e and conducive region for economic development. Moreover, it allows Vietnam to be integrated with the region as part of its transition to a market economy. In economic terms, Vietnam should enjoy substantial economic growth and investment due to its comparative advantages such as a good source of cheap labour and natural resources and a large domestic market. As such, Vietnam can complement the capital-rich and technology-rich countries. However, there are some areas for further improvements before Vietnam can enjoy the benefits of free trade. Although Vietnam has embarked on privatization of some of its SOEs but the process has been slow and cautious. Next, Vietnam’s public administration and existing economic still geared for a centrally-planned economy thus may hinder its ability to fully take advantage of the opportunities under ASEAN and AFTAIn addition, Vietnam has sought World Trade Organization (WTO) accession in January 1995. The benefits of joining WTO can encourage better allocation of resources towards industries with the highest comparative advantage; enhanced learning technology through interaction with the rest of the world; greater flexibility via trade and less wasteful rent-seeking activities by groups seeking government assistance and protection. Therefore, it can boost the overall economy of Vietnam. Moreover, to join WTO, a country needs to commit itself to free trade henceforth by doing so Vietnam can increase investor confidence to invest in the country leading to a rise in per capita income. Also, there are good reasons to focus on the impact of Vietnam’s WTO accession on agriculture and rural development since 80% of the population live in rural areas, 40% of exports are agricultural-based and more than a quarter of GDP is generated by farmers .The economy had come a long way from a totalitarian non-price system to the border of the free-market world through commodity marketization, price control a...
