Vietnam’s Agricultural Reforms in Preparation for WTO Accession: Socialist Ideology in Globalization

Abstract

After many years of negotiation over its accession, Vietnam was eventually admitted to the World Trade Organization (WTO) in November 2006. During that period, Vietnam had to undertake drastic reforms to conform to WTO rules. Does this mean that Vietnam has now abandoned its socialist ideology by conforming to the WTO’s policy of economic globalization?　In order to answer this question, the author of this article analyzes Vietnam’s agricultural policy reforms in preparation for WTO accession.

In seeking conformity, Vietnam had to avoid the use of non-tariff measures, such as import quotas, and was forced to make such “WTO-plus” commitments as avoiding all forms of export subsidies prior to accession. Vietnam has also accepted the designation of a “non-market economy” for up to 12 years after accession, or until it is able to meet the economic criteria to be designated a “market economy.”

Nevertheless, Vietnam succeed in protecting sensitive agricultural products, like the sugar cane and tobacco grown in less favoured areas inhabited by the poor and ethnic minorities. While Vietnam had to eliminate import restrictions on these products, it was permitted to introduce a tariff rate quota mechanism instead. Finally, rice being Vietnam’s staple food and an important export product, permission was granted to maintain high import tariffs and a state-trading export system for food security purposes.

The author concludes that Vietnam never ignored the kind of social equity vital to a “socialist-oriented market economy,” the official definition of its current economic system.