U.S. DEPARTMENT OF STATE
Remarks to the American Chamber of Commerce
E. Anthony Wayne
Assistant Secretary for Economic and Business Affairs
Hanoi
Vietnam
July 26, 2001

Good afternoon. Thank you for the invitation to be with you today. I would like to speak to you first about the overall relationship between the U.S. and Vietnam, particularly on the economic dimension, and talk about how that relationship fits into the framework of international trade and economic relations. Then, I'd like to say a few words about how the State Department, and the American Embassy here in Hanoi, is working on behalf of U.S. companies operating here in Vietnam.

The long-term objective of our Vietnam policy is a secure, stable, prosperous, and open Vietnam. We hope to see a Vietnam integrated into regional and global institutions, cooperating and competing within the rules of those institutions. This Vietnam will have a dynamic and open economy, offering its citizens an improving standard of living and opening its markets to imports and attracting investment. Vietnam has the potential to contribute to regional stability and security, and to be an engine for economic growth in this region.

You, the members of this Chamber, are playing an important part in this exciting chapter of history. Vietnam and the United States are working together on many fronts to build a healthy, mutually beneficial relationship: A relationship based on cooperation in areas of shared interest and designed to strengthen the partnership that began only recently, after years of mistrust and antagonism.

The economic relationship between the U.S. and Vietnam is a vital component of that partnership. The United States regards Vietnam as an important trading partner. And with a private sector commitment of more than $120 million (1999 figure), the U.S. ranks as Vietnam's seventh-largest foreign investor. This is an important consideration. As Secretary Powell has often said, money is a coward: It will not go where there is danger and instability. In the international competition for scarce capital and technology, countries that focus on improving the environment for investment, on battling corruption, and raising productivity through better education and health for their citizens will attract private investment and prosper.

As you know, President Bush has declared implementation of the bilateral trade agreement we signed just a year ago to be one of the top priorities on his international trade legislative agenda. Once that agreement has been approved by Congress, Vietnam will be eligible for Normal Trade Relations, or "NTR", status on a year-to-year basis. This will pave the way for significantly greater two-way trade flow between our countries which, according to the latest figures I've seen, stands at about $1.2 billion a year.

We were pleased last week to see some progress as the Senate Finance Committee reported out the resolution approving the BTA and we hope it will soon be submitted for a vote by the full Senate. Meanwhile, we hope the House of Representatives will soon be able to consider the legislation -- and I am pleased to report that the House Ways and Means Committee intends to mark up the resolution approving the BTA on July 24. That's an important step. While more work remains to be done -- and I won't try to predict how or even when Congress will finally decide -- we are optimistic we will eventually have Congressional approval.

After suffering some setbacks in the mid-1990's, Vietnam's economy is once again showing encouraging signs. Trade between the U.S. and Vietnam has been increasing steadily since 1997 and, according to 2000 trade figures, Vietnam exported $827 million in goods to the U.S., while importing $368 million. Two-way trade so far this year is up eleven percent.

Clearly, we'd like to see the value of U.S. exports to Vietnam increase. But the importance of trade goes far beyond the figures on one side of a balance sheet. As President Bush has said, "Open trade fuels the engines of economic growth that create new jobs and new income. It applies the power of markets to the needs of the poor. It spurs the process of economic and legal reform. It helps dismantle protectionist bureaucracies that stifle incentive and invite corruption. And open trade reinforces the habits of liberty that sustain democracy over the long term."

That's it in a nutshell. Yes, increased trade means more jobs and better jobs, greater prosperity and higher standards of living, both for the U.S. and for our trading partners.

But accelerating trade and strengthening democratic institutions go together; open markets and good government are very closely linked. The prosperity and the economic integration that open trade brings gives citizens a greater voice in their own destiny.

That's why, back in Washington, the Administration is working closely with Congress to achieve Trade Promotion Authority, or TPA -- by which Congress agrees in advance to make a simple yes-or-no decision on trade legislation, rather than subjecting it to lengthy debate and amendment. TPA is vital for continued progress in advancing the free trade agenda internationally.

An important part of that international agenda is the launching of a new global trade round, which we hope to do in November at the World Trade Organization ministerial meeting in Doha.

While the U.S.-Vietnam Bilateral Trade Agreement is considered "privileged" legislation which does not require TPA for expedited Congressional consideration, launching a new WTO round is critical for emerging Asian economies -- and that gives Vietnam a direct interest in seeing it happen. Because Vietnam -- once it has acceded to the WTO -- stands to benefit, along with other developing and developed countries alike, from the reduction in trade barriers worldwide that will result from a new round. We should all be encouraged, therefore, by the strong endorsement for a new WTO round given by the leaders of the G-8 countries at their summit meeting Genoa, Italy last weekend.

Let me now turn to an important element of the State Department's work overseas: Support for American companies doing business outside the borders of the U.S.

We encourage governments to take steps to strengthen the rule of law and increase transparency. Our embassies work to see that American companies abroad have level playing fields and do not suffer from rules and practices designed to keep them out of the market. We do not seek special treatment for American companies -- our interest is simply in seeing that U.S. firms are able to compete under the same rules and assumptions as companies from other countries. We know there are some large initiatives under way; for example, The Boeing Company's negotiations to sell aircraft to Vietnam Airlines and the separate efforts of General Electric Aircraft Engines and Pratt & Whitney to supply engines for those aircraft. Of course, we hope that the Vietnamese government considers making a decision to accept an "American package" -- but the important concern is that the decision be made on the basis of merit with all competing companies having an equal chance to make their cases.

Along with this commercial advocacy, of course, we hold U.S. companies overseas to a high standard of corporate practice. Each year the State Department publicly recognizes exceptional performance through our Awards for Corporate Excellence which spotlight good corporate citizenship, innovation, and exemplary business practices overseas. Criteria for nomination include ethical business practices, exemplary employment practices and a healthy workplace environment, concern for the environment, contributions to the local society, and, of course, rejection of bribery and corruption.

During the past couple of years our Embassy here in Hanoi has proudly nominated U.S. companies for their outstanding corporate citizenship, innovation, and exemplary business practices. Cargill Vietnam was nominated for this award, notably for its "Cargill Cares" charitable program, its safety practices, and quality control standards. More recently, Ford Vietnam has been nominated for developing safety and environmental standards, promoting education and e-commerce training for its employees, building a "safety village" in Hanoi to teach safety to children, and supporting the U.S.-Asia Environmental Partnership.
And our Consulate General in Ho Chi Minh City has nominated the solar electric light company Selco-Vietnam for its responsible environmental practices and mission to improve life in the rural communities of Vietnam.

These are just three examples of the good work being done by American firms here; we know there are other examples that deserve recognition.
But the message behind all this is, good corporate citizenship is not a new idea -- enlightened companies have long worked to maintain their good reputations among customers, investors, and workers. It's good business.

In these brief remarks, I have tried to give you some sense of the importance with which we in Washington view our relationship with Vietnam and how the economic relationship is an integral part of that.
I have also attempted to sketch for you the importance of Vietnam, both here in the Southeast Asian neighborhood and in the global picture. And I wanted to acknowledge the fine work that Embassy Hanoi is doing to represent U.S. interests here in Vietnam.

In closing, let me congratulate you on the important work you are doing and wish you all the best for the future. Thank you for your attention.

END