Vietnam – US’ fastest-developing market in SEA

VietNamNet Bridge – Vietnam is not the largest trade and investment partner of the US in Southeast Asia but it is the fastest-developing market of the US in this region.



On the sideline of the Conference of US Commercial Offices in Southeast Asia 2007, held in Da Nang city from September 19-22, VietNamNet had an interview with US Consul General in HCM City Kenneth Fairfax and Dan Harris, US Deputy Assistant Commerce Secretary, about trade and investment cooperation between Vietnam and the US in the World Trade Organisation (WTO) era in Vietnam.

What do you think about the operations of the US Commercial Office in Vietnam?



Kenneth Fairfax: Vietnam is a fast-growing economy, which is integrating into the world economy and is developing internally. The US Commercial Offices in Hanoi and HCM City have exerted efforts to introduce American products, services and technology into Vietnam and they have been successful in this task. Since the Vietnam-US Bilateral Trade Agreement took effect in 2001, the quantity of US goods exported to Vietnam has increased by more than two times.



Apart from promoting trade, our commercial officers in Vietnam also positively contribute to developing the bilateral ties between the two countries, through participating in projects like STAR to help Vietnam prepare more carefully for integration.



The signing of the BTA and the implementation of STAR have not only created the boom in two-way trade but also helped prepare the foundation for Vietnam’s accession to the WTO.



We are pursuing those operations by programmes aimed at significant issues like intellectual property, the quality of business management, etc. Of course, our commercial officers are not alone. They are part of the achievement which is contributed by thousands of Vietnamese and American people, who have joined hands to improve the Vietnam-US relationship and help Vietnam reach the goal of building a market-oriented economy, successfully competing in the global market and improving people’s lives.



What is the position of Vietnam in ASEAN as a trade and investment partner of the US?



Dan Harris: We don’t have available data now to make an accurate comparison but I can say that Vietnam is not the largest trade and investment partner of the US in Southeast Asia but Vietnam is the market with the fastest development speed in this region.



We have worked in many countries, including developing ones so perhaps we can’t immediately remember numbers but we can immediately realise good things. I think everybody recognises that Vietnam in general and Da Nang in particular have many opportunities for business. This is the place where we want to come and want to see many US companies invest here.



Kenneth Fairfax: As I have said, US-Vietnam trade relations have been expanding very quickly in the past decade. Two-way trade revenue rose from $1.2 billion in 2001 to $10 billion in 2006. This boom in trade is thanks to Vietnam’s strong economic growth and the US companies’ provision of equipment, materials, technology and management skills to developing industrial establishments of Vietnam.



Today, Vietnam is among the fastest-developing Asian markets for US goods and the US is the sixth-largest provider of goods to Vietnam and the only Western country among the group of the largest providers of goods to Vietnam that includes China, Taiwan, Korea and Japan.



What have US businesses been paying attention to in Vietnam’s economic reform process since it joined the WTO?

Dan Harris: The US government and the community of American businesses observed that the process for WTO accession of Vietnam was very rapid.



After joining the WTO, Vietnam has to perform some commitments from now to 2012, such as liberalising many areas, allowing foreign businesses to have their own warehouses and distribution channels.



The community of American businesses is carefully observing how the Vietnamese government realises those commitments. They are ready to compete healthily in the Vietnamese market. We believe that Vietnam will pursue administrative and economic reforms to further facilitate the operations of foreign investors.



Kenneth Fairfax: Some American companies worried that once Vietnam entered the WTO it would not pursue reforms. It is clear that this worry was unfounded. Because during the country’s process of becoming a WTO member, reforms made the Vietnamese economy even stronger. That renovation process is good for Vietnam not only because Vietnam has commitments that it has to perform.



When Vietnam carries out economic reform, joins the WTO, the role of the private economic sector is expanding and this will continue in the future. When Vietnam performs ambitious reforms in the fields of financial market, business management and law, I guess that the Vietnamese economy will grow more strongly, creating many more opportunities for people and its trade partners to enjoy benefits from economic development.



As the new Consul General of the US in HCM City, what do you say about the development of Vietnam-US relations in general?



Kenneth Fairfax: Each day there are many more US companies entering the Vietnamese market to play positive roles in the future of this country. American people not only bring goods and capital but also their hearts to Vietnam.



On behalf of all Americans who represent the US government here today, I would like to thank Vietnamese and American businessmen for what they have done to build a brighter future for all of us. Thanks to all Vietnamese government officers for what they have done in Da Nang and other places in Vietnam to promote the growth of the private economic sectors and encourage others to become future partners of Vietnam.

The conference gathers over 60 commercial and economic officers of the US who are working in 11 countries and territories: Vietnam, Thailand, Malaysia, Indonesia, Laos, Cambodia, the Philippines, China, Hong Kong, and Taiwan and representatives from the US.



The conference aims to find measures to promote the relations between the US and ASEAN through trade and investment.


Interviewer: Hai Chau