Future Trends in Viet Nam’ Subsidy Policies in WTO Defined

An international seminar titled “Viet Nam in WTO: Future Trends in Subsidy Policies” was organized in Ha Noi on October 4.

The event, jointly organized by the Development Cooperation Office of the Embassy of Italy in Hanoi and the Ministry of Trade, marks the end of the two-year-project on “Technical Assistance to Facilitate Viet Nam’s Accession to WTO”, financed by the Italian Ministry for Foreign Affairs for a total amount of about 752,000 euros.

Participants were introduced to the project activities and their results related to specialized training in international trade law, research on subsidies in the agricultural and industrial sectors, intermediate seminar on antidumping measures, and the debate over future subsidy policies in the agricultural and industrial sectors in the forthcoming accession to  WTO.

“Viet Nam’s accession to WTO will be a turning point for the country's economy, defining its integration in international markets and important political relevance, since the whole international community has been recognizing Viet Nam as a mature country, ready to compete on equal terms within the global market, ” confirmed H.E. Mr. Alfredo Matacotta Cordella, Ambassador of Italy during a press conference.

According to Professor Claudio Dordi, Director of the Technical Assistance Project, the only solution to avoid the possible side effects of the confrontation with a world-scale economy is to enhance the enterprises’ competitiveness and efficiency.

“The research results clearly showed that current subsidies are totally irrelevant if they are not supported by a steady increase in efficiency. It is necessary to implement new subsidy policies, which could favor specific sectors, such as technological modernization, vocational training, infrastructures, at the same time promoting the “sustainable development of the country economy”, he added.  

This point was further stressed by Mr. Luong Hoang Thai, Deputy Director of the Multilateral Trade Policy Department of the Ministry of Trade and Ms. Nguyen Thi Quynh Nga, Research Director, saying that “the World Trade Organization only regulates subsidies on products for export, thus having no influence at all on domestic production”.

In the afternoon, two round table sessions were specifically structured to promote the discussion on the role and content of subsidies in the post-accession phase among relevant organizations, institutional representatives, representatives from enterprises and associations.

Final conclusions of the event will be an integral part of the guidelines on subsidies that the project team will submit to the Ministry of Trade.

Viet Nam’s economic growth and integration is one of the main focuses of the Italian Development Cooperation in Viet Nam. In recent years, the Italian Government has implemented several projects favoring the development of small and medium-sized enterprises.

Source: Embassy of Italy in Ha Noi – Translated by Trong Khuong

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