FACT SHEET: BACKGROUND ON U.S.-VIETNAM OPIC BILATERAL
(Agreement will end impediments to OPIC in Vietnam)

Washington -- The U.S.-Vietnam Overseas Private Investment Corporation (OPIC) bilateral agreement is the result of intensive discussions between representatives of OPIC and the Vietnamese government at meetings in Hanoi in November, 1995, and May and August, 1997, and in Washington in October and November, 1997.

The agreement itself, according to an OPIC fact sheet, is a fairly simple document containing standard provisions that:

-- define OPIC's tax and regulatory status in Vietnam;

-- specify what OPIC may do with Vietnamese currency acquired in the course of OPIC's operations in Vietnam;

-- recognize that OPIC may succeed to legal rights of American investors in Vietnam; and

-- provide for any dispute between the two governments relating to the OPIC programs to be settled by arbitration under international law.

Once the OPIC bilateral agreement has been signed by both governments, and the Jackson-Vanik waiver has become effective, there will be no further legal impediment to the operation of OPIC programs in Vietnam.

Following is the text of the fact sheet:

(begin text)

March 18, 1998

Background on U.S.-Vietnam OPIC Bilateral

-- Under the Foreign Assistance Act, OPIC cannot operate in any country unless the United States has an agreement with the government of that country regarding OPIC programs.

-- After President Clinton announced his intention to normalize economic relations with Vietnam in July, 1995, OPIC presented a draft of the bilateral agreement to Vietnamese Ambassador Le Van Bang (who was at the time the Charge at the Vietnamese Embassy) in August, l995.

-- The agreement is the result of intensive discussions between representatives of OPIC and the Vietnamese government at meetings in Hanoi in November, 1995, and May and August, 1997, and in Washington in October and November, 1997.

-- The agreement itself is a fairly simple document containing standard provisions that will, among other things, (i) define OPIC's tax and regulatory status in Vietnam; (ii) specify what OPIC may do with Vietnamese currency acquired in the course of OPIC's operations in Vietnam; (iii) recognize that OPIC may succeed to legal rights of American investors in Vietnam; and (iv) provide for any dispute between the two governments relating to the OPIC programs to be settled by arbitration under international law.

-- The "initialling" of the text of the agreement on November 5, 1998, represented an agreement in principle on the text that the two governments would sign, if all other conditions to the availability of OPIC programs in Vietnam were satisfied.

-- To enable OPIC to operate in Vietnam, the Secretary of State recently waived the provisions of Foreign Assistance Act Section 620(f) that prohibit the operation of OPIC programs in Vietnam.

-- In addition, the President of the United States recently signed a determination necessary for the waiver of Jackson-Vanik restrictions that prevent OPIC from operating in Vietnam. The Jackson-Vanik waiver will take effect when published in the Federal Register which is expected to occur shortly.

-- Once the OPIC bilateral has been signed by both governments, and the Jackson-Vanik waiver has become effective, there will be no further legal impediment to the operation of OPIC programs in Vietnam.

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