The fact that more trade barriers are being erected against Vietnamese goods means that the country’s economy, specifically exports, are growing well, said Susan C. Schwab, a former US Trade Representative.

“This is a mixture of good and bad news, and is ironic regarding actions that have been taken in anti-dumping and injurious imports around the world given rising exports from emerging markets, including Vietnam,” Schwab said.

“This is the second time I have been in Vietnam after my first visit in 1995. A lot has changed since then, signaling that Vietnam is a vibrant economy,” she said at a recent seminar.

The event, "Dealing with Trade Remedy Cases and Protection Against Injurious Imports", was co-organized by the branch of the Mayer Brown JSM law firm in Vietnam and the Vietnam Chamber of Commerce and Industry in Ho Chi Minh City late last week.

The other side of the coin

If the volume of Vietnamese goods being imported into the EU, the US and Brazil was not rising, then there would be no such trade disputes or anti-dumping cases against Vietnamese exporters, she said.

In the big global picture, exports from the developing world to the developed world are also increasing.

“However, looking into statistics, we will see an increase in the use of anti-dumping actions to counter the negative effect of dumping by emerging economies against one another given the enhanced trade relationships between them” she added.

It is a clear signal that those economies, including Vietnam’s, are faring well. The success in economic growth is a combination of entrepreneurial success.

Just take the milestone of when Vietnam started to trade with the US in 2001, and the entry of Vietnam to the World Trade organization in 2007. Two-way trade between the two countries has grown rapidly ever since.

According to the American Chamber of Commerce (AmCham) in Vietnam, US-Vietnam trade has undergone a substantial rise over the last 12 years, from only $1.5 billion in 2001 to $9.7 billion in 2006 and over $22 billion in 2011.

Total two-way trade revenues between Vietnam and the US reached about $24 billion in 2012.

Betting on TPP

Negotiations over the Trans-Pacific Partnership (TPP) agreement, the newest adventure undertaken by 12 countries, including the US and Vietnam, were kicked off in September 2008 when Schwab was still working as a US Trade Representative. 

TPP will have an effect on the global flow of goods, services, investment, and supply chains, and its provisions cover trade issues arising at the borders and beyond of involved countries.

Unlike otter trade deals, state-owned enterprises (SOEs) will also be a focus of TPP.

However, the question here for Vietnam is not the privatization of SOEs, but that it is possible for state-owned firms to compete head-on with those from the private sector to ensure a level playing field.

In addition, Vietnamese businesses, especially exporters, will be among the biggest beneficiaries of the TPP. The agreement will get rid of many trade disputes against them.

“The country is currently the lowest-cost producer among the 12 countries taking part in the TPP, so it will gain virtually unrestrictive access to the 11 other markets, including some sensitive areas,” she said.

Given the fact that Vietnam is now facing fiercer competition from Bangladesh and Myanmar in the world market, the country will have an edge over these two rivals after joining the TPP.

The TPP will also offer Vietnam a chance to move up in the global value chain, which will attract more foreign investments.