The tax cut ext year is part of the 10,428 categories Vietnam has made commitments to reduce 17.21 per cent on average since it joined the WTO in January this year, of which 1,224 taxes are in the agricultural field, 9,204 duties in industrial areas.
“Implementation of WTO commitments is not easy, and as a WTO member country, Vietnam will have to take part directly in tough negotiations in the future, firstly the Doha negotiation round,” Mr. Xuan noted.
In general, Vietnam has taken a firm integration with adjustments after one year, however, there will be challenges ahead, Mr. Xuan said.
The toughest challenges Vietnam is to face are how to improve competitiveness of its goods in the global economy and to open more its financial and banking, service and telecom markets to foreigners at home, the official expressed his concern.
The government of Vietnam now needs to build an effective integration agenda to maintain the country’s sustainable growth.
After the cabinet reshuffle, the Ministry of Trade and Industry is now shouldering a heavy burden because it will take over tasks and fields left by the former Ministry of Trade for trade and service issues, taxes and duties issues of the Ministry of Finance, agricultural produces of the Ministry of Agriculture and Rural Development and commodities of the former Ministry of Industry, Mr. Xuan affirmed.
The government of Vietnam should outline top priorities with the focus on supporting domestic agricultural production, and farmers.
Significant achievements made by Vietnam since it joined the WTO are sharp growth of foreign investments and exports, the driving forces for the country’s GDP growth rate of 8.5 per cent this year. However, the Asean country has to incur expanding trade deficit, which is forecast to hit $9 billion this year, domestic observers said.