Context for Strategy and Rivalry Openness - High level of economic openness The economic reforms ushered in by the doi moi initiative in the late 1980s opened the economy to privately-owned firms. Subsequent policy developments went further to encourage private enterprise, and to reduce the role of stateowned enterprises (SOEs). Vietnam began to integrate substantively into the regional and international trade and economic system by becoming a member of the ASEAN Free Trade Area (AFTA) in 1996. However, the breakthrough lever in its integration process was actually the signing of the Bilateral Trade Agreement with the U.S. (US BTA). Vietnam has fully participated in the global economy and trade since its accession into the World Trade Organization (WTO) in 2007. As discussed in chapter 2 Vietnam is one of the most open economies in the ASEAN region both in terms of trade and foreign direct investment. Vietnam has removed most of its trade and investment barriers in compliance with its integration commitments. For example, the amended Enterprise Law (2005) has superseded previous laws and put all enterprises of different segments (FDI, SMEs and SOEs) under a common legal framework. In some cases, especially at the provincial level, FDI firms receive even more privileges and special treatments than local private firms, such as lower tax rates or access to land.