In addition, the IMF has estimated that as much as 70 percent of Foreign Direct Investment actually is debt, not equity. In itself, this is not overly troubling. Vietnam's debt service payments are estimated at 16 percent of exports, well within a manageable range. Vietnamese officials have stated many times that the country is committed to adopting international trading and business practices and to integrating itself into the world economy. Nevertheless, Vietnam still has significant tariff and non-tariff barriers to trade.
Tariffs are relatively high and are based on imputed rather than actual cost.
The government runs a complex, highly non-transparent system of trade licensing which applies to all imports, as well as to exports of rice. Licenses are required yearly for each commodity to be exported, although the permits required in the past for each shipment have been dropped. Around 25 percent of the state budget comes directly from import taxes. Despite relatively high literacy, foreign employers often note the work force requires extensive training. Few workers in Vietnam, government ministers included, have much experience working in a Western business environment.