Mission Description

The Office of Aerospace, in the Department of Commerce’s International Trade Administration, will lead an aerospace mission to Vietnam (Hanoi and Ho Chi Minh City) on August 25-31, 2002. The mission will include representatives from a variety of U.S. aerospace firms interested in gaining a foothold in the fast-growing Vietnamese aerospace market. The program’s goals are to gain first-hand market information and to provide access to key government officials and potential business partners for U.S. aerospace firms desiring to expand their presence in Vietnam.

Commercial Setting

Vietnam offers substantial market opportunities for aerospace companies, and is one of the more attractive markets in Asia. The Office of Aerospace discussed the viability of the Vietnam market and obtained strong support from the U.S. Department of Commerce’s Commercial Service office in Vietnam for organizing an aerospace industry focused Trade mission to Vietnam. The Office of Aerospace has surveyed U.S. companies as to their interest in the Vietnamese market. Survey results indicated that Vietnam is an important potential market for these aerospace companies. A number of the companies interviewed believe that Vietnam is indeed opening up to foreign trade and investment, and that they could benefit from a U.S. Government trade mission to the country.

The aerospace sector has been designated Apriority status@ by the Government of Vietnam. Development of Vietnam’s aviation infrastructure is a prerequisite to rapid national economic growth. In 2001, the United States exported over $7 million dollars of aerospace products to Vietnam (a substantial increase from 2000, in which the United States exported roughly $3.5 million dollars).

In accordance with Vietnam’s civil aviation long-term development strategy, airport development is a major focus. Examples of lucrative export prospects for U.S. companies in the country include: air navigation systems, avionics, air terminal communications systems, terminal/airlines security systems, aircraft and aircraft parts, global positioning systems (GPS), helicopters and parts, and air traffic control (ATC) systems.

In December 2001, Vietnam Airlines signed a contract with a major U.S. aerospace company for four long-range, wide body aircraft estimated at $644 million, with $310 million in U.S. content (excluding engines). This transaction was important to the U.S. Government as a way to illustrate the benefits of a bilateral trade agreement to both countries. In addition, it served as a positive signal to other U.S. firms seeking trade and investment opportunities in Vietnam.

Mission Goals

The mission’s primary goal is to gain first-hand market information and provide access to key government officials and potential business partners. In addition, the mission will aim to increase business opportunities for U.S. companies in the aerospace industry (e.g., airport-related equipment, ground support equipment, general aviation, aircraft parts). The event will include representatives from a variety of U.S. aerospace firms interested in gaining a better understanding of the fast-growing Vietnamese aerospace market, including the country’s airport development and modernization plans.

Mission Scenario

The delegation will hold meetings with senior Vietnamese government officials, and officials from various in-country aerospace-related companies and organizations. Participating U.S. firms will be introduced to qualified in-country business partners through mission events and a series of one-on-one meetings in Hanoi and Ho Chi Minh City. The precise schedule will depend on the availability of local government and business officials and the specific goals of the mission participants.

Mission Timetable

The mission is scheduled to arrive in Hanoi on Sunday, August 25, 2002. Official events will take place in Hanoi for two days, August 26-27, 2002. On Wednesday, August 28, 2002, trade mission members will depart for Ho Chi Minh City. Official events will take place for one and a half days, August 29-30, 2002. The U.S. delegation will depart for the United States on Saturday, August 31, 2002. Recruitment for the mission will begin immediately and will conclude no later than July 15, 2002. Applications received after the deadline will be considered only if space and scheduling constraints permit.

Criteria for Participation and Selection Process

• Relevance of a company’s business line to program goals.

• Timeliness of signed application and participation agreement by company, including payment of the estimated $3,900 participation fee. The fee does not include transportation to/from Vietnam or lodging within the country.

• Minimum of 12 and maximum of 25 participating companies in the mission.

• Potential for business in Vietnam.

• Provision of adequate information on company’s products and/or services, and company’s primary market objectives, in order to facilitate appropriate matching with potential business partners.

A company’s products or services must be either produced in the United States or, if not, marketed under the name of a U.S. firm and have at least 51 percent U.S. content of the finished product/service.

Any partisan political activities (including political contributions) of an applicant are entirely irrelevant to the selection process.

Contact:

Mara Yachnin or Anthony Largay
Market Development Division
Office of Aerospace
Trade Development
U.S. Commerce Department
Telephone - 202/482-6236
Fax - 202/482-3113

E-mail - anthony_largay@ita.doc.gov
or mara_yachnin@ita.doc.gov