U.S.-Vietnam relations: a new chapter - Secretary of State Warren Christopher, Aug 6, 1995 - Transcript

US Department of State Dispatch, August 14, 1995

As your nation and leaders have recognized, free market reform is a necessary start. All over the world, courageous reformers have understood that command economies cannot bring prosperity to their people. Experience teaches that command economies cannot be dismantled piecemeal. I would ask you to look at economic reform as a passage over a ravine: You cannot do it by taking several little steps; only one giant leap will get you across.

There are many different models of market economies. But whether you go to New York, or Tokyo, or Bangkok, you will find most of the fundamentals are the same. All these places have private property rights, protected by an independent judiciary, and with ownership clearly defined by law. In each, one can borrow capital, buy insurance, and freely exchange information. In each, efficiency, hard work, and imagination are rewarded, not discouraged.

Vietnam has made great progress in creating these conditions, and the result has been stunning economic growth and a range of new opportunities. The policy of Doi Moi has been a tremendous success. But there is still much to be done to create an institutional framework in which a free market can flourish. Vietnamese entrepreneurs and foreign investors alike need a stronger system of private banking, and above all, less red tape and more transparency.

In Vietnam, as everywhere, a free market is the basic precondition for a productive business environment. But I believe sustained economic development is more likely where additional factors are present--where courts provide due process, where newspapers are free to expose corruption, and where businesspeople can make decisions with free access to accurate information. The foundation of market economies--rights that protect contracts, property, and patents--can only be fully guaranteed by the rule of law. Indeed, the reality of Japan, Hong Kong, South Korea, and Thailand tells us that the rule of law and accountable government are the bedrock of stability and prosperity. The reality of Burma and North Korea tells us that repression entrenches poverty.

Our conviction--that freedom is both practical and just--is neither Western nor Eastern. Most would agree with the 16th century Vietnamese poet who said that "the people are the roots of the nation."

Each nation must find its own way consistent with its history and culture. The people of Vietnam, especially its young people, will choose their way. But that is just the point. For when you hear Americans talk about freedom and human rights, this is what we mean: Each of you ought to have the right to help shape your country's destiny, as well as your own.

Today, the United States is embarking on a new relationship with your country, and most important, a new relationship with your people. There are issues on which we no doubt will disagree. But we have, I believe, a common vision of Vietnam taking its rightful place in a community of Southeast Asian nations--a community that is more open, more prosperous, and more secure than ever before. For the first time in many years, we will have a normal relationship in which each of our nations can advance its interests in a climate of cooperation and in an age of peace.