on the Future of Vietnam after WTO Accession
The information revolution in the last decades of the 20th century eliminated many barriers that existed among states, establishing an interdependent world. This change produced a new dynamic in the global economy and formed the fundamental basis for international competition in the 21st century. All states must increase economic productivity in order to enhance their competitiveness on a global scale. For such reasons, economic development and trade are increasingly pursued through international and regional blocs. In order to avoid economic disadvantage and to benefit from the increasingly competitive global environment, the fundamental issue is to increase national economic productivity and actively pursue economic integration.
The Vietnamese Communist Party has not been able to reverse the trend, but instead has been pulled towards these changes. Vietnam has become the 150th member of the World Trade Organization and its long anticipated membership was announced whilst the Vietnamese Communist Party hosted the 14th APEC Summit in Hanoi. Such events indicate that Vietnam’s integration into the international community has, to some extent, been completed. However it is the future of this integration that is currently a matter of concern for those with the country’s long-term interests in mind.
Membership in the WTO, in theory, will bring three main benefits to Vietnam’s economy:
Firstly, Vietnam will gain increased access to export markets, including the United States and Europe.
Secondly, Vietnam will be in a better position to attract foreign direct investment.
Thirdly, there will be increased pressure for economic and administrative reform.
In addition to the potential benefits above, Vietnam will need to contend with the following challenges:
First is that workers will still not have the means to protect their rights. Foreign companies will establish operations in Vietnam to gain access to inexpensive labor. The priority of these companies will not be the rights or employment conditions of Vietnamese workers. The propensity for collaboration between representatives of the government-controlled labor union at the local level and government officials at the central level with foreign corporations will result in workers being exploited and not fully benefiting from economic integration.
Second is that the benefits from economic integration will be concentrated within the ruling minority. Cooperation between authorities and “red capitalists” will mean that peasants and small, privately-owned businesses, which do not form part of this exclusive network, will not enjoy a level playing field. There is also currently no mechanism in place to monitor the privatization of state-owned enterprises. The result is that the nation’s assets will inevitably become the private assets of those in power. In a number of regions, land owned by peasants have been appropriated by authorities, and subsequently leased to foreign investors. Obviously, behind such contractual arrangements there are also private benefits for those involved.
Third is that certain industries that face intense competition inevitably will be hurt. When Vietnam’s markets open, all domestic firms will need to compete on equal terms with foreign companies. It is likely that the Government will provide financial assistance and subsidize losses for state-owned enterprises. Meanwhile private enterprises that have only just emerged will not benefit from the same protectionist policies. This will mean that many domestic firms may incur substantial financial losses or face insolvency, because of their inability to compete effectively. The outcome is that a large number of people will become redundant, and such unemployment will negatively impact on society as a whole. The Government currently does not have a comprehensive training program or welfare net in place to assist the unemployed retrain and attain work.
Fourth is the risk of environmental degradation, which will have long and lasting consequences for later generations of Vietnamese. Current policy trends indicate that the leadership in Vietnam will adopt a development program, similar to that of China’s, which is not geared toward environmentally sustainable development, but only has short term benefits in mind. In respect to foreign companies, aside from the inexpensive labor cost, the fact that there is little or no requirement to adhere to environmental policies or regulations, is another aspect that attracts investors to countries like China and Vietnam. Research indicates that only after ten years of industrial development in China, one third of the country now experiences acid rain, more than half of rivers are severely polluted, and more than 300 million people do not have access to clean drinking water. As a result, there is a high incidence of disease which will transmit to later generations.
Fifth and most important is that that the Vietnamese Communist Party continues to consciously hinder the nation from progressing forward. This is the most difficult of all challenges. Guided by the objective of maintaining power and serving the interests of the ruling minority, the Vietnamese Communist Party’s policies will continue to hinder the nation’s ability to fully integrate into and benefit from the global economy, specifically because:
The Vietnamese Communist Party continues to cede economic rights to Beijing in exchange for political support after the surrender of land and sea territory, and the forfeiture of fishery zones to China in 2000.
The Vietnamese Communist Party continues to control all forms of media to restrict the people from accessing information and knowledge, particularly through the Internet.
The Vietnamese Communist Party continues to impede independent activities in the areas of society, religion, politics and culture. Such restrictions have caused civil society to stagnate, rendering it ineffective in contending with the negative consequences of the economic changes.
The Vietnamese Communist Party continues to abuse the legal system for its own ends at all levels of government. In addition to the economic costs, this is an environment in which various forms of corruption thrive.
Thus, those who profit most from Vietnam’s accession to the WTO and further engagement with foreign corporations are authorities and “red capitalists” with repercussions for the nation’s long-term interests.
In the face of such challenges, what course of action do we need to take?
Vietnam has entered the WTO. This is an outcome that cannot be reversed. However if the people of Vietnam do not actively work for change, the Vietnamese Communist Party itself will never truly allow the country to integrate into the developed world. Meanwhile the Vietnamese Communist Party will have accumulated more resources to further strengthen their power and bribe supporters of the regime. Therefore to speed up the end of the Communist dictatorship and prevent long-term damage to the nation’s future, the Vietnam Reform Party proposes that compatriots residing both within the country and abroad, pro-democracy forces and political parties consider the following actions:
First, fully utilize technology to eliminate restrictions on access to information imposed by the Vietnamese Communist Party. Find and create opportunities to assist people within the country to gain access to information that will enable them to understand international political and social norms.
Second, appeal to the social responsibility codes of international corporations to lobby for the establishment of independent labor unions, able to protect and advocate for the rights of workers. Demand the right to create independent agricultural associations or chambers of commerce to enable producers to directly trade with foreign companies.
Third, raise awareness of social issues that are currently prevalent in Vietnam. Collaborate with international organizations to establish more NGOs in Vietnam, to provide social and humanitarian services, as well as assist those who have been marginalized as a result of economic development. This is the first step in establishing a civil society. In addition, encourage people to unite with existing pro-democracy forces to collectively advocate for freedom, democratic transition and an end to Communist dictatorship.
Fourth, utilize the media to expose those authorities or security police involved in unlawful and underhanded business activities. The names of such individuals and their businesses need to be collated and published on the Internet, so that people can boycott their products and services. This is a necessary step to neutralize groups that continue to safeguard and support the regime. Also, encourage people to use their civic rights, as expressed in the Constitution, to draw attention to abuses of power and breaches of law committed by authorities.
Finally, actively pursue opportunities for collaboration between compatriots living inside the country and abroad in environmental conservation initiatives for the benefit of later generations. Vietnamese communities worldwide may organize campaigns to protest corporations that do not have eco-friendly production/manufacturing processes in place, while their counterparts in Vietnam can expose authorities that waive such responsibilities for companies.
Membership in the WTO may be considered an opportunity for the country. Whether this opportunity benefits the people, contributes to the development of the country, and at the same time protects the long-term interests of the people depends on our individual actions. It must be noted that even a liberal government that possesses goodwill will not always be able to fulfill its responsibilities, let alone a corrupt and dictatorial regime like that of the Vietnamese communist regime. Vietnam’s future in the global economy and its membership in the WTO will no doubt pose many thorns. Thus, it is only with a democratic government that truly serves the people and acts in the national interest will there be any hope that future generations of Vietnamese will not have to pay too dearly for the mistakes of their forefathers.
The Vietnam Reform Party respectfully calls on compatriots both within the country and abroad, pro-democracy forces and political parties to share in this view and unite in action, with the ultimate goal of ending the communist dictatorship, to reform our beloved Vietnam.
December 10, 2006
Vietnam Reform Party
