Foreign Economic relations of Vietnam

Vietnam is always good at maintaining relationship with foreign countries. As for example the economic relations of Vietnam with the United States are improving. But the country of course had to face many challenges regarding this. In December 2001 the Vietnam and United States reached a landmark bilateral agreement. And this has boosted Vietnam’s exports to the United States. But it is also true that disagreement over textile and also catfish exports are blocking full execution of the agreement.

There are some barriers to intellectual property and trade and that’s also within the horizon of bilateral discussions. Vietnam’s economic relation with China is of extreme importance and that’s because of china’s speedy economic control. In the year 2004 Vietnam imported more numbers of products from China than from other nation. But in November 2004, the Association of Southeast Asian Nations i.e. ASEAN and China announced plans to set up the world’s largest free-trade area by the year 2010. Vietnam is always a member of Southeast Asian Nations i.e. ASEAN. In the year 2006 Vietnam became a member of the World Trade Organization.

From late 1970s till the 1990s, Vietnam has been seen as a member of the Comecon. After that it has become heavily dependent on trade with the Soviet Union and its allies. Because of the dissolution of the Comecon and of course the loss of its traditional trading partners, there was a force for Vietnam for liberalize trade. The country has to devalue its exchange rate to increase exports, and start a policy of international and regional capitalization.

Exports expanded importantly throughout the 1990s. The growth was as much as twenty percent to thirty percent in some years. In 1999, exports accounted for forty percent. That was an impressive performance in a retrieving Asia. Because of the membership with World Trade Organization, Vietnam was free from textile quotas ordained worldwide as part of the Multi fiber Arrangement.