Enhancing the Competitiveness of Vietnamese Industry Through Trade Liberalization
NAVAL WAR COLLEGE NEWPORT RI JOINT MILITARY OPERATIONS DEPT
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The Socialist Republic of Vietnam has made great strides in liberalizing trade and implementing market reforms since committing to the Doi Moi policy in 1986. The recent global recession has led to slower growth and tougher competition in the global market and Vietnamese industry has found itself hampered by its inability to compete. Vietnam must continue to take steps to lower barriers to international trade and investment in order to continue the thriving economic growth experienced since the advent of the Doi Moi policy. Implementing trade liberalization to promote growth represents the best defense against a possible threat to domestic tranquility and communist party power. Three complementary steps can be taken to continue the process of successful trade liberalization initiated by Doi Moi. First, reform State Owned Enterprises SOEs and improve their efficiency, second, attract more Foreign Direct Investment FDI to grow the non-state sector, third, seek implementation of the Trans Pacific Partnership TPP. Each of these measures is advantageous on its own, but the benefits are also mutually reinforcing.
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