The Economy of Vietnam Essay Example | Topics and Well Written Essays - 500 words

The Economy of Vietnam - Essay Example Though many of the changes have been positive in their move towards WTO membership, there are many changes yet to come and there is some anxiety in the marketplace. Sipress reports that the textile industry in Vietnam currently accounts for only 3.2% of the US imports and the elimination of quotas could have a positive effect on that number. Other industries, such as pharmaceuticals and fertilizer may suffer due to a reduction in import tariffs and the entry of foreign competitors. Companies that have come to rely on government subsidies and centralized sales will have to undergo dramatic change. A recent reshuffling in the political structure may also point to economic improvements. The addition of younger leadership and a shift of power to the more industrialized south may be able to further spur FDI. Intel's recent $300 million dollar chip factory is located in the south and may indicate another Asian technology center in the works. The changes that Vietnam began in 2000 resulted in more liberalized policies and made Vietnam's growth, and eventual admission to the WTO, possible. It demonstrates the impact that government trade policies can have on the economic climate of a country. It further shows the influence that the WTO has on global issues such as the environment and full employment. As Vietnam moves toward a more global presence, some industries will suffer hardships while others will flourish. Industries that are heavily reliant on domestic trade will have to learn to compete with imports.