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 Vietnam After A member of WTO

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Vietnam After A member of WTO Empty
PostSubject: Vietnam After A member of WTO   Vietnam After A member of WTO EmptySun Apr 08, 2012 3:51 pm

Being a member of WTO (World Trade Organization) is a pride of any nation and so is Vietnam. Vietnam has been member of WTO since 11 January 2007. This has marked a major step in Vietnamese economy with the hope that there will be more attraction of FDI (Foreign Direct Investment) into Vietnam and a significant change to bring the country to the international arena. This could be good news for firms which are strong and long-term in operation and expecting to open the business to other countries because they now have many opportunities to perform highly with many supports from the organization as a member such as reduced barriers of tariff. However, this is also a challenge for domestic small businesses facing numerous hardships in term of the risks of going bankrupt.

As far as what to be concerned, owners of those firms are aware that their products are poor quality which really cannot compete to international standard goods from other WTO members while there is an equal price among those products due to removing tariff barrier. Despite of the awareness, they can do few things to improve the current performance of the business because of serious lacking of capital or finance. On top of that, goods imported into domestic market are tremendous with high quality, fair rate and many in variety. Additionally, foreign firms supported with strong capital could produce many times faster than domestic small firms do due to advanced technology while using not considerable manpower. This contributes to lower cost of product.

Standing in the face of such dangers, many owners of small business are making all the efforts to save the situation in order to be out of risk of bankruptcy. Some of them borrow capital from bank. Some get fund from other institutions and investors which may help the owners out. This fund will be then used to finance the planned scheme to improve and buy cutting edge technology so that the producing process runs in shorter time for higher quality product while there is guarantee for the quantity as well.

To protect the small business in front of the door of international economic integration in term of free trade, the government seriously concerns much more than ever for how to rescue those firms from bankruptcy. The central banks conduct many policies supporting funding for small enterprises by lending in long term and at low interest. Moreover, all the administrative structures and procedures are now simplified to be smoother and quicker for the enterprises. Eventually, many in fact are saved by the economic policies given by the government, but there are a lot of them are fumbling for the key of the “locked door”.forex
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