See more highlights on Vietnam from the U.S. Embassy in Hanoi and the U.S. Consulate General in Ho Chi Minh City.

US Secretary of Commerce believes in stronger US-Vietnam economic ties

VietNamNet Bridge - US Secretary of Commerce Carlos M. Gutierrez has expressed belief that the relationship between the US and Vietnam will continue to grow and get even stronger, especially in the economic front.

“We can help grow both economies and we can contribute to the tremendous changes and the improvements that are happening in the economy of Vietnam,” Gutierrez told a Vietnam News Agency correspondent on November 2 before leading a delegation of more than 20 US companies to Vietnam.

“This is a relationship between two sovereign, independent countries that see a mutual benefit in having a partnership and doing more commerce together and improving the life of citizens in both countries,” the US Secretary of Commerce added.

Secretary of Commerce Gutierrez said the purpose of his visit to Vietnam from November 4-8 is to develop the relationship between companies from both countries, adding that “this is a perfect time because it is the important transition that Vietnam is undertaking in its economy”.

“Vietnam is a very fast growing economy. And we believe that more investment these companies will be exploring can help this economy continue to grow,” the US Secretary of Commerce noted.

(Source: VNA)

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.

Interviewer: Hai Chau - vietnamnet.vn

US trade experts discuss ASEAN investment in central Vietnam

US trade counselors chalked out their investment plans for the ASEAN region during the first half of a four-day conference in Danang this week.

The conference, which opened yesterday and closes Saturday, hosted the US’s top ASEAN experts, officials from the US Department of Commerce, State Department representatives, US trade agency delegates and envoys from the US Embassy and General Consulate in Vietnam.

The US bodies also plan to discuss their trade objectives in the ASEAN bloc and in each member country.

Trade attaché at the US Embassy in Vietnam William Marshak said that Vietnam was chosen to host the conference due to its fast-paced economic development.

But he also pointed out that Vietnam’s slow infrastructure development and transport systems could scare away US businesses.

Also in Danang Wednesday, the Vietnam Chamber of Commerce and Industry and its US counterpart held a conference in which representatives discussed intellectual property rights, brand name management, brand development and franchising.

From Thanhniennews.com on Sept.20, 2007. Reported by Dieu Hien – Translated by An Dien

Ex-Im Bank Chairman and President Lambright Visits Vietnam

Hanoi, Vietnam- U.S. Export-Import (Ex-Im) Bank Chairman and President James Lambright and Senior Vice President for Export Finance, John McAdams, visited Vietnam from August 21-25, 2007 to build interest in Ex-Im’s trade finance services and to explore opportunities for financing U.S. exports in such sectors as aviation, infrastructure, energy and shipping.

Lambright and McAdams held more than 15 bilateral meetings with Vietnamese government ministries, Vietnamese and American firms and various trade associations, including Prime Minister Nguyen Tan Dung, State Bank of Vietnam Governor Nguyen Van Giau and Vice Minister of Industry and Trade Bui Xuan Khu.

Ex-Im Bank, the official export-credit agency of the United States, is in its 73rd year of assisting in the financing of U.S. exports, primarily to emerging markets throughout the world, by providing loan guarantees, export-credit insurance and direct loans. In fiscal year 2006, Ex-Im Bank authorized more than $12.1 billion, including nearly $3.2 billion for small-business authorizations, to support an estimated $16.1 billion of U.S. exports. In 2006, Ex-Im Bank guaranteed the financing of four Boeing 787-8 aircraft and engines for Vietnam Airlines, which are scheduled to be delivered in 2009- 2010. For more information on Ex-Im, visit www.exim.gov.

U. S. and Vietnam sign Trade and Investment Framework Agreement (TIFA), 21 Jun 07

WASHINGTON, DC – The United States and Vietnam today signed a Trade and Investment Framework Agreement (TIFA) that will create a platform on which to further expand and deepen bilateral trade and investment ties between the two countries.

“The TIFA signing marks another important step forward for both countries in the steady expansion of our economic relations,” said Ambassador Karan Bhatia, who signed the TIFA on behalf of the United States. “I am pleased with the ambitious work program we’ve agreed to undertake under the TIFA, which will support Vietnam’s domestic economic reform agenda, create new opportunities for U.S. and Vietnamese businesses, and allow us to consider additional steps we may want to take to further strengthen our relationship.”

Signing on behalf of Vietnam was that country’s Vice Minister of Trade Nguyen Cam Tu.

Under the TIFA, the United States and Vietnam will discuss implementation of the 2001 U.S.-Vietnam Bilateral Trade Agreement (BTA) and Vietnam’s WTO commitments. The two sides also will explore new initiatives to increase trade in industrial and agricultural products and services, and to encourage further investment between the two countries.

Earlier this week, U.S. and Vietnamese officials held their annual review of Vietnam’s progress in implementing the BTA. They discussed a broad range of issues including importation rights for U.S. firms, licensing procedures for U.S. investors and service providers, intellectual property rights, customs, and agriculture issues.

“We applaud the substantial progress Vietnam has made to implement its bilateral and WTO commitments and to reform and open its economy,” said Ambassador Bhatia. “While there is additional work to be done, we look forward to continuing to support Vietnam’s efforts, which have generated impressive economic gains and boosted immensely Vietnam’s regional and global competitiveness.”

Background

Two-way goods trade between Vietnam and the United States totaled $9.7 billion in 2006, an increase of 23 percent over the previous year. The United States exported $1.1 billion worth of goods to Vietnam last year. Vietnam became the WTO’s 150th Member on January 11, 2007. With a market of over 82 million people, Vietnam is the 14th most populous nation in the world and has experienced economic growth of more than 7 percent per year for each of the last five years.

The TIFA negotiations between the United States and Vietnam were launched in March 2007, during the visit to Washington of Vietnam’s Deputy Prime Minister and Foreign Minister Pham Gia Khiem. The TIFA was negotiated under the Enterprise for ASEAN Initiative (EAI). President Bush launched the EAI to further strengthen ties with countries in the commercially and strategically significant Southeast Asian region, and the United States now has TIFAs with Brunei, Cambodia, Indonesia, Malaysia, Philippines, and Thailand, and an FTA with Singapore.

According to Amchamvietnam.com

Microsoft signs software deal with Vietnam government

Mon May 21, 2:06 AM ET

HANOI (AFP) - US software giant Microsoft on Monday signed an agreement with communist Vietnam to use its licensed programmes in government desktop computers in a bid to reduce rampant software piracy.  

Microsoft CEO Steve Ballmer met Prime Minister Nguyen Tan Dung on a one-day visit during which both witnessed the signing of the agreement with the post and telematics ministry to use genuine Microsoft software.

Under the deal, Microsoft Office Systems software will be loaded onto 300,000 central and rural government desktops and computers in educational institutions, said a spokesman for Microsoft.

The deal aims to make Vietnam's government compliant with intellectual property (IP) protection rules and to foster a vibrant information and communication technology (ICT) industry, both sides said in a statement.

"With 60 percent of our 84 million citizens under thirty, 96 percent literacy rate and an economy that is already the second-fastest growing in Asia, Vietnam is well positioned to join the countries who have experienced the miracle of ICT," said the post and telematics deputy minister, Vu Duc Dam.

A recent survey by research firm the International Data Corporation found that Vietnam remains among the world's most software piracy-prone nations.

Business Software Alliance Asia vice president Jeffrey Hardee said the new initiative showed Vietnam was getting serious about reducing piracy and might trigger a multiplier-effect across local industry.

"We anticipate that the Vietnam government licensing agreement of desktops could reduce the overall piracy rate in Vietnam significantly next year, resulting in perhaps one of the biggest single-year drops we'll see in the region as the Vietnam government broadens its IP awareness and enforcement efforts," he said in a statement.

Microsoft Southeast Asia president Chris Atkinson said the company and the ministry would set the foundation for Vietnam's ICT industry to "make quantum leaps forward over the next three years."

"As Vietnam becomes a greater part of the global economy in the next three years, we have no doubt that the investments we are making today will spring forth as great software, created by Vietnamese entrepreneurs who export their innovations across the region and the world," he said.

Molisa set to lift cap on expat employees

Foreign investor pressure could lift the 3 per cent cap on expatriates employed at an enterprise in Vietnam.Le Bach Hong, Deputy Minister of Labour, War Invalids and Social Affairs (Molisa), said the ministry was seeking ways to change Decree 93/2005/ND-CP, which governs the recruitment of foreign nationals in Vietnam, to fit the country’s new WTO membership status. However, technical barriers will be issued to control the employment of foreign nationals and encourage employers to hire local labour.

Read more … .

State reveals strategic infrastructure wishlist

Vietnam has unveiled a wishlist of 17 strategic infrastructure projects that it wants to complete by 2020, by drawing on ODA and FDI.

The combined cost of implementing all of these projects is estimated at $68 billion. The wishlist includes key roading projects such as the north-south expressway, the Ho Chi Minh Highway as well as roads linking Ho Chi Minh City-Trung Luong, Trung Luong-My Thuan-Can Tho, Hanoi-Lao Cai, Hanoi-Haiphong, Hanoi-Lang Son, Ha Long-Mong Cai and Dau Giay-Dalat.

About $44 billion in ODA packages will be needed to develop rail projects such as the north-south express railway, Haiphong-Hanoi-Lao Cai, Hanoi-Lang Son and Dak Nong-Thi Vai-Phu My routes.

The Dak Nong-Thi Vai-Phu My rail route will serve bauxite mining projects in the Central Highlands provinces of Dak Nong and Lam Dong.

The two important ports on the wishlist are Lach Huyen in the north and Van Phong in the south, and the state-run Vinalines has been appointed as the major investor in both projects. Japan’s Sumitomo is also interested in cooperating with the Van Phong project through the build-operate-transfer model.

For the first time in Vietnam, FDI will be used to develop the Long Thanh airport in Dong Nai province and the Duong To-Phu Quoc airport in Kien Giang. The second terminal at Noi Bai and the Danang airport are also on the wishlist.

Long Thanh airport will be developed into Vietnam’s biggest international airport at an estimated cost of $2 billion. It will be able to handle the Airbus A380 airliner, and will receive 100 million passengers and five million tonnes of cargo each year.

The Duong To-Phu Quoc airport will be built at a cost of $156 million between 2008 and 2012. It will be able to receive two million passengers each year.

The second terminal at Noi Bai will cost $388 million to build with Japanese ODA, and the Danang airport will draw on $74 million from the state budget and private investors. Both are expected to be finished before 2020.

The wishlist was issued in accordance with prime ministerial decision 412/QD-TTg.

Dong Nai’s FDI expected to exceed US$10 billion mark by year-end

VNECONOMY updated: 10/05/2007

The southern province of Dong Nai expects to see total foreign direct investment (FDI) poured into the region exceeding US$10 billion by the end of this year.

The benchmark will be reached on the back of a series of hundred million USD plus projects that are currently awaiting approval.

In the first four months of 2007 alone, the province licensed 13 new investments worth close to US$77 million and allowed an additional 25 projects that are currently operational to pump an extra US$167 million into their businesses.

To date, Dong Nai is currently home to 988 FDI business ventures with a total combined registered capital of over US$9.9 billion.

Market analysts have said that Dong Nai's improved investment environment and highly successful investment promotional activities abroad have acted as a springboard for the province to consistently remain a top 5 investment destination for overseas entrepreneurs.

As the first province to implement new government sanctioned administrative reforms, Dong Nai has reduced import-export and investment licensing times to between 3-5 days from the 15 days it took previously.

Min Young-Wo, Consul General of the Republic of Korea (RoK) in Ho Chi Minh City, said RoK businesses have been attracted to the area by its investment environment, convenient geographical location, transportation systems and infrastructure and simplified administrative procedures.

Nearly 160 RoK businesses have poured close to US$1.5 billion into the province so far and the RoK diplomat believes there are more on the way.

Keen to build on its initial success, Dong Nai has also sped up the construction of industrial zones (IZs) with an aim of having an additional 10 IZs operating in the province by 2010, bringing the total number of IZs in Dong Nai to 33.

Source: Vietnam Agency

U.S. Maritime Agreement Could Boost Vietnam’s Economy

Washington — A new bilateral U.S.-Vietnamese agreement on maritime services could make the Vietnamese economy more competitive internationally and help Vietnam attract more foreign investment and know-how, U.S. maritime administration officials say.

Signed March 15 in Washington, the Bilateral Maritime Agreement gives U.S. shipping service providers broader access to Vietnam’s growing transportation market, according to a U.S. Department of Transportation press release.

“The agreement puts American ship operators on an equal footing in Vietnam, paves the way to forming U.S.-controlled joint ventures, and sets a course to achieve wholly foreign-owned subsidiaries in Vietnam,” U.S. Maritime Administrator Sean T. Connaughton said in the release.

Under the agreement, U.S. shipping service companies will be able to acquire a controlling 51 percent share in joint-venture enterprises. Prior to the agreement, they were restricted to minority holdings in Vietnamese companies. Five years from the date of the agreement’s implementation, they will be permitted to operate without Vietnamese partners.

The United States welcomes foreign shipping businesses in its ports, and Vietnamese companies already have had access to American markets, a U.S. maritime official who did not wish to be identified told USINFO. “Our key goal was to achieve a level playing field,” the official said.

Opening shipping markets to U.S. and other Western companies could attract to Vietnam the best in global shipping and logistics practices today, the official said. And those practices can in turn boost foreign manufacturing sourcing in Vietnam by making it more reliable and profitable, the official said.

“There is a lot of money to be made” on streamlining the supply chains and moving goods quickly to global markets, the official said. The Vietnamese see a clear business advantage to their economy in bringing in Western software, technology and know-how, the official added.

The new agreement builds on previous U.S.-Vietnamese trade initiatives, which were launched following the 2000 Bilateral Trade Agreement between the two countries. Since then the United States and Vietnam have signed several other agreements, including ones on counternarcotics, textiles and civil aviation.

Trade between the two countries and U.S. direct investments in Vietnam have been growing since the countries normalized their diplomatic relations in 1995, and has quadrupled since the Bilateral Trade Agreement went into force in December 2001, according to U.S. government sources. Both countries also cooperate on health issues, including bird flu and HIV/AIDS.

(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

Vietnam and United States Announce Launch of TIFA Negotiations

After their March 16 meeting, U.S. Trade Representative Susan C. Schwab and Vietnam’s Deputy Prime Minister and Foreign Minister Pham Gia Khiem announced the launch of negotiations to conclude a Trade and Investment Framework Agreement (TIFA), which will serve as a platform on which the two countries will work to further strengthen their trade and investment ties.  The TIFA will establish a formal dialogue under which the two countries intend to discuss new initiatives to deepen their trade and investment ties.  It also will provide a forum for monitoring Vietnam’s implementation of its WTO and Bilateral Trade Agreement (BTA) commitments. 

Read more … .

U.S. honors local companies with awards

(SGT-HCMC) The U.S. Consulate on Monday presented the “Achievement in Trade” awards to five local enterprises in HCMC in a function organized at the Sedona Town Club in HCMC’s District 1, recognizing their role in boosting trade relations between the two countries.

The five enterprises comprised Anh Duy Manufacturing & Trading Co. Ltd., Dinh Khuong Co., Nexus Technologies Inc., I.M.A.C Co. Ltd. and Tan Lap Fire Equipment Installation & Trading Co. The ceremony was hosted by U.S. Consul General Seth Winnick and and principal commercial officer William Marshak.

According to the consulate’s public affairs section, the “Achievement in Trade” Award is an annual award to recognize local companies which have made significant contribution in boosting imports from the U.S.

Anh Duy Manufacturing & Trading Co. Ltd. is one of leading manufacturers and suppliers of electronic equipment in Vietnam. Dinh Khuong specializes in trading cosmetics and beauty products.

Nexus Technologies is a U.S. trading company which supplies equipment and services for a variety of heavy industries, including the oil and gas, electric power, aviation and port sectors.

I.M.A.C is provider of human resource services and business management training in Vietnam. This company has signed an exclusive franchise agreement with Dale Carnegie to supply the local market.

By KINH LUAN (Saigon Times Daily - Feburary 7, 2007)

Vietnam's top 10 FDI projects in 2006 include three U.S. investments

2. US-based Intel Corporation was granted an investment license in Vietnam with a total capital of US$ 1 billion to build a plant for test and assembly of microprocessors in the Ho Chi Minh City Hi-tech Park. The project was also the largest-ever investment from the US in Vietnam. Intel scheduled to recruit 4,000 domestic workers for the plant slated to operate by 2009. Read more … .

5. US-based Winvest Investment group planned $300 million to build a complex of resorts, five-star hotels and entertainment centers in the southern province of Ba Ria-Vung Tau. Read more …

10. The US-based International Textile Group (ITG) would invest $65.5 million to build a production complex in Da Nang central city. The complex was a joint venture of ITG’s Burling Worldwide subsidiary and Vietnam’s Phong Phu Corp, one of the largest state-run textile companies. Construction on the complex was set to start in the third quarter of this year, and production is to begin in early 2008, providing jobs for some 1,500 workers. Read more about ITG

Read more about “Vietnam’s top 10 FDI projects in 2006”

US investment in Vietnam likely $8 bln for 2007:

Ambassador Michael Marine, the US Ambassador to Vietnam forecast that foreign investment stateside into Vietnam will probably double the 2006 figure, hitting US$8 billion in 2007. The ambassador told reporters in Hanoi on Wednesday that investment from the United States to Vietnam in 2006 had reached the $4 billion mark.

US businesses would start to implement three or four major projects in Vietnam next year, he said, adding if this happens the US ’s investment in the country would rise to $8 billion.

He also said that most of businessmen from the US, Vietnam and other countries, who had taken part in the Vietnam Business Forum in Hanoi on Wednesday, were optimistic about the prospect of their investment in Vietnam .

“2007 and the time after 2007 will be a very good time for Vietnam to attract more FDI. However, this will not be the case unless Vietnam continues its economic reform,” Marine stressed.

Regarding bilateral relations between the two countries, the ambassador said the US considered Vietnam as not only a good partner in trade and investment, but also in strategic and political issues.

According to the Vietnamese Ministry of Planning and Investment, by last month, the US had 305 investment projects in Vietnam , with a combined registered capital of $2.1 billion and an estimated disbursement of $730 million.

The US now ranks 9th among the 75 countries and territories that have invested in Vietnam.

In addition, 74 other projects worth about $2.4 billion had been invested in Vietnam by US businesses via third party countries.

If combining direct investment from the US and its indirect investment through third countries, the total investment would be $4.4 billion, making the US Vietnam’s fifth largest foreign investor this year.

Source: VNA on thanhniennews.com

Vietnam Receives USTDA Country Of The Year Honors

HANOI – (November 16, 2006) As a result of Vietnam's strong and growing partnership with USTDA, Director Thelma J. Askey today presented the agency's 2006 Country of the Year honor to the Honorable Minister Doan Manh Giao, Chairman of the Office of Government, who accepted it on behalf of the Government of Vietnam. The presentation took place at the Office of Government, on the occasion of the Asia Pacific Economic Cooperation (APEC) Summit. The Honorable Michael Marine, U.S. Ambassador to Vietnam, also attended the presentation ceremony.

Vietnam is the fastest growing economy in Southeast Asia following the country's shift to a market economy, and its ongoing adoption of modern governance practices, improved investment regulations, and liberalization of the financial services arena," said Director Askey in making the presentation. "USTDA has been pleased to cooperate with strong partners in Vietnam to advance key development goals in a broad range of sectors. We look forward to maintaining a strong commitment to Vietnam in 2007 with activities that will foster an environment ripe for trade, investment, and sustainable economic development."

Since USTDA's program was launched in Vietnam in 1996, the agency has funded 36 activities and 18 orientation visits designed to support priority development projects and procurement opportunities in Vietnam. To date, those activities and visits have been associated with $210.5 million in U.S. exports in the transportation, energy, services, water and human resource sectors.

USTDA has responded to the emergence of Vietnam as an important economic participant in Southeast Asia by playing a significant role in strengthening the U.S.-Vietnam relationship. In 2006, the agency substantially expanded its Vietnam portfolio by providing assistance for activities designed to meet priorities established in the APEC forum, Vietnam's World Trade Organization accession negotiations, and its efforts to obtain permanent normal trade relations with the United States. USTDA was also active in the aviation and financial services sectors in response to Vietnam's substantial growth and the government's desire to meet international standards, promote market-oriented reform, and increase transparency.

The U.S. Trade and Development Agency advances economic development and U.S. commercial interests in developing and middle-income countries. The agency funds various forms of technical assistance, feasibility studies, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment. USTDA's strategic use of foreign assistance funds to support sound investment policy and decision-making in host countries creates an enabling environment for trade, investment and sustainable economic development. In carrying out its mission, USTDA gives emphasis to economic sectors that may benefit from U.S. exports of goods and services.

Welcome Address by the Director-General to Viet Nam at the General Council meeting of 7 November 2006

Today is an important day for the WTO family: the arrival of Viet Nam as its 150 th Member. As in any family, the arrival of a new member is both a moment of joy and celebration. Allow me therefore, on my behalf, as well as on behalf of all staff in the WTO Secretariat, to extend our warmest welcome to Viet Nam.

Read more >>

FPT gains a wealth of foreign experience

Texas Pacific Group (TPG) and Intel Capital last week pumped $36.5 million to acquire 10 per cent of Corporation for Financing and Promoting Technology (FPT), becoming the strategic partners of Vietnam’s leading IT firm. Timothy D. Dattels, managing director of TPG Newbridge, TPG's investment arm in Asia, explained the move to VIR's Trang Anh.

Read more >>

Hospitality sector draws investors

HCM CITY — Major foreign companies are expressing increased interest in Viet Nam’s tourism prospects, which are expected to improve after the country accedes to the World Trade Organisation, according to the Ministry of Planning and Investment.

Aware of the increasing flow of foreign tourists, several companies from Japan, the UK, South Korea and the US have sought investment opportunities in recent months.

A Japanese-invested tourism project near Da Lat in Lam Dong Province, already approved by authorities, is the largest so far in terms of investment capital.

The US$1.2 billion project is funded by four major Japanese corporations, Mitsui, Mitsubishi, Sumitomo and Limtec.

Korea’s Kumho Asiana Group will kick off two projects tomorrow, including the construction of a rubber tire plant, the biggest of its kind in Southeast Asia, with an investment capital up to $380 million.

The other involves a $200 million five-star hotel, apartment and retail trading complex near downtown District 1 in HCM City.

The UK’s Rockingham Corporation has submitted to the Ministry of Planning and Investment a project to invest in a marine tourist site worth $1 billion near the Sao and Vong beaches on Phu Quoc Island.

In an effort to target the Meeting, Incentives, Convention and Exhibition tourism (MICE), US Winvest LLC has invested and has received its license to build a five-star Saigon Atlantic tourist attraction in the seaside town of Vung Tau.

The $300 million project includes a deluxe hotel and an international conference centre capable of accomodating thousands of guests.

Another US corporation, the Platinum Dragon Empire, is exploring investment opportunities in the Vung Tau region that could be worth up to $550 million.

The world’s biggest hotel management group, Inter Continental Hotels Group, has also expressed interest in building its first hotel in 2009.

Along with major hotel chains and multinational companies, foreign investment funds are getting more involved in the tourism industry.

Two months ago, fund managed by VinaCapital were used to purchase 52.5 per cent of five-star Ha Noi Hilton Hotel’s stocks and its fund VinaLand invested in the five-star Sofitel Metropole, buying 70 per cent of all shares.

In October, a Macao casino firm contacted Saigontourist to inquire about opening a Las Vegas-style casino in HCM City.

In other tourism matters, Shell Corporation is negotiating with Vietnamese officials for petrol supply to Viet Nam’s aviation industry.

And Bangkok Airways as well as several foreign air carriers are discussing investment in Pacific Airlines, Viet Nam’s only joint-stock air carrier.

According to the Ministry of Planning and Investment, of the total $5.15 billion in foreign investment in Viet Nam over the last nine months, tourism and services accounted for $2.2 billion. — VNS  

US equity investors back Vietnamese software firm

Intel and a US investment group announced Monday plans to invest $36.5 million in FPT Corporation, Vietnam’s largest software company.

Intel would make the investment through Intel Capital, its venture capital arm, joined by private equity firm Texas Pacific Group.

FPT, a provider of information and communications-technology services, said it would use the funding to add new products and services and expand geographically.

This is one of the largest investments made in a Vietnamese technology firm by private equity investors from outside the country.

Read more >>

US giant Honeywell opens Vietnam office

US-based aerospace company Honeywell International marked its entry into Vietnam Friday by opening a representative office in Ho Chi Minh City.

Honeywell, which is worth US$30 billion by market capitalization, is also a well-known global provider of automatic control systems.

It has won a $17.5 million contract to supply control systems for Vietnam’s first oil refinery that is scheduled to go on stream in early 2009.

Technip Consortium, which will build the Dung Quat Oil Refinery for PetroVietnam, hired Honeywell to provide its Experion Process Knowledge System.

The system will integrate the refinery’s subsystems to give operators a clear view of how its processes are functioning. The US company will design, test, install and commission Dung Quat’s system.

It will also supply safety managers for emergency shutdown along with fire and gas protection systems.

Reported by N.Son – Translated by Ha Viet. From the ThanhNien News.com on October 21, 2006

Trade Minister Tuyen : Vietnam expected to join WTO "in early 2007 at the latest"

WASHINGTON (Reuters) – Mon, Oct 2, 2006. Vietnam’s hope to be a World Trade Organization member by the time President George W. Bush visits Hanoi in November looked in doubt on Monday after U.S. trade officials said there may not be a final deal soon.

“It’ll happen when all the issues are resolved. But the calendar does not trump the substance,” said Sean Spicer, a spokesman for the U.S. Trade Representative’s office.

Read more >>

Update and Background on PNTR Legislation and WTO Accession

Both the Senate and the House of Representatives plan to adjourn at the end of this week on Friday, Oct 6. The atmosphere is somehat tense as attention is focused on preparing for difficult midterm elections to be held four weeks later, on Tuesday, Nov 7. The Democrats need to win 15 seats to take control of the House and 6 seats to recapture the Senate. Read more >>

The United States and Vietnam: Vision for an Evolving Relationship.

Ambassador Marine gave remarks on US-Vietnam bilateral relations before a HCMC audience on Wednesday, September 20. The Ambassador addressed the successful collaborations between the two countries over the past few years, as well as areas of concern such as corruption, human rights, and religious freedom.

“The unprecedented pace, breadth and senior nature of our interchanges in the past 15 months marks a breakthrough to a new level of engagement.”

“The shared U.S. and Vietnamese interest in regional and global stability unites us in our cooperative efforts to combat terrorism.”

“[Vietnamese and American] efforts have and will continue to open our societies to one another, to deepen the American peoples' understanding and appreciation of Vietnamese culture and history, and to build the underpinnings of Vietnam's democratization.”

“. . .we are heartened by the commitment of Prime Minister Nguyen Tan Dung and his Government to tackle corruption in Vietnam and, with other global partners, we are willing to help in this important fight wherever we can.”

“The voice of the media in Vietnam needs to be heard on all issues.”

“Vietnam is well-placed to use its “traditional friendship” with the DPRK to help convince North Korea to forego these actions and end its isolation from the world community.”

To view the entire speech, click here

Vietnam’s accession to WTO likely next year

Trade Minister Truong Dinh Tuyen has implied the possibility that the country will join the World Trade Organization (WTO) early next year, instead of before the APEC Summit as expected. Speaking on the sidelines of a ceremony to grant awards for outstanding exporters in Hanoi over the weekend, he said the country could not gain WTO membership at any cost, citing differences in its multilateral negotiations over intellectual property, investment and State-owned enterprises.

From Saigon Times Daily - Sept. 25, 2006. Read more >>

Vietnam, US sign quality standard memorandum

A memorandum on standards and quality was signed by two Vietnam and US organizations on September 14 in Canada, announced the Vietnam Standards and Quality Directorates recently.

In detail, the Vietnam directorates and the American National Standards Institute (ANSI) have pledged to use international quality standards and ensure the application of national standards corresponding to the international commerce.

The two sides will also cooperate in using regional and international standards set by organizations including ISO (International Standardization Organization), IEC (International Engineering Consortium), among other agencies.

Besides, the two partners will exchange specialists and information on standardization, hold exhibitions and establish joint enterprises to facilitate the trading freedom between the two countries.

A US official said this memorandum was not compulsory but was valuable for business activities of Vietnamese and US companies.

Reported by Tr.Binh – Translated by Tuong Nhi.

Source: Thanh Nien News – September 20, 2006.

Vietnam: An economic star of Southeast Asia

Vietnam is an economic star in Southeast Asia, backed by its strong growth rate of 8%, an Asia Development Bank official told the audience at a press conference in Hanoi.

“Economically speaking, Vietnam is the star of Southeast Asia,” said Ayumi Konishi, country director of ADB’s Vietnam Resident Mission.

Vietnam’s strong gross domestic product has been well on course, with industry and services growing robustly, said the ADB Asia Development Outlook 2006 Update report released last Wednesday.

The report forecasts that the country’s economy will grow at 8% next year, up from the expected 7.8% rate this year. The high growth rate is spurred by Vietnam’s better business environment and its would-be membership in the World Trade Organization scheduled for the year’s end.

“Growth in private investment, strong consumption and robust exports are driving a dynamic economy,” said Konishi. Investment will grow by 15%, accounting for 38% of the GDP, the ADB report said.

Industry and service will continue to make up 80% of the GDP and will remain the growth engine for Vietnam.

The report forecasts Vietnam’s inflation rate will be 8.3% this year from the projected 6%. Higher fuel prices and rising prices for food, housing construction materials and transport are the factors behind the soaring inflation.

In the first half of this year, the economy grew by 7.4%, thanks to robust private investment, consumption and exports, versus the 7.6% previously projected. This year, industrial growth is predicted at 10% and service at 8%.

Agriculture still plays a crucial role in the national economy as it accounts for 57% of the total employment. However, agricultural share in the GDP has plunged over the years.

Export will remain Vietnam’s economic spearhead. This year’s export growth is expected to be 22%, and next year’s will be 18%. The export growth will outpace import rate and further narrow the country’s trade deficit. Meanwhile, strong remittance is expected to tip the current account toward a slight surplus.

From Saigon Times Weekly - Sept.16, 2006.

APEC Senior Officials Complete Preparations for Nov APEC Summit Meetings

Da Nang, Viet Nam, September 17, 2006. APEC Senior Officials have concluded their Third Meeting for 2006 with consensus on a number of issues that will be presented for endorsement by APEC Ministers and Leaders in November.

Senior Officials reviewed reports from the Chairs of APEC Committees who discussed the progress in preparing their annual reports to APEC Ministers.

APEC’s Committee on Trade and Investment (CTI) presented a number of issues including a review of sub-fora, and consideration of how these might be reformed to better assist APEC to realize its free trade and investment goals. Senior officials also discussed APEC’s work on intellectual property rights, life sciences, technology choice principles, RTAs/FTAs and an upcoming Trade Facilitation Action Plan Report. The CTI will now finalize recommendations in the “2006 CTI Annual Report to Ministers” for presentation in November. Read more >>

Prime Minister Approves Saigon Port - SSA International Container Terminal

SEATTLE— Vietnam Prime Minister, Nguyen Tan Dung, has approved the establishment of a joint venture between Saigon Port and SSA Marine to develop and operate SP-SSA International Container terminal (SSIT) at Cai Mep, in the Ba Ria-Vung Tau Province. SSIT will support container traffic in the greater Ho Chi Minh City area. Ho Chi Minh City container traffic is currently 2,200,000 TEU’s per year and growing at an average rate of 20% per year.

"We are very pleased the Prime Minister approved our project. SSIT is a critical element in Port Area 5’s long term plan to shift container volume from the existing ports in Ho Chi Minh City to less congested deep water container terminals," stated Le Cong Minh, director general of Saigon Port.

The joint venture between Saigon Port and SSA Marine is the first proposed international joint venture container terminal approved by the Vietnamese government for the Cai Mep – Thi Vai Region.

"Vietnam’s economy and container volume are growing at unprecedented levels. Couple this growth with Vietnam’s future admission to WTO, and it’s obvious this additional container terminal capacity will be required as quickly as possible. We are moving forward with our engineering and hope to have this world class terminal operating in 2009," emphasized Bob Watters, SSA Marine vice president – managing director Asia.

SSIT will consist of 600m of berth and 60 hectares of back-up land. It will have a total annual capacity of 1.35 million TEU’s. The total cost to construct and equip the terminal is $160,000,000.

About SSA Marine

SSA Marine, a subsidiary of Carrix, Inc., is the largest U.S. owned, and the largest privately held container terminal operator and cargo handling company in the world, handling approximately 22 million container TEU’s per year. The nearly 60 year old company serves more than 120 locations worldwide, including port operations throughout the U.S. as well as internationally in Panama, Mexico, Chile, Costa Rica, South Africa and New Zealand.

About Saigon Port

Saigon Port is under the Vietnam National Shipping Lines Corporation (Vinalines) and operates 5 terminals in South Vietnam with nearly 4,000 employees, more than 3 km of wharf length, 30 buoy berths and total area of approximately 600,000m2. Cargo throughput has increased from less than 1,000,000 to more than 12 million tons annually. For many years Saigon Port has been a leader in terminal operations, for all types of cargo, in Vietnam.

U.S. Trade Representative strengthens focus on Southeast Asia

WASHINGTON, DC 06 Sep 2006. U.S. Trade Representative Susan C. Schwab today announced a reorganization to support its stepped up efforts in Asia, where deepening trade relations is a top USTR priority.

The Office of Southeast Asia and the Pacific is currently negotiating Free Trade Agreements (FTAs) with Thailand and Malaysia, recently concluded a Trade and Investment Framework Arrangement with ASEAN, and is working to further strengthen U.S. trade and investment ties to the region through a variety of other initiatives. The shift of pharmaceutical policy to the new Office of Intellectual Property and Innovation will allow the Southeast Asia to concentrate its efforts on achieving these important goals.

The Office for Southeast Asia-Pacific is led by Assistant U.S. Trade Representative Barbara Weisel ...Read more>>

US grant promotes aviation safety

HA NOI — The US Trade and Development Agency made a US$351,372 grant yesterday to the Civil Aviation Administration of Viet Nam to help bring the nation’s aviation safety up to international standards and open US airports to Vietnamese air carriers ...Read more >>

Vietnam -- AsiaNow's Featured Market of the Month - April 2006

Vietnam no longer fits the American stereotype. It is one of the most dynamic markets in the world. Envisioning Vietnam as a land full of conical hats, emerald green rice paddies, and women in ao dais biking along a dusty street is an antiquated image. Ho Chi Minh City, Hanoi, and Danang are burgeoning into cosmopolitan cites that are bustling with small businesses and tourists ...Read more >>

U.S. DOC honors local business (Saigon Times Daily - Ho Chi Minh City, Vietnam)

(SGT-HCMC) The U.S. Department of Commerce honored five Vietnamese companies in recognition of their significant contributions to promoting U.S. exports to Vietnam at a reception in HCMC yesterday.

On behalf of the department, U.S. consul general Seth Winnick handed U.S. Buyer Achievement Awards to DNK Trading and Technical Service Ltd., My Phuong Ltd., Sunshine Joint Stock Co., Tre Publishing House and Yen Nhi Trading Co.

This was the first time the department had given this award to recognize and thank the outstanding Vietnamese businesses that have demonstrated their commitment to promoting U.S. products and services in Vietnam.

Robert Bannerman, principal commercial officer at the U.S. consulate general in HCMC said at the reception that the U.S. Commercial Service in HCMC and Hanoi had been working hard to introduce U.S. products and services to Vietnam.

“Since the implementation of the U.S.-Vietnam Bilateral Trade Agreement, U.S. merchandise exports to Vietnam have more than doubled. Non-aviation exports see double-digit growth each year,” Bannerman said.

Lemna International Inks Contract and Breaks Ground on Solid Waste Treatment Facility in Vietnam.

Principal Commercial Officer Robert Bannerman witnessed the signing of a $36 million contract for the construction of a municipal solid waste treatment facility between Lemna International, based in St. Paul, MN, and the Ho Chi Minh City Department of Natural Resources and Environment. Following the signing of the contract, Bannerman participated in a groundbreaking ceremony to commence construction on Phase I of this project, worth $19 million, which is expected to be completed in mid-2006.

Lemna created a wholly owned subsidiary, Vietstar Ltd., to manage the facility that will employ 600 workers and treat 1,200 tons of garbage a day. The garbage, after separating out recyclable materials, will be converted into organic compost and sold at a profit to local farmers in Vietnam.

In a speech that was extensively reported in the local press and television, Bannerman noted that this project has received the strong support of the U.S. government, including the U.S. Commercial Service, the U.S. Trade and Development Agency which funded the feasibility study, the U.S. Embassy in Hanoi and the Consulate General in Ho Chi Minh City, and now OPIC which is looking at providing financing to Lemna/Vietstar. He said this low-cost, environmentally friendly solution to the city's solid waste problem is a win-win situation for all parties.

Vietnam Revs Up (Newsweek International)

Asia's upstart is challenging China in light manufacturing and pulling in nearly as much foreign investment as India. Read more >>

US - Vietnam Relation to a New Height (Vietnam Business Forum)

On the occasion of the 10th anniversary of the establishment of diplomatic relations between the US and Vietnam, Vietnam Business Forum talked with Mr. Seth D. Winnick, the US Consul General in Ho Chi Minh City. Read more>>