Vietnam in an International World of Trade:

The Global Value Chain and World Peace

Structure of Lecture

Central Argument - Foreign Trade Agreements bring stabilizing benefits

World community as a legal entity

Role of international trade

Understanding the Global Value Chain

Value of Global Value Chain

Vietnam and the Global Value Chain

Thoughts and observations

Central Argument

If the objective is to develop the state and improve the quality of life of the people then it is necessary to engage in international trade

When a country enters into international trade agreements, it forces the country to adapt to larger global demands.

As a country undergoes economic development, the country’s people benefit

World community as a legal entityPost World War II

Bretton Woods

United Nations

Development of free trade

Trade oversight

Standards and regulations

Vietnam and the importance of 2007

Vietnam now trade agreements with

US

Europe

Australia

SouthEast Asian neighbors

More

Global Value Chain

More interconnected world = more dispersed supply chain

Companies create products across borders

To develop a country must be able to access international markets

International trade creates standards and certificatations

Vietnamese helped by entering into FTA because it increases transparency

International standards are enforced

Vietnam and the Global Value Chain

Understand that there are different GVCs

Manufacturing sector developed by being a country of outsourced unskilled labor

Manufacturing sector is becoming more focused on skiled labor but their are significant problems with current workers

Tourism sector is thought to be area of growth

Food sector is facing the most difficulties with international trade regime

Thoughts and Observations

If you believe that the best way to develop a country is by making it more interconnected and that the best way to improve people’s lives is with more access to products, then international trade is a good thing.

International trade brings benefits beyond just more access to products. It forces a country to adhere to standards set by the most developed trade nations. If a country wants access to these markets, that country must enfore international standards within its own borders.

Measured by material progress, Vietnam has benefited from entering into the international trade regime. The best evidence is the growth of the middle-class. In a very short period, Vietnamese went from riding bicycles to riding motorbikes and now the number of cars is increasing.