Vietnam And Its Impact On Vietnam - 1231 Words

The country that I have chosen to do research in is Vietnam. Vietnam was considered one of the poorest countries until just recently it has been transformed in a lower middle-income country because of changing from a centrally planned economy into a more market-oriented economy through the use of the international trading system. The political and economic reform project is called Doi Moi and since Doi Moi has been initiated, Vietnam has grown at an annual average rate of 6.3% between the years 2007-2012 (WTO). The global financial crisis greatly affected Vietnam because it led to more tightly macroeconomic policies that were implemented in 2011. However, the official unemployment rate remains very low even though inflation dropped by 23%†¦show more content†¦When Vietnam entered into the World Trade Organization, the country experienced a huge increase in foreign direct investments. Ever since, Vietnam has remained a population place for foreign investors to look into. The Ministry of Industry and Trade plays a leading role in dealing with international trade issues for Vietnam. The information that Vietnam has provided the World Trade Organization has been very absent regarding Import Licensing. However, since joining the Association of Southeast Asian Nations, Vietnam has taken advantage and exported many of its competitive products such as agriculture, textiles, footwear and furniture. Vietnam trade policy developments have really gave Vietnam some flexibility and as a result V ietnam has used this to their advantage in reducing variation in domestic energy prices to protect some important industries. Vietnam has also levied a special consumption tax on certain goods such as cigarettes, alcoholic, and gambling services to prevent less consumption. Vietnam’s accession into the World Trade Organization equalized tax rates on imported and domestic produced alcoholic beverages. One interest fact that I found out is that trade taxes account for approximately one tenth of total tax revenue for the government (WTO). When speaking about non-tariff goods, Vietnam doesn’t allow for the import of goods that are consider harmful to human health and safety or national security. The Ministry of Industry and Trade is in