The Socialist Republic of Vietnam's accession on 11 January 2007 to the World Trade Organization was not an isolated foray into the global trading system, but rather the culmination of nearly twenty years of incremental integration and adjustment to WTO standards through preferential trade agreements. Vietnam is a fascinating looking glass through which to examine the dynamics, benefits, and drawbacks of preferential trade agreements. As this chapter will illustrate, PTAs, and in particular the bilateral agreement between Vietnam and the United States, provided a critical stepping stone towards Vietnam's WTO accession. On the other hand, these same PTAs expose Vietnam to the problems generally associated with PTAs, such as the potential for trade diversion, increased regulatory complexity, and resource strain. These are the 'stumbling blocks' to the type of genuine, multilateral, less trade restrictive possibilities offered by the World Trade Organization. Although its place in the WTO is secured, and its overall trade and development prospects are still very positive, Vietnam remains a relative newcomer amidst the region's 'fuzzy, leaky trade blocs', and needs to make the difficult decision as to whether to join the PTA frenzy or exercise restraint.
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