Gaining membership to WTO in November 2006, Vietnam has proven their success in the trade liberalization process. Since 1995, trade liberalization has taken off in the economy and has become the most crucial economic goal of the government. During the past 20 years. Vietnam has set up trade relations with 165 countries, signed bilateral trade agreements with 72 countries. Using Granger and Sims tests, the empirical analysis undertaken in this study has shown that GDP and FDI do not have causal relationship. No causal relationship is found between FDI and both export and import. However, GDP Granger causes both export and import. Also, GDP has a unidirectional relationship with export and a bidirectional causal link with import. Due to the empirical results, it is recommended that the Vietnamese government should reconsider the effectiveness of their export policies as exports growth is not strong enough to cause GDP to grow. There are a number of opportunities that trade liberalization has been brought to Vietnam such as achieving productivity growth, expanding export and investment markets, 'improving the economic position and enjoying equal treatment in global trade conflicts. Alternatively, Vietnam has to face various challenges in the course of global integration such as confronting fierce competition, facing a number of difficulties regarding human resources and a number of risks including economic and socials issues.
It is however recommended that Vietnam continue to progress on their trade liberalization development but be aware of the current challenges and threats to the economy. This would enable appropriate policies to be in place especially when Vietnam has been in her most exciting transition period of achieving the goal of completely becoming a full WTO member by the end of 2006.