Text: Commerce's Mallett Says Vietnam Needs to Liberalize Markets
(Market liberalization would be to Vietnam's benefit)To gain the full benefits of the Bilateral Trade Agreement (BTA) Vietnam signed with the United States in July, Vietnam must implement the agreement's market liberalization provisions, according to Deputy Secretary of Commerce Robert Mallett.
In an August 23 speech in Hanoi, Mallett said passage of the BTA by both Vietnam's National Assembly and the United States Congress would allow Vietnam "access to our markets with low tariffs like our other favored trading partners."
Vietnamese businesses, Mallett said, need access to the "7 trillion [7,000,000 million] dollar market in the United States."
Reforming its economy and passing the BTA are steps on the way to Hanoi's membership in the World Trade Organization, Mallett suggested, and could make Vietnam "an economic powerhouse" in Southeast Asia.
Following is the text of Mallett's remarks, as prepared for delivery:
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Remarks by Deputy Secretary of Commerce Robert L. Mallett
Vietnam Chamber of Commerce and Industry
August 23, 2000
Hanoi, Vietnam[As Prepared For Delivery]
It has been a long-term, but definite and clear-cut goal of the President and Vice President to create a partnership between Vietnam and the United States. A partnership that can achieve the goals of this -- the 13th largest country in the world.
In my preparation for this trip, I have talked with a great many distinguished people about Vietnam. And nearly all of them say the following: And I quote: "A rich people, a strong country, and a civilized society."
That's why President Clinton began the normalization process by lifting the Embargo in 1994. It's why he established normal diplomatic relations with the opening of the U.S. Embassy in Hanoi in 1995, and appointed Ambassador Peterson to represent the United States in Vietnam two years later. It's why we now have a negotiated bilateral trade agreement with Vietnam. It is why I am here today.
I wish to do my part to heal the wounds between our countries and move them forward -- together -- into a new prosperity that will impact significantly on both American and Vietnamese economies.
What better way to overcome the past than to help the 77 million people of Vietnam become prosperous?
And in fact, the steps we've taken together have had enormous impact. From virtually zero before the embargo was lifted, Vietnamese exports to the United States grew steadily to over $600 million in 1999. Some people predict Vietnamese exports to the United States may increase by as much as $800 million more a year.
Deputy Prime Minister Cam says that Vietnam now has more than 200 industrial products, which can compete, on the international market.
Meanwhile, our bilateral trade is still tiny fraction of Vietnam's $11.5 billion in exports and $11.6 billion in imports last year. U.S. investment, while in the top ten, is still less than 5 percent of total foreign direct investment in Vietnam. Clearly -- the potential for growth is tremendous.
And so, six weeks ago, it was with joy and relief that I watched the signing of the historic trade agreement between our two countries. At the ceremony, President Clinton called the agreement "another historic step in the process of normalization, reconciliation and healing between our two nations."
He said it would "dramatically open Vietnam's economy, further integrate it into the international community and increase trade between our two nations."
And we believe this is all true.
It's been 14 years since Doi Moi, the great decision that began that the economic transformation of Vietnam in 1986 and turned it from a country needing to import food -- to the second largest rice exporter in the world.
Vietnam's decision to sign this comprehensive bilateral trade agreement shows similar courage -- and can bring even more positive results.
After all, Vietnam will not prosper on rice exports alone.
Vietnamese businesses need access to the world's market, particularly the 7 trillion dollar market in the United States. Vietnam has taken some important steps, already. Joining the Association of Southeast Asian Nations -- or ASEAN -- in 1995, and the Asia-Pacific Economic Cooperation Forum -- or APEC -- two years ago.
It's a process that can transform Vietnam into a full member of the World Trade Organization. It can make Vietnam an economic powerhouse of Southeast Asia. But, of course, there are always the "nay sayers." There are always those who see obstacles rather than the opportunities. They say the provisions of the BTA are hard to implement.
Guess what? They are.
Doi Moi wasn't easy either.
Almost 40 years ago, when the United States announced its intention to send astronauts to the moon, President Kennedy said quote -- "We do not do this because it is easy. We do it because it is hard."
He meant that sometimes the hard things are the ones most worth doing.
I don't doubt the provisions are hard. Neither do I doubt Vietnam's ability to implement them.
Can we help you make this difficult transition? We can, and we are.
The United States is providing technical assistance for legal reforms to build the legal infrastructure needed to implement the BTA. My Department has a wide range of programs working in Vietnam aside from the Commercial Services Offices in Hanoi and Ho Chi Minh City. Intellectual property rights training offered by the Patent and Trademark (PTO); insurance regulation assistance and standards and conformity assessment; The U.S. Asia Environmental Project; cooperative efforts in natural resources preservation; and weather advice.
The fruits of the BTA cannot be enjoyed fully unless Vietnam implements the provisions of market liberalization.
When our Congress, and your National Assembly, approve BTA, and what a day of rejoicing that will be, Vietnam will gain access to our markets with low tariffs like our other favored trading partners.
That's a great opportunity.
But it's not enough. There are countries with normal trade relations whose exports to the United States are still lower than Vietnam's.
In order to fully realize the benefits of the BTA, Vietnam must implement the other market measures to ensure its competitiveness.
Here again, there are "nay sayers."
There are those who say that Vietnam is being asked to do too much in too many areas.
I disagree.
Just look at what's happening in Information Technology, an area that has transformed the American economy in the last decade.
Now, at a time when Internet traffic doubles every 100 days, it is revolutionizing nearly every region on this planet. But how can you develop a strong IT sector in Vietnam without the speedy implementation of the BTA?
As just one example: the provisions of Chapter I of the BTA facilitate the flows of industrial goods. These are the tools to develop infrastructure for Information Technology. We are world-class producers of these tools, which Vietnam needs. To delay computers or digital communications equipment in Customs or to restrict their entry can only delay the development of this important sector.
Of course, some benefits of IT are already here.
Anyone of you with the proper equipment and internet access can get on line to read about the benefits of the BTA on Ambassador Peterson's American Embassy website. Here you have access to the entire text of the BTA. In Washington, I can follow developments in Vietnam not only through the international press, but also on the Nhan Dan and Lao Dong websites.
But for the sector to succeed, changes must take place throughout the entire system of trade.
It is the view of many American companies that Vietnam will see the urgency of these issues. In fact, yesterday, I met with the members of the American Chamber of Commerce. I was struck with the optimism of these true pioneers in normalizing U.S.-Vietnam economic relations. Leading American companies like CISCO and IBM are already investing in the education of future IT workers in this country. They have confidence in the future of Vietnam. Domestic doubters would do well to emulate them.
The U.S. Congress voted 322 to 91 votes last month to support President Clinton's authority to extend the Jackson-Vanik waiver for Vietnam, as it has done for the last three consecutive years. This waiver allows our government to continue extending financing support and guarantees to U.S. companies trading and investing in Vietnam. That's another strong sign of confidence in the Administration's policy of economic normalization.
By providing a framework for consistency, predictability, transparency, and accessibility, the BTA provides our companies with a renewed sense of excitement and enthusiasm for the Vietnamese marketplace. They look to you, as business partners, for mutually beneficial cooperation.
As you say in this country -- hopefully I don't mangle my pronunciation guide too badly --: PHI THUONG BOT PHU (TRANSLATION: Without doing business you can't get rich.)
President Roosevelt, who led our Nation through the darkest days of the Second World War, once said, "The only thing we have to fear is Fear itself."
Now the World is mostly at peace. You have moved courageously towards economic reform. Don't be afraid to do more. Your decision to integrate the Vietnamese economy with the rest of the world will allow Vietnam to grow and prosper. If we are not held back by fear, our two nations can put the past behind us. There is nothing about our future that we should fear.
Bear with me now--I am going to try my Vietnamese skills once again: XIN CAM ON QUI VI!
Thank you very much!
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(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
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