Vietnam's WTO membership begins

Vietnam says the move will give its goods access to foreign markets

Vietnam has become the 150th World Trade Organization member after a 12-year wait, amid concerns about the effect it will have on the economy.

Membership will give Vietnam greater access to overseas markets but will also require it to cut import tariffs.

Supporters of the move say it will help boost exports in key food and textile industries and attract investment.

Critics have argued that the increased competition will damage local firms and producers such as livestock farmers.

In the lead-up to Vietnam's World Trade Organization (WTO) membership, officially sealed on Thursday, overseas firms increasing their presence in the country and foreign direct investment reached $10bn (£5.1bn) in 2006.

'Historic day'

Vietnam is one of South-East Asia's fastest growing economies and had its WTO membership approved in November.

The membership first had to be passed by Vietnam's Communist-dominated national assembly.

Joining the WTO was "a historic day for the country," said Le Dang Doanh, a key government economist.

"In joining the WTO, Vietnam is accepting increased competition, and competition will make the economy more dynamic," he added.

The government's positive outlook was not echoed by Nguyen Van Thoai, deputy manager of Saigon Cosmetics.

He estimates that the maker of perfumes and toiletries will see its market shrink by 20% once Vietnam becomes a WTO member.