What do you think western countries could do to help improve the business climate in Vietnam?

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thanatassa eNotes educator| Certified Educator

Perhaps the most active attempt by western countries to improve the business climate in Vietnam was the Trans-Pacific Partnership, a multilateral trade deal negotiated by the Obama administration from which the United States abruptly withdrew under President Trump. This trade pact emphasized such things as human rights, curbs on sweatshops, environmental standards, and the right of workers to organize. It also enhanced fair and transparent practices, focused on reducing corruption, and reduced tariff and non-tariff barriers to trade, which would benefit low-wage countries using manufacturing to strive for higher GDP through exports and foreign investment.

There are several problems that Vietnam is experiencing, including corruption and inefficiency. Both of the aforementioned problems could be remedied by western countries helping with business education as well as by western countries cracking down on corrupt practices; if westerners refused to deal with corrupt firms or politicians, corruption would be less profitable. The other major problem in Vietnam is that it tends to export low-value products to China and buy more sophisticated products higher up the value chain. While protectionism is not an ideal solution, it is important to change this dynamic. Western countries might help with forms of technology transfer and creating partnerships with local technology incubators.