INTERNATIONAL BUSINESS

Task:
WTO and the situation of past 10 years since Vietnam joined in this
organization. What are commitments, problems, achievements?

• Instructor: Dr. NHAN CAM TRI

• TEAM 7:
1. TRAN TRUNG THANH
2. LE THAI BICH
3. PHAN QUOC LICH
4. NGUYEN THI KIM HOANG
What is WTO?
The World Trade Organization (WTO) is the
only 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.

The result is assurance. Consumers and

producers know that they can enjoy secure
supplies and greater choice of the finished
products, components, raw materials and services
that they use. Producers and exporters know that
foreign markets will remain open to them.
 What is WTO?
1. The multilateral trading system - past, present and future

The World Trade Organization came into being in 1995. One of the
youngest of the international organizations, the WTO is the successor to
the General Agreement on Tariffs and Trade (GATT) established in the wake
of the Second World War. So while the WTO is still young, the multilateral
trading system that was originally set up under GATT is well over 50 years
old.

The past 50 years have seen an exceptional growth in world trade.

Merchandise exports grew on average by 6% annually. Total trade in 2000
was 22 - times the level of 1950. GATT and the WTO have helped to create
a strong and prosperous trading system contributing to unprecedented
growth.
What is WTO?
2. The organization

The WTO’s overriding objective is to help trade flow smoothly, freely, fairly
and predictably.It does this by:
+ Administering trade agreements
+ Acting as a forum for trade negotiations
+ Settling trade disputes
+ Reviewing national trade policies
+Assisting developing countries in trade policy issues, through technical
assistance and training programmes
+ Cooperating with other international organizations
What is WTO?
3. Structure

The WTO has nearly 150 members, accounting for over 97% of world trade. Around 30 others
are negotiating membership.
Decisions are made by the entire membership. This is typically by consensus. A majority vote
is also possible but it has never been used in the WTO, and was extremely rare under the
WTO’s predecessor, GATT. The WTO’s agreements have been ratified in all members’
parliaments.
The WTO’s top level decision - making body is the Ministerial Conference which meets at least
once every two years.
Secretariat
The WTO Secretariat, based in Geneva, has around 600 staff and is headed by a director-
general.
The Secretariat’s main duties are to supply technical support for the various councils and
committees and the ministerial conferences, to provide technical assistance for developing
countries, to analyze world trade, and to explain WTO affairs to the public and media.
Vietnam’s accession to WTO
The Government of the Socialist Republic of
Viet Nam applied for accession to the World
Trade Organization in January 1995.
- In 1996: Vietnam negotiate with Business
Technology Association
- In 11/2006: WTO assemble a meeting to
decide on Vietnam’s accession to WTO.
11th January 2007
Vietnam becomes
a full member of the WTO
The real situation after 10 years joining WTO
 Vietnam's GDP compositions by sectors in Percent during 2001 - 2010

-The proportion of agriculture shrunk from 22.43% in 2001 to 16.42% in 2010. Industry sector has
increased from 36.57% in 2001 to 41.93% in 2010. Services sector maintained level up around 41%
during 2001 - 2010. In general, Vietnam's economic structure has moving towards the modern
composition, reducing the ratio of agriculture during rapid urbanization, and increasing the ratio of industry
and services sectors.
-However, the Vietnam's economy structure has been dedicated towards processing - based industries
dominated by garments, textiles, footwear, automobile and motorbike assembling and industries
consume large amounts of energy and materials such as cement, steel etc
 Vietnam's GDP compositions by sectors in Percent during 2001 - 2010

Picture demonstrates the Vietnam's GDP compositions by sectors in percent during 2001 - 2010.
It is understandable that State sector's shares tended to decrease while the shares of Private and
Foreign invested sector had the upward trends.
Specifically, the share of State sector of Vietnam's GDP reduced from 41% in 2001 to 37% in
2010. While, the shares of Private and Foreign invested sectors had slight increase from
48.2% and 10.8% in 2001 to 49.4% and 13.6% in 2010.
Table of EXPORT – IMPORT VIETNAM
 PROBLEMS AFTER 10 YEARS

Labor productivity in Vietnam is still low, contributing to limited growth.

In 2011, Vietnam's average labor productivity at current prices was about $ 2,400 per capital, much lower
than the 2005 level of labor productivity in many countries in the region.

Specifically, the corresponding turn respectively are Indonesia 2,650USD, Korea 33,237USD, Malaysia
12,571USD

In 2012, the labor force productivity (GDP / labor) at current price is 63.11 million VND, “2013 is 68.65
million” and “74.66 million in 2014” and “83.81 million in 2015”, much lower than in other countries in
the region.
The future target on the next 10 years and what Vietnam should
to do better ?

The future target on the next ten years ?

• Vietnam expects higher economic growth over the next ten years, driven by strong exports and
foreign investment as the Southeast Asian nation integrates further into the global economy.
• The country targets an economic growth rate of between 6.5% and 7.0% a year during the 2020 -
2030 period, up from an average annual growth rate of around 6% for the past five years.
• Vietnam has remained one of the best performers in Asia and its economic growth has been
gaining momentum thanks to strong foreign investment inflows and exports. Growth is expected
to be above 7% this year 2018.
• Economists said the momentum will continue now that the country has signed several free trade
agreements with such important markets as the European Union and South Korea.
• Economist Can Van Luc, with the Bank for Investment and Development of Vietnam, said the
government’s economic growth target for the next ten years appears to be reachable.
What Vietnam should to do better ?
• Continuing to perfect the legal system and administrative procedures so as to form in a quick and
coordinated manner elements of a market economy, creating a legal foundation for realizing our
commitments
• Strongly accelerating administrative reform and abolishing unnecessary formalities to shorten the
time required for business start-up and market participation.
• Strongly developing human resources
• Developing services: Efforts will be focused on developing high added-value services; financial and
banking services with diversified products, and telecommunications, tourist, consultancy and
accounting and audit services. 
• Developing domains and products with a competitive edge and potential for market expansion.
• Continuing to accelerate the equitization of state enterprises, encouraging people to invest in
production and business activities, developing forms of enterprises, and adopting policies to
support small- and medium-sized enterprises.
• Increasing the competitive capacity of Vietnamese enterprises.