Vietnam companies urged to brace for WTO challenges

Deputy Prime Minister Nguyen Sinh Hung

Companies in Vietnam must prepare quickly for the huge challenges they will face when the country enters the World Trade Organization, opening the door to increased foreign competition, a cabinet leader has said. 

The government believed that many Vietnamese firms will withstand the pressure when the nation joins the WTO, Deputy Prime Minister Nguyen Sinh Hung told Thanh Nien Wednesday on the sideline of the ongoing National Assembly (NA) session.

However, Hung said, "Not every enterprise will win. In this fierce competition, some enterprises and commodities will fail."

The WTO is expected to approve Vietnams membership in early November, before Vietnam hosts the summit of the Asia-Pacific Economic Cooperation forum on Nov. 18-19.

Hung said local companies would have to make many improvements or they would lose out in domestic markets.

"If enterprises do not reform quickly, particularly state-owned enterprises, which generate more than 40 percent of the GDP, they will be confronted with huge difficulties," he said.

Therefore, it was necessary to boost further the equitization of state-owned enterprises to improve their capital and management.

The government would also continue providing private enterprises with indirect supports, such as training and trade promotion, Hung added

The deputy prime minister expressed his concern about the competitiveness of Vietnamese agricultural, forestry and seafood sectors, which employ a majority of the countrys work force.

Former Prime Minister Phan Van Khai, who stepped down in June, also voiced concerns over poor quality of Vietnamese products.

"I have talked about this many times before, but there has been no improvement," Khai said at the NA session. "Now we cannot delay. It will become a huge challenge when we join WTO."

The NA is expected to ratify a resolution on Vietnam’s accession to WTO on November 28.

(Source: Thanhniennews)