Name: Văn Dũng Tuấn

Student ID: 31211026353

Students answer the following question with no more than 1000 words.

1. Analyze the positive effects of globalization on Vietnamese firms, especially since

Vietnam joined the WTO?

There are many concrete positive effects of globalization on Vietnamese firms.

Globalization promotes the development of many aspects of the economy:

• Encourage comparative advantages and growth

Businesses are forced to find ways to develop in the face of fierce competition brought by
globalization. They have to study, research and develop business products, business forms,
marketing methods, etc. For example, the retail market in Vietnam has had many great
changes thanks to e-commerce, changing from word to word. from on-site retail to a
combination of on-site and online retail thanks to retail apps such as Shopee, Tiki, Lazada,
etc. Many new forms of marketing have also emerged such as sales livestreams, and new
product introductions. through social networks or organize online music shows that attract
millions of viewers.

• Raise technical and scientific level

While integrating and cooperating with foreign businesses, we have the opportunity to
contact, get acquainted and learn new technical technologies of advanced countries from
which to draw important knowledge to improve supply the production lines of the enterprise.
For example, the traditional production line has been changed to an automatic production line
by using machine systems such as automatic processing machines, automatic assembly
machines, self-propelled vehicles, conveyor systems. , industrial robot arm, production
management system, etc. Since then productivity and precision in production are increased
many times.

• Enhance investment capital

Globalization has opened up two opportunities, firstly opening up potential new markets
for foreign investors, secondly creating opportunities for Vietnamese enterprises to attract
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more foreign capital, bring more foreign capital and bring more investment to foreign
investors. giving businesses many opportunities to expand globally. Vietnam strongly attracts
foreign investment thanks to a stable and transparent environment. In 2006, the registered
capital reached over 10 billion USD, in 2007 reached 21.3 billion USD and in 2008 it
increased to 64 billion USD. Vietnam continues to attract a large amount of FDI over the
years. Especially in 2020, Vietnam entered the top 20 countries attracting the most FDI in the
world, ranked 19th - up 5 places compared to 2019 (according to UNCTAD, 2021). By the
end of 2021, Vietnam has attracted 34,527 FDI projects from 140 countries and territories,
with a total registered capital of 408.9 billion USD.

• Clear trade policies and procedures

The WTO global system has reduced trade barriers through negotiation and the application
of the principle of non-discrimination. The result is lower production costs, lower prices for
finished goods and services, and ultimately a lower cost of life. So far, trade barriers have
been much reduced compared to the past. These barriers continue to fall and we all benefit.

• Easy, fair, and balanced trading conditions

The WTO actually reduces some of the inequalities, giving smaller countries more say.
WTO decisions and agreements are made by consensus. These agreements apply to everyone.
Both rich and poor countries can be questioned if they violate a treaty, and they have the right
to question other countries in the WTO dispute settlement process. Economic powers can use
the single forum of the WTO to negotiate with all or most of their trading partners at once. In
fact, there is a single system of rules that applies to all member countries, which greatly
simplifies the entire trade mechanism.

• Export and import

After joining the WTO, Vietnam has signed many trade agreements, boosting the
economy by a big step.
*About export
In the 2007-2020 period, commodity exports grew rapidly, reaching an average of 15%
per year. The scale of export turnover increased from 48.6 billion USD in 2007 to 176.58
billion USD in 2016, reaching approximately 282.7 billion USD in 2020.

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 *About import
In the period 2007-2020, import of goods increased by an average of 14.2%/year. Import
turnover from 62.8 billion USD in 2007, increased to 174.8 billion USD in 2016, reaching
262.7 billion USD in 2020.