Vietnam’s accession to the World Trade Organisation (WTO) and post-WTO investment opportunities were hotly debated at the Vietnam Investment Forum in Hanoi on March 15-16. Leading foreign investors attending the forum agree that Vietnam is becoming an attractive destination for foreign investors, particularly after it joins the WTO
Vietnam
’s accession to the World Trade Organisation (WTO) and post-WTO investment opportunities were hotly debated at the Vietnam Investment Forum in Hanoi on March 15-16. Leading foreign investors attending the forum agree that Vietnam is becoming an attractive destination for foreign investors, particularly after it joins the WTO.
Adam Sitkoff, President of the American Chamber of Commerce in Vietnam (Amcham) and Michael Mann, General Director of RMIT Vietnam granted interviews to VOVNews to talk about this issue on the sidelines of the forum.
Amcham president Adam Sitkoff: Vietnam is a hot investment destination
VOVNews: Vietnam’s accession to the WTO is drawing near. What is your opinion on this development?
Mr Sitkoff: Vietnam is trying to join the WTO because it will help change Vientam’s economic climate. Bilateral negotiations with the US have moved forward quite well recently, and the American business community expects a lot of progress to be made during the upcoming round scheduled for late March. It is time for Vietnam to become a WTO member because the country will host the 14th Asia-pacific Economic Co-operation (APEC) summit in November this year. This will be a big achievement for Vietnam. Amcham wants to see Vietnam join this club as quickly as possible and will do as much as it can to move this process forward.
Increased competition is the main challenge for Vietnam after joining the WTO. When you open the market, you will have to compete on an even playing field with more developed countries. This is a great challenge for Vietnamese companies and they should modernise themselves to become more efficient to overcome these challenges and help them compete on a global basis. More than 83 million Vietnamese people will end up with more choice, higher quality and lower prices.
Joining the WTO cannot help a country avoid anti-dumping lawsuits, but it will provide an extra layer of protection against similar cases from other WTO members.
Many enterprises do not know how WTO membership will affect them. The WTO is a learning process for all businesses. They must know that the rules will change a lot. Vietnamese companies, if they want to do well, need to identify what kind of competition will exist and how they compete in this environment. In brief, the level of competition and awareness about the WTO is quite limited among Vietnamese businesses and I think that the Government should do more to help them prepare for change.
VOVNews: What are your assessments of Vietnam’s investment environment at present and after it joins the WTO?
Mr Sitkoff: There are a lot of criteria, but I think there are two main questions: What do these people think about your country, and, What is the Government doing to attract foreign investment?
I can say that both areas are proceeding well . Vietnam has over the past 18 months become a hot destination for investors from many parts of the world. When you look at Malaysia, Thailand, Singapore or Indonesia, you also look at Vietnam, and more and more foreign investors say that the working environment here is better than in those countries. Last year, total FDI capital in Vietnam was higher than the figure in India. That is a clear example that investors like Vietnam when selecting an investment destination. Amcham has received opinions saying that Vietnam has changed significantly and the future is promising.
VOVNews: What will Vietnam do to make the most of the opportunities?
Mr Sitkoff: First of all, you should complete the infrastructure system (ports, electricity and water supplies…). In addition, you should strictly deal with corruption as it is a big challenge for foreign investors.
RMIT General Director Michael Mann: It is for Vietnamese enterprises to invest overseas.
I think that a lot of economic changes have already occurred in Vietnam and joining the WTO will be a big step as it has significant impacts outside Vietnam. They may wish to come here, look at the economy and see how to work in the economy by investing or training. I think there is a lot of work to be done by the Vietnamese side. But from the foreign side, I think there is a positive outlook.
In fact, a lot of enterprises are well prepared for this process, but some are waiting to see what will happen and it would be very difficult for these enterprises. They should know what joining the WTO means and should have post-WTO plans so that they can benefit from the process. The more you are prepared for something, the better you will do it.
When joining the WTO, Vietnam will face fierce competition, but competition is good as it will increase productivity and margins. The Vietnamese people are very competitive and hard working, so this is a good opportunity for Vietnam to move forward. It is like a race and I believe that you will succeed.
Too many people think that you need more foreign investment, but I think people should start to think that Vietnam itself should invest overseas.
When they invest in other companies, they will bring back practices to Vietnam. I would like to see more Vietnamese enterprises investing offshore in many areas in the coming years.
(Source: VOV)
