Vietnam, business leaders hail historic US trade vote
Vietnam praised a historic vote in the US Congress Saturday that fully normalized trade between the two nations, a final milestone in the process of reconciliation between the former foes.
"This event is of major significance for ties between Vietnam and the United States," said Le Dzung, spokesman for Vietnam's Foreign Ministry.
Nguyen Tuong Van, who works for Vietnam's legislative National Assembly, said the vote was a "landmark" in bilateral relations between the two nations.
"The bill passed by a wide margin, which shows the goodwill of the US Congress toward Vietnam," Van said.
The US Senate cleared legislation early Saturday Washington time that included the so-called PNTR measure, which grants Vietnam "permanent normal trade relations," hours after the House gave its approval.
The legislation still must be signed by US President George W. Bush.
The approval of PNTR measure ensures that US companies will receive the same access to the Vietnamese market as those from other countries as part of Vietnam's accession to the World Trade Organization later this month.
Last month, Vietnam called a failed House attempt to pass PNTR “very regrettable.”
Significant step forward
Spokesman Le Dzung said, “Given the approval of PNTR, positive developments in Vietnam-US relations recorded over the past time will be further fostered and enhanced.”
The US and Vietnam opened diplomatic relations in 1995. Then-US President Bill Clinton visited Hanoi and Ho Chi Minh City in 2000, followed the next year by the a Vietnam-US trade pact that has led to a six-fold surge in exports from Vietnam to the US.
In his statement, Vietnam's Dung cited the “direct support of US President George W. Bush” as a factor in helping to push the trade legislation through Congress.
In Washington on Saturday, US President George W. Bush also hailed the development, saying it "marks a significant step forward in the process of normalizing relations with Vietnam and will benefit both our nations."
"This designation will advance our trade and investment relations with Vietnam and ensure that the United States shares in the economic benefits" of Vietnam's entry to the WTO, Bush said.
“Many have worked hard on this effort for many years,” said US-Vietnam Trade Council President Virginia Foote, in an e-mail sent today after the legislation's passage. “This is the final step of US-Vietnam normalization.”
Increased opportunities
The American Chamber of Commerce in Vietnam issued a statement saying the vote was good news for US businesses eager to invest in Vietnam's booming economy, the fastest-growing in Southeast Asia.
"Vietnam's WTO accession will bring AmCham members increased opportunities in both the goods and services sectors," said David Knapp, the group's chairman.
“American investors are attracted to Vietnam's strong gross domestic product growth, rapid industrialization, huge labor force, stable political situation and the prospect of a better business climate under WTO rules,'' Knapp said in a statement Saturday.
"Vietnam's 84 million people will benefit from the better choice, higher quality, and lower prices that will result from increased openness and competition under WTO rules."
The US and Vietnam implemented a bilateral trade agreement five years ago, and trade between the two nations has grown from US$1.2 billion in 2000 to $7.8 billion last year.
California-based Intel Corp this year announced plans to increase its initial 2-stage, 600 million investment to $1 billion for a Ho Chi Minh City-based plant, while Maryland-based Lockheed Martin Corp. was chosen to oversee the construction and launch of Vietnam's first satellite.
Vietnam's WTO accession agreement opens up further opportunities for foreign investors, which could have been closed off to US businesses if Congress hadn't approved the PNTR measure for Vietnam.
Businesses from other WTO nations were already poised to take advantage of Vietnam's WTO accession and would have had a head start on US companies if the trade bill hadn't passed.
When Vietnam's WTO membership takes effect, the country will lower many tariffs and open up previously protected economic sectors, especially in service industries such as banking, financial services and insurance.
The trade bill meant US businesses could now feel “entirely secure” about their business in Vietnam, Deputy Foreign Minister Le Van Bang said.
"The passage of PNTR will create good business conditions for American enterprises," said Hoang Van Dung, vice chairman of the Vietnam Chamber of Commerce and Industry. "They will benefit more from it than Vietnamese enterprises."
Dung said he hoped that US investment in Vietnam would increase after Vietnam's WTO membership takes effect on Dec. 28.
Singapore, Japan, Taiwan and various other economies have invested more in Vietnam than the United States, which ranked ninth out of 74 nations with investments in Vietnam.
Passage of the bill is a final, symbolic step in the reconciliation between the two former foes, Dung said.
"The past is something we can't change," he said. "Now we can look forward to the future."
Source: AP, Bloomberg, Thanh Nien
Story from Thanh Nien News
Published: 10 December, 2006, 10:23:56 (GMT+7)
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