HANOI (XFN-ASIA) - Vietnam today became the 150th member of the World Trade Organisation (WTO).

The country hopes its new status as a signed-up member of the international trading system will accelerate economic growth, an official said.

'It is a very important turning point,' said Le Dang Doanh, a senior economist at the ministry of planning and investment.

'Joining the WTO will mean for Vietnam the start of a new phase of reform. It should lead to very dynamic and hopeful development. Of course, there are opportunities and there are challenges.'

Labour-intensive industries will benefit first in the country known for its industrious, low-wage workforce, he said, while capital-intensive sectors will face the stiffest challenges from the entry of outside companies.

'Stronger competitors will come and force Vietnam to be more dynamic and there will be some sacrifices. There will be a limited number of bankruptcies.

'Creative destruction is very important for Vietnam but it's painful. Because the centrally planned economy has so far tried to rescue everybody, now some people must sacrifice.'

Foreign Ministry spokesman Le Dung said Vietnam acceeded to the WTO at a ceremony in Geneva in what he called 'a momentous event in the international economic integration of Vietnam.'

WTO director general Pascal Lamy praised Vietnam for its 'determination, skills and experience in negotiation' and said its spirit was 'what we need for the Doha round,' the stalled series of talks to free up global trade.

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The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business.