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Tuesday, 16 September 2008

the problems a british business faces in trying to do business in Vietnam

Vietnam has been given the go-ahead to join the World Trade Organization (WTO), bringing to an end an 12-year journey for the Communist-run state.

The government believes that joining the WTO is vital to the country's chances of maintaining its rapid economic growth and achieving its dream of leaving the ranks of the world's poorest countries by 2010.

But every year the country needs to create a million new jobs for its young population and some economists are worried that the economy may not be able to deliver.

Vietnam is the darling of the international aid community, one of its few development success stories. In the past 20 years it has lifted huge numbers of people out poverty.

In 1998 a total of 38% of the population lived below the internationally-accepted poverty line, but by 2002 that was down to 29% and in the past few years it's fallen even further.

'Making a difference'

In the village of Doc Lap - two hours drive from Hanoi - economic development means electricity, a new road, a new school and a better clinic.

Doc Lap used to be among the poorest places in Vietnam - now it is part of the success story - the road means farmers can sell their produce more easily, the school means children can get better jobs and the clinic means fewer days spent off work.

For the moment we import the vast majority of our parts from south-eastern China because industry in Vietnam is still immature
Sachio Kageyama, Canon Vietnam

The British Overseas Development Minister, Hilary Benn, was impressed with what he saw in Doc Lap.

"What's special about Vietnam's development is that the government took a decision on the direction in which it wanted the country to go, it opened up the economy and they are very focused on doing the things they know will make a difference."

Over half of Vietnam's population still lives in villages but increasingly they are moving to towns and cities in search of better-paid work.

Tens of thousands have become itinerant construction workers, moving from one job to the next and living in bamboo shacks next to their current building site.

1 comment:

chris sivewright said...

This does not explain the problems of doing business in Vietnam - but it looks nice.

So, THINK before you write!