Vietnam joined the World Trade Organization (WTO) in 2007 and has since signed numerous multilateral and bilateral free trade agreements (FTAs) with various countries, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU-Vietnam Free Trade Agreement (EVFTA), and the Vietnam-US Bilateral Trade Agreement.

Dr Cong Pham noted that the signed FTAs have increasingly integrated Vietnam into the global economy and its stringent competitive rules and has encouraged it to adopt practices of free competition.

According to Mr. Cong, another proof that Vietnam has rapidly transitioned from a centrally planned economy to a market economy is the emergence of private companies and startups.

He mentioned six more factors that prove Vietnam is a market economy. The private sector has grown rapidly, and now accounts for nearly 45% of GDP, contributes one-third of the state budget, provides 40% of investment capital, and employs 85% of the country’s workforce.

Vietnam has reformed its foreign investment laws and developed a competitive market environment across various sectors. The legal framework has evolved to support the growth of the private sector, while Vietnam’s financial market is growing rapidly, with significant increases in stock market capitalization.