges. They are now suffering higher pressure in maintaining the competitiveness capacity. According to the World Economic Forum, Vietnam’s capacity for economic competitiveness is still low and the its rank has gradually decreased in recent years.
What do you think about the investment promotion and attraction in provinces, including Binh Dinh?
Most provinces don’t specify their investment promotion. The domestic enterprises seldom pay attention to investors’ capacity. Also, the lists of projects calling on investment are often similar in many provinces.
Another issue is that some provinces are now carrying out their investment promotion abroad. I think this is not truly effective. Such an investment promotion should be part of the Government or central bodies’ activities as foreign investors often pay attention to specific benefits.
What do you think about the Nhon Hoi Economic Zone?
Binh Dinh has made every effort in building the Nhon Hoi EZ, particularly the infrastructure. However, the investment attraction to the EZ hasn’t proved effective partly because of the effect of the global economic recession and financial crisis.
However, the issue must be carefully reconsidered. Often, we only think of the land preference when calling on investment as the land price is very high in Vietnam but the land is not the most important factor. The investors also want to know more about their investment opportunities, goods consumption, and other conditions.
What must be done to help Binh Dinh integrate into the world’s economy?
Binh Dinh has made all-out effort in the socio-economic development and reaped considerable achievements, particularly the business environment. Alongside this, the local businesses are benefited from the province’s preferential policies.
I think that Binh Dinh needs to continue focusing on the domestic investment attraction. With a good reputation, Binh Dinh will have more advantages in attracting foreign investors. I hope that many foreign investors will return to Binh Dinh when the global economic recession ends, helping the province overcome difficulties to develop.
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