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PRESENTATION ON TRADE POLICIES IN 2017

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A set of rules, economic and administrative measures, which are used to fulfill the national objectives in its trade area Area of a trade policy: IMPORT EXPORT National objectives: Economic Integration Competitiveness position Tariff, Quotas, TBT, Antidump legislation Subsidies, Exchange rate….

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 Cao Đình Hồng Châu

www.themegallery.com

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TRADE POLICY

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Tariff, Quotas, TBT, Anti-dump legislation

Subsidies, Exchange rate…

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TRADE POLICIES

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TRADE POLICIES

Free trade policy

Definition:

Traders can act and transact

without interference from

Features:

•Trade activities are free

from trade instruments of

Traders act and transact

producers.

Features:

•Trade activities are intervened with trade instruments of gov.

•Imports are limited and exports are encouraged

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• Good & services:

• Market: volatility

• Strong pressure on local producers

BARRIERS

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• Causing trade injuries

- Reducing total world trade, global

integration

- Cutting local consumer benefits

BARRIERS

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•Carrying on specialization based on nation’s

advantages

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Inward oriented trade policy

development of

strategic industries

• Mobilize and promote

all national potential

• Insufficient economy due to resource

dislocation

• Unbalancing the BOP

• High national debt

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Outward trade policy

• Strongly influenced

by world conditions

• High volatility in market

•Effective specialization

•Higher competition

•Balancing the BOP

•More FDI

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Outward Trade Policy

TYPES OF OUTWARD TRADE POLICY

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GLOBAL TREND

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GLOBAL TREND

THE WORLD TRADE IS INCREASING GRADUALLY

GLOBAL TREND

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GLOBAL TREND

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TRADE AS A PERCENTAGE OF GDP ALSO INCRESING DRAMATICALLY

GLOBAL TREND

GLOBAL TREND

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- Openness index of some developed countries

GLOBAL TREND

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GLOBAL TREND

Openness index of some emerging countries

GLOBAL TREND

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THE WORLD TARIFF RATES IS GOING DOWN

GLOBAL TREND

GLOBAL TREND

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GLOBAL TREND

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GLOBAL TREND

In overall, the world is following

the free trade policy

GLOBAL TREND

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PROTECTIONISM IS ACCUMULATING

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www.themegallery.comGLOBAL TREND

PROTECTIONISM IS ACCUMULATING

Technical Barriers to Trade (TBT)

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www.themegallery.comGLOBAL TRENDS

PROTECTIONISM IS ACCUMULATING

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The number of anti-dumping actions is still high

GLOBAL TREND

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www.themegallery.comGLOBAL TREND

Trades concerns is escalating

PROTECTIONISM IS ACCUMULATING

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GLOBAL TREND

Though the world tariff rates is

declining, more and more non-tariff

measures are being imposed.

PROTECTIONISM IS ACCUMULATING

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GLOBAL TREND

The developing countries still keep a

high tariff rates , though they are trying

to reduce it.

PROTECTIONISM IS ACCUMULATING

The developed countries prefer to

use non-tariff rates barriers.

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GLOBAL TRENDTRADE PATTERN

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GLOBAL TREND Agricultural raw materials exports (% of merchandise exports)

TRADE PATTERN

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GLOBAL TREND Food exports (% of merchandise exports)

TRADE PATTERN

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GLOBAL TREND

TRADE PATTERN

High-technology exports (% of manufactured exports)

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DEVELOPING COUNTRIES

NEPAL

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Oilseeds, fats & oils 166

Sugars and confectionery 124,7

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INDONESIA

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GLOBAL TREND

US

DEVELOPED COUNTRIES

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GLOBAL TREND

JAPAN

DEVELOPED COUNTRIES

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TRADE PATTERN

-

GLOBAL TREND

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VIETNAM’S

TRADE POLICY

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VIETNAM’S TRADE POLICIES

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1/ TRADE POLICY

VN foreign policy: Proactively and

actively engage in international

economic integration.

VN mixed trade policy: VN is mainly

following liberalization (free trade), but in some areas still somehow protectionism.

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Free trade

agreements: USA BTA(2000),

VN-EU(1995)

(approved 2005), Allow foreign

investment (1987)

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Source: WTO

Free trade

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Source: WTO

Free trade

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Source: WTO

Somehow protectionism

Part A.2 Tariffs and imports by product groups

Final bound duties MFN applied duties Imports

Product groups

AVG Duty-free Max Binding AVG Duty-free Max Share Duty-free

in % in % in % in % in % Animal products 14.8 7.2 40 100 14.6 6.9 36 0.1 3.8 Dairy products 16.6 0 35 100 12.8 0 20 0.6 0

Fruit, vegetables, plants 20.5 7.9 40 100 24.4 8.8 40 0.6 7.9 Coffee, tea 26.8 0 40 100 29.8 0 46 0.0 0

Cereals & preparations 20.9 2.5 80 100 21.6 7.4 40 1.4 31.1

Oilseeds, fats & oils 11.5 1.3 35 100 8.6 15.3 30 2.1 61.4 Sugars and confectionery 33.3 12.5 100 100 15.8 12.5 40 0.2 11.9

Beverages & tobacco 50.2 0 135 100 50.0 0 145 0.3 0

Cotton 14.0 20.0 20 100 6.0 40.0 10 0.4 99.4 Other agricultural products 7.4 23.3 20 100 6.8 36.4 26 0.7 19.1

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Source: WTO

Somehow protectionism

Fish & fish products 18.1 1.3 35 100 25.7 1.1 36 0.6 0.2

Minerals & metals 11.0 12.2 60 100 8.6 38.6 49 23.2 57.2 Petroleum 34.2 0 40 100 13.5 14.2 20 10.7 33.7 Chemicals 6.1 9.0 27 100 4.2 62.8 41 12.5 52.4 Wood, paper, etc 11.8 13.0 25 100 13.5 23.3 37 3.4 43.4 Textiles 10.5 0.3 100 100 10.0 9.5 100 8.9 3.2

Clothing 19.9 0 20 100 19.7 0 20 0.2 0

Leather, footwear, etc 14.2 1.8 35 100 15.4 11.9 47 2.9 14.9 Non-electrical machinery 5.8 34.8 50 100 4.0 65.2 50 13.7 60.6 Electrical machinery 9.6 32.1 35 100 10.9 37.6 40 10.0 48.2

Transport equipment 22.0 21.8 200 100 18.9 38.6 90 4.7 31.1

Manufactures, n.e.s 10.3 37.4 35 100 12.1 40.4 47 2.7 54.3

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2/ EVALUATION

Defects Achievements

Vietnam’s Trade

policy

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In general

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In general

Wikipedia

Vietnam & Bangladesh:

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In general

www.themegallery.com

Enabling Trading Index: leap 18 places to 71th position

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In general

Source: WTO database

Vietnam’s openness index increases rapidly after years

Vietnam openness index compared with Bangladesh

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Economic Growth

Source: World Bank database

Vietnam is in the front rank of GDP growth

Vietnam GDP growth rate compared with that of the world

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International Trade

Source: World bank database

Vietnam EPI compared with Bangladesh

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Trade deficits Foreign Investment

policy

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Non-market economy

www.themegallery.com

Vietnam is still considered as a non-market economic according to WTO agreement (12 years after VN’s participation).

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Trade administration

Source: world Economic Forum

(Rank out of 125 countries- Global Enabling Trade Report)

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Trade deficits

Source: Vietnam General Statistics Office

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Foreign investment policy

www.themegallery.com

There’re some limits in some economic sectors, like electricity, aviation, finance…

The role of the government is still critical

Openness to foreign participation is limited because of the low prevalence of foreign ownership and limited participation in multilateral trade rules.

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period

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