Vietnam’s integration into the global economy. Achievements and challenges

Abstract

Aspiring to further integrate into the global economy Vietnam is confronted with tremendous political, economic and institutional challenges. Issues to be addressed are not only technical questions such as tariff reductions, abolishing quantitative restrictions, the investment regime or the gradual giving up of the foreign trade monopoly. Much was achieved but more challenges are laying ahead. If trade is to continue to serve as an engine of growth, Vietnam must develop a multidimensional strategy for trade expansion, which fits into an appropriate macroeconomic environment. Institutional reforms and improvements in the legal system are as important as human capacity building and an appropriate infrastructure for attracting FDI and expanding exports. Three prominent economic integration projects facilitate the process. They are a severe test of Hanoi’s administrative and governance capacity but also demonstrate the government’s obligation to restructure the national economy.