Vietnam Trades Up

China and Vietnam are two dragons in Asia, sharing similar rumbling characteristics.

While China Annual GDP growth reach close to 9% for several years, Vietnam reach 8% from 2003-2006.

China exports annual growth reach 25.5% for 2001-2005 and Vietnam ranked second in Asia, reached 17.7% and overtook India.

Despite the uncertainties, optimism over Vietnam’s economic prospect runs deep.

To gain WTO entry, Vietnam made greater concessions than other nations have been required to make upon joining, agreeing to lower trade barriers, reduce many subsidies and allow virtually unfettered foreign competition in some sectors of its domestic economy. It’s tougher deal than even China got. Local industries and business will need to withstand the foreign competitions.

Vietnam economy is characterized by culture of corruption, secrecy and state intervention.

Vietnam does not have any deep-water port to handle the new larger super container ship, most exports must first go to Singapore before shipping to US and Europe, meaning more expensive and delay.

With the WTO membership promising even up the odds, Vietnam is ready to rumble.