Vietnam ratifies WTO membership

WTO membership will mean an end to rice, textile and coffee quotas

Vietnam's legislature has ratified its entry into the World Trade Organisation (WTO), paving the way for the country to become the group's 150th member.

The overwhelming National Assembly vote in favour of the move, came three weeks after it was invited to join the WTO.

The move will give the country more access to overseas markets but will force it to cut high import tariffs.

Vietnam is Asia's strongest performing economy after China. Its economy is expected to grow by 7.8% in 2006.

"WTO membership will bring about tremendous opportunities for Vietnam," President Nguyen Minh Trie said.

"It also creates momentum to boost foreign investment and elevates Vietnam's status in the international community."

Increased competition

Vietnam's membership of the group will come into effect on 28 December. It has been trying to join the trade group for more than a decade.

Some businesses will even face bankruptcy Vietnam trade minister Challenges facing Vietnam

While the legislature welcomed the development, trade minister Truong Dinh Tuyen warned it would also mean that Vietnamese businesses would have to face up fierce international competition.

"Products against products, businesses against businesses. The pressure will be on each business, household and organisation," he said.

"Some businesses will even face bankruptcy."

However, he added that WTO membership would also lead to the removal of textile trade quotas and a more "transparent and flexible business environment" which should attract more foreign investment.

Communist-run Vietnam, which has a population of 84 million, is one of the fastest growing economies in the world after China.

The Asian Development Bank expects its economy to grow by 7.8% this year.