U.S.-Vietnam economic relations - Joan E. Spero, Under Sec. for Economics, Business, and Agricultural Affairs - Transcript

US Department of State Dispatch, Oct 23, 1995

It is important from the outset to understand that an agreement will not come quickly or easily. The U.S. and Vietnam have a lot to learn about each other's trade regimes and economic systems. We have begun the education process this week and will continue in November in Hanoi. The negotiations that follow will surely be tough, but the overriding importance of normalizing trade relations dictates that we get started now. This week, both sides expressed a willingness and desire to get down to work.

The second element of our economic strategy with Vietnam is promotion of U.S. exports. From the outset of the Clinton Administration, expanding U.S. exports has been a key part of our international economic strategy. Vietnam's domestic market of 72 million consumers as well as its huge infrastructure development plans translate into exciting opportunities for U.S. business.

We Wave already taken a number of steps to promote U.S. exports in Vietnam In August, the Department of Commerce designated Vietnam as part of its ASEAN "big emerging market," and in September opened a commercial section in our embassy in Hanoi.

Just last week, Agriculture Deputy Secretary Rominger made a successful visit to Vietnam to promote the sale of U.S. agricultural products and technology and to explore the prospects for scientific and technical exchanges. We believe each of these visits, in addition to other visits still in the planning stage, will help build commercial links between the U.S. and Vietnam.

The third element in our economic strategy is the steady expansion of programs to support U.S. business interested in Vietnam. U.S. financing and insurance programs such as OPIC, Exim Bank, TDA, and CCC play key roles in helping U.S. firms compete with their foreign rivals and in expanding U.S. business opportunities and exports. In his statement announcing the normalization of diplomatic relations, President Clinton specified that the U.S. would implement the appropriate United States Government programs to develop trade with Vietnam consistent with U.S. law."

Since Secretary Christopher returned from Vietnam, we have conducted an exhaustive review of all U.S. economic programs and the more than two dozen legal and policy issues that govern their operation. Some of these issues are difficult, such as Vietnam's emigration record under Jackson-Vanik, worker rights, which applies to OPIC, and Vietnam's bilateral Paris Club arrears. It is clear from our review that we should be able to implement some programs soon but that others may require bilateral consultations, progress by Vietnam on specific issues, and perhaps policy changes.

We will, of course, put a priority on those programs which most directly benefit U.S. business. We have begun the dialogue to explain the legal and policy provisions governing the various U.S. program to Foreign Minister Cam and Trade Minister Triet this week, and we will shortly begin consultations with Congress on how we intend to proceed. Our goal is to move steadily ahead with programs to support U.S. business, consistent with the President's guidance.