U.S.-Vietnam Relations

Text: President Clinton on New Opportunities for U.S. and Vietnam
(Fact sheet on expanding economic ties, trade and investment)
Following is the text of the White House fact sheet:
(begin text)

THE WHITE HOUSE
Office of the Press Secretary
(Ho Chi Minh City, Vietnam)
For Immediate Release
November 19, 2000
FACT SHEET
PRESIDENT CLINTON: NEW OPPORTUNITIES FOR THE UNITED STATES & VIETNAM
THROUGH EXPANDING ECONOMIC TIES, TRADE, & INVESTMENT

President Clinton today will speak about the potential of trade and investment liberalization and the free flow of information to empower Vietnamese entrepreneurs, open new markets for U.S. investment and exports, and build a closer relationship between the two nations in speeches at the Vietnam International Trade Container Terminal and at the U.S.-Vietnam Business Reception.
THE BILATERAL TRADE AGREEMENT (BTA) SIGNED ON JULY 13, 2000,
EXPANDS THE POTENTIAL FOR U.S. - VIETNAM COMMERCE.
The BTA is a result of the ongoing historic reconciliation between the United States and Vietnam and an essential roadmap for Vietnam's integration into the global economy. By normalizing trade relations and committing Vietnam to sweeping economic reform in the areas of new market access for agricultural and industrial goods, increased intellectual property rights protections, access for services, transparency of laws, rules, and regulations, and safeguards for foreign investments, it will open markets and increase investment. U.S. total (two-way) goods trade with Vietnam totaled $900 million in 1999 - up from $666 million in 1997. Exports to Vietnam have already increased considerably from $4 million in 1992 to $291 million in 1999 reflecting normalization of U.S. - Vietnam relations and should continue to grow as tariff and non-tariff barriers are lowered.
PRESIDENT CLINTON WILL HIGHLIGHT THE POTENTIAL OF A
STRONGER U.S. - VIETNAM ECONOMIC RELATIONSHIP:

Vietnam International Trade Container Terminal (VICT): The VICT is a joint venture between a Vietnamese state-owned company and a multinational company on the Saigon River just south of downtown Ho Chi Minh City. Completed in 1998 at a cost of $53 million, VICT is Vietnam's newest container terminal and the only one with completely computerized operations.
U.S.-Vietnam Business Reception: President Clinton will also address over 300 Vietnamese and U.S. business leaders at the U.S.-Vietnam Business Reception at Ho Chi Minh City Hall on potential of increased trade and investment.

PRESIDENT CLINTON'S VISIT BRINGS STRENGTHENED
U.S.-VIETNAM ECONOMIC TIES:

OPIC $200 Million Line Of Credit For Vietnam: OPIC will provide a $200 million special line of credit to support U.S. investors seeking financing for projects in Vietnam.
High-Level Economic Dialogue Between the United States & Vietnam: The United States and Vietnam have agreed to enter into a high-level dialogue on economic cooperation. The dialogue will be a forum for exchanging views on economic, trade and labor issues, and coordinate efforts to deepen the benefits of US-Vietnam engagement on these issues.
10 New Contracts/Letters Of Intent: During and around President Clinton's visit to Vietnam, there have been several developments in U.S.-Vietnam commerce -- contracts or letters of intent were signed for 10 sales of U.S. goods and services.

DETAILS OF SITES
Vietnam International Trade Container Terminal:
The President's visit will help demonstrate how foreign and domestic investment are combining to modernize and industrialize Vietnam and integrate it into the regional and global economy. VICT is a joint venture between a Vietnamese state-owned company and a multinational company with holdings that include American President Lines, owner of one of the two U.S. flag cargo fleets. Completed in 1998 at a cost of $53 million, VICT is Vietnam's newest container terminal and the only one with completely computerized operations. The facility is providing modern market-access with the basic infrastructure to move goods in and out of a developing country efficiently. American President Lines provides VICT's technical expertise, its senior managers and carries 50 percent of VICT's cargo of 5,000 containers per month. American President Lines is a co-sponsor, along with Ford Motor Company, of the "Helmets for Kids" initiative, part of the Safe Vietnam Program. American President Lines is donating the transportation and logistics support to bring motorcycle helmets by container to the Vietnam.
U.S.-Vietnam Business Reception
President Clinton will also address a gathering of over 300 Vietnamese and U.S. business leaders at a gathering organized by the U.S. Vietnam Trade Council, the U.S. ASEAN Business Council and the American Chamber of Commerce at Ho Chi Minh City Hall. Representatives from U.S. business organizations join Vietnamese businesspeople to participate in discussions on the U.S.-Vietnam Bilateral Trade Agreement, integration of Vietnam into the international economy, and challenges and opportunities for doing business locally. Companies represented at the Forum include: American International Group, Boeing, Caltex, Cargill, Cisco, Citigroup, Coca Cola, Crane International, Daimler-Chrysler, Federal Express, Ford, General Electric, General Motors, Motorola, New York Life, Nike, Procter & Gamble, Oracle, UPS, United Technologies Corporation, and Unocal.
DETAILS OF ANNOUNCEMENTS

OPIC $200 MILLION LINE OF CREDIT FOR VIETNAM: OPIC will provide a $200 million special line of credit for Vietnam to support U.S. investors seeking financing for potential projects in Vietnam. Since reopening in Vietnam, OPIC has committed $15 million in finance support to three projects and has registrations for 29 projects seeking political risk insurance. OPIC also supports four privately managed private equity funds that are eligible to invest up to $640 million in projects in Vietnam.
HIGH-LEVEL ECONOMIC DIALOGUE BETWEEN THE UNITED STATES & VIETNAM: The United States and Vietnam have agreed to enter into a high-level dialogue on economic cooperation. The dialogue will provide a forum for exchange of views on economic, trade, labor, science, and technology issues and coordinate efforts to deepen the benefits of U.S,-Vietnam engagement. This dialogue will help take stock of progress in the U.S. - Vietnam bilateral economic relationship, including the implementation of the Bilateral Trade Agreement.

CONTRACTS/LETTERS OF INTENT SIGNED BETWEEN
THE U.S. AND VIETNAM AROUND VISIT

10 NEW CONTRACTS/LETTERS OF INTENT BETWEEN U.S. BUSINESSES & VIETNAM: Developments in U.S.-Vietnam commerce surrounding President Clinton's visit include contracts or letters of intent for 10 major sales of U.S. goods and services to Vietnam.
Boeing 777 Aircraft: The Government of Vietnam and the Boeing Company have signed a letter of intent to negotiate the procurement of three Boeing 777-200ER widebody commercial aircraft.
Fiber Optic Cable Project: Corning International Corporation intends to purchase Siemens AG's 50 percent interest in Fiber Optic Cable and Accessories Limited, subject to the consent of joint venture owner, Vietnam Post and Telecommunications. Corning will supply optical fiber to the joint venture.
Marine Propulsion Engines and Gear Boxes: V-Trac Holdings, Inc., a Vietnamese subsidiary and exclusive dealer of Caterpillar, Inc. will sign an equipment supply contract with Ha Long Investment and Development Company for the sale of 7 units of Caterpillar's Marine Propulsion Engine, Model 3421B and gear boxes.
Sale of Ellicott Dredges: Ellicott International intends to sign two contracts for dredge and associated support equipment with Vietnam Waterway Construction Company, a state-owned enterprise.
Business to Business (B2B) e-Commerce Platform (MeetVietnam.com): MeetChina.com and the Corporation for Financing and Promoting Technology will sign an MOU for the creation of a joint venture company and website, MeetVietnam.com. The project will provide Vietnamese exporters with a "virtual storefront" to display goods/services and allow online ordering/shopping opportunities for overseas buyers.
Vietnam Business to Business (B2B) Exchange: Oracle Corporation and KHM, Inc., an international consulting firm, will sign an MOU with the Peoples's Committee of Danang City on the creation of a B2B joint venture that will contribute to the development of Vietnam's two-way foreign trade. The U.S. export content include software, computer hardware, networking and telecommunications equipment as well as engineering, business and management expertise.
Beach Resort Investment: American Indochina Resorts, Ltd. intends to sign a joint venture agreement with Danang Tourism and Service Company that will enable them to obtain a license to pursue a beach-front resort development project.
Eco-Tourism Resort: Treehouses of Hawaii, Inc. will sign a joint development agreement with Huong Giang Tourist Company of Thu Thien-Hue for engineering and technical support for the creation of an eco-resort treehouse project designed to bring environmentally friendly tourism to Hue Province.
East-West Transportation Corridor Project: Stanley Consultants, Inc. and the Louis Berger Group, Inc. along with Vietnam's Transport Engineering Design Corporation, a subcontractor to the Ministry of Transport, have been selected to provide detailed design and construction supervision services for the Asian Development Bank financed Vietnam East Transport Corridor in Quang Tri Provence.
TDA Grant for Vietnam Airlines IT Procurement Plan: Grant agreement will provide Vietnam Airlines Corporation $475,000 to fund the development of an Information Technology procurement plan that will include assessing its technology needs, a strategy for implementation and integration, and a financing structure for equipment.

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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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