Exploring the Role of International Organizations in the Development of Developing Countries, A Case Study of Vietnam

Abstract

Vietnam is considered an important emerging economy in Southeast Asia. After its domestic reform in 1986 (Doi Moi), it continuously deepened its integration into the world economy and achieved great economic development. This paper takes neoliberalism and neorealism as theoretical approaches to analyze two international organizations, the World Trade Organization (WTO) and the Asian Infrastructure Investment Bank (AIIB). Specifically, the analysis focuses on how International Organizations (IOs) affect the course of development in Vietnam. This study aims to provide some references for Vietnam's future economic development and how to seek further development in international organizations. This study finds that by joining WTO, Vietnam achieved remarkable economic growth through trade liberalization. Most importantly, Vietnam gained the ability to negotiate problems on an equal basis with developed countries through the dispute settlement mechanism provided by WTO. The AIIB, on the other hand, gives Vietnam good access to infrastructure loans, but it also raises concerns about Vietnam's balance of power and security in the region. Due to the complexity of the impact of IOs on Vietnam's development, Vietnam needs to optimize its economic structure and relevant institutions rationally and make decisions to balance diverse interests to achieve long-term development and better face possible external crises. Further studies could be conducted on how Vietnam and other developing countries could balance their interests and promote development within IOs.