Secretary's Speech

Secretary of Commerce Carlos M. Gutierrez
Remarks at the Ministry of Foreign Affairs, Vietnam Chamber of Commerce and Industry and U.S.-Vietnam Society Joint Seminar
National Convention Center
Hanoi, Vietnam

Thank you. Good morning everyone.

Let me begin by thanking our hosts: the Ministry of Foreign Affairs, the Vietnam Chamber of Commerce and Industry, and the Vietnam-USA Society.

I’m honored to be here and to be leading the first U.S. Cabinet-level business development mission to Vietnam.

In September in Washington, Ambassador Chien was kind enough to invite me to join in the celebration of Vietnam’s Declaration of Independence and commemorate the anniversary of Ho Chi Minh’s passing.

At Ba Dinh Square, 62 years ago, President Ho Chi Minh, in declaring Vietnam’s independence from colonial France, quoted almost verbatim the immortal words in America’s declaration of independence from Great Britain.

The opening paragraph of his speech was: “All men are created equal. They are endowed by their Creator with certain inalienable rights. Among these are life, liberty and the pursuit of happiness.”

There has been much pain and sadness in this land since then. We would like to be part of helping make those words—which mean so much to Americans—become truer still for Vietnam.

While Vietnam is traveling this forward path, others in the region are not. We have only to look at the ongoing repression in Burma which has shocked the international community.

We commend Vietnam for staying on its current path.

Since the United States re-established diplomatic relations with the Vietnamese government in 1995, we have seen our relationship mature.

And let me say here, we very much appreciate Vietnam’s help in putting to rest the suffering of American families seeking to learn the fate of their loved ones.

In recent years, we have also seen tremendous progress in our economic and commercial engagement.

Since 2001, when the U.S.-Vietnam Bilateral Trade Agreement went into effect, our two-way trade has jumped more than six-fold, from $1.5 billion to $9.7 billion per annum. And U.S. exports to Vietnam grew 140 percent, from $460 million to $1.1 billion.*

The United States is Vietnam’s top export market, and an important source of investment. And Vietnam is one of America’s fastest growing markets in Asia.

During the first eight months of this year, U.S. exports to Vietnam grew 67 percent. It’s estimated that our two-way trade will surpass $12 billion this year.

Additionally, the BTA gave impetus to domestic reforms such as the Enterprise Law, which liberalized the domestic private sector. It unleashed hundreds of thousands of private businesses. And it created millions of jobs, effectively helping the domestic non-state sector eclipse the state sector.

In the meeting that Presidents Bush and Triet had in Washington in June, they discussed ways to move these economic ties to the next level.

Twenty-two American companies have joined me on this business development mission. They represent a diverse cross-section of U.S. industries, including automotive, infrastructure, and tourism. And they have come seeking commercial opportunities in this dynamic and growing market.

Vietnam is Asia’s newest “economic tiger.”

• It has a large, young, literate, enthusiastic, and growing population of more than 85 million people. Nearly half are under 25 years old.
• GDP today is $61 billion. It has grown by an average rate of 7 percent per year for the past decade.
• Registered foreign direct investment in Vietnam last year totaled almost $10 billion.

Importantly, Vietnam joined the World Trade Organization this year, becoming a beneficiary of the international trading system.

Last year it was granted Permanent Normal Trade Relations status by the United States.

And, in June, the U.S. and Vietnam signed a Trade and Investment Framework Agreement.

The economic bonds between our countries are growing broader and deeper.

This partnership has resulted in great economic success for both. It is a solid foundation and the “engine of growth” for our relationship. And it holds still greater potential.

We believe we could do even more business together.

American companies offer innovative goods and services, technology and best business and labor practices.

They look for a pro-growth economic environment.

They look for the rule of law to prevail in an impartial and timely fashion.

They look for openness and transparency in the regulatory system.

They look for a level playing field so foreign companies are not put at a disadvantage by barriers such as technical standards.

They look for protection of their intellectual property rights.

At the end of the day, they look for good governance, which is transparent and accountable.

We welcome and applaud the great economic progress Vietnam is making.

The business environment is transforming at breakneck speed. U.S. firms are eager to be partners in this growth.

Several U.S. companies are waiting to conclude negotiations on commercial projects here.

We would like to see access in Vietnam for our companies in important areas such as trading and distribution rights.

When Vietnam joined the WTO, tariffs were reduced on over 94 percent of industrial and consumer goods. We would like to see full implementation of all the commitments Vietnam made in joining the WTO.

We believe open and fair trade is one of the most efficient tools for generating prosperity and social justice.

It generates growth. It creates jobs. It promotes peace and stability. It’s a win-win proposition for both trading partners.

Consider: Vietnam’s improved economic climate which has attracted major investment by international companies is also producing social benefits.

According to the World Bank’s most recent figures, poverty has fallen by two-thirds (2004), and the mortality rate for children under five has been cut in half. (2004)

As well as promoting economic growth, American companies are good neighbors in many ways:

Ford Motor Company, for example, has contributed vehicles to the Vietnam Veteran Federation to help serve disabled people in remote areas.

The Cargill Cares program has raised over $250,000 dollars for disadvantaged students, natural-disaster relief, and to build roads and schools in remote areas in Vietnam.

ConocoPhillips has supported Operations Smile Vietnam, which has helped more than 1,700 young Vietnamese born with cleft palates.

There are many opportunities in Vietnam, and many American companies are still at the discovery stage.

The United States, through the Agency for International Development and its Support for Trade Acceleration Program, is working closely with the Vietnamese government to tackle challenges to business and investment.

The goal is to help put into place effective laws that will increase transparency at all levels and promote the inalienable rights of citizens – among these life, liberty and the pursuit of happiness – that are the foundation of strong and prosperous societies.

Thank you again for your hospitality and for your friendship.

We look forward to working with you to grow our commercial partnerships and strengthen the ties between our countries. Thank you.

*Updated from previously posted version.