VIETNAM: THE LITTLE ASIAN TIGER SETS ITS SIGHTS ON THE WORLD TRADE ORGANIZATION KAI BURMEISTER In brief • Vietnam, subscribing to an export-driven growth strategy, has set it sights on full membership in the World Trade Organization(WTO) by 2005. • Apart from crude oil, Vietnam's successful export goods include agricultural products such as rice and coffee, aquacultural produce, and textiles and footwear. • Vietnam's trade structure is that of a classic developing country. The country imports higher-grade goods and primary products for its export industry, exporting labor-intensive goods and agricultural produce. • At present Vietnam is engaged in the phase of bi- and multilateral negotiations on market access; capacity deficits are making themselves felt. • The WTO accession process has forced Vietnam to embark on a comprehensive course of restructuring both government and the economy, a process which has involved closure of obsolete state-owned enterprises and creation of new FDI-financed businesses. • This restructuring process will entail growing unemployment and increasing labor conflicts. Labor unions are therefore faced with the challenge of developing into a capable and active representative of the interests of the working population. The overall economic picture With its annual per capita income of US$ 410, Vietnam is one of the world's poorest countries. In recent years, however, the country has consistently achieved high economic growth rates of around 8% p.a. This success is due largely to disproportionately high growth rates in the export sector. This is remarkable in view of the fact that until 1990 Vietnam's foreign trade was largely geared to other COMECON countries. The first steps toward opening up the economy were initiated in 1986, with the start of the so-called„Doi Moi phase”, the goal of which is to restructure the country's centrally managed planned economy with the aim of developing a„socialist-type market economy“. The decisive factor for Vietnam's development is agriculture, and some 80% of the population live in the countryside. A large majority of the working population is either self-employed or active in cooperatives in the agricultural sector. Private companies and especially FDI-financed companies in other sectors have thus far played only a limited, albeit increasingly important, role. In recent years Vietnam has become increasingly integrated in world trade. This is illustrated both