Foreign trade and international economic integration
The policy of openness and industrialization has opened up new
opportunities for Vietnam to make full use of its inherent comparative
advantages, i.e. vast natural resources, abundant workforce
and low labour cost. These advantages are being exploited to raise
Vietnam's exports, which generate an increasing flow of foreign
income for economic growth and industrialization. Over the years of
Doi Moi process, Vietnam's export growth has averaged 20%. From
around US$ half a million before the introduction of Doi Moi policy,
the total export volume of Vietnam reached US$ 26 billion in 2004
and US$ 32.23 billion in 2005.
The structure of exports has also seen a positive change. During
the 1991-1995 period, major exports of Vietnam were crude oil,
fisheries products, rice, textiles, coffee, forestry products, rubber,
peanuts and cashew nuts. In 2005, Vietnam was mainly exporting
crude oil, garment and textile, footwear, seafood, woodwork, electronics appliances and rice. This structure reflects the rise in processing
and manufactured products and decline in unprocessed
products, including agricultural, fisheries, forestry products and
minerals. Despite this shift, unprocessed export products still make
up a large proportion. Therefore, greater efforts are needed to rapidly
raise the proportion of industrial exports.
The policy of "multilateralization and diversification" of international
relations has helped Vietnam integrate more deeply into
the world and regional economy. Before 1990, Vietnam had trade
relations with only 40 partners. Now with the foreign policy of
openness, which is to befriend and cooperate with all countries
in the world on the basis of equality and mutual benefit, Vietnam
has established diplomatic relations with 170 countries, and has
signed multilateral and bilateral trade agreements with over 80
nations. The country has MFN status with more than 70 countries
and territories, including countries and regions with large capital
resources, high technologies and vast markets, such as the
United States, Japan, the EU and newly industrialized economies
in East Asia.
Following the introduction of Doi Moi, Vietnam signed an economic
and trade cooperation agreement with the EU in 1992, joined
ASEAN in 1995, AFTA in 2001 and APEC in 1998. Vietnam also
signed the Bilateral Trade Agreement with the United States in
2000. Vietnam started negotiations for WTO accession in 1995 and
is now ready to become the 150th member of the WTO.