On July 25, 2013, during Vietnamese President Truong Tan Sang’s state visit to the US, the two countries forged a comprehensive partnership. What significant changes have been made through the signing of this partnership, particularly in the trade and investment sectors?
The US-Vietnam Comprehensive Partnership is one of the most significant achievements between our two countries since we normalised diplomatic relations nearly 20 years ago. It is a symbol of how far we have come, and of what our future holds. This partnership provides a framework to further strengthen our trade and investment ties. In this context, our leaders have reconfirmed their commitment to concluding the Trans-Pacific Partnership (TPP) free trade agreement which will greatly increase trade and deepen Vietnam’s economic integration with nearly 40 per cent of the world’s economy. The TPP will also spur new investment from US companies looking for strategic and stable places in which to expand their businesses.
The comprehensive partnership and TPP also strengthen partnerships and create frameworks for significant US government assistance programmes through USAID, the Department of State, the US Department of Agriculture, the Department of Treasury, and the Department of Labour, among others. This assistance will contribute directly to reforms and capacity building that will increase trade and boost growth.
What is being done to further promote this partnership?
The strength of this comprehensive partnership depends on the actions of both sides. One way we advance our partnership is through high-level visits. Since signing the agreement in July 2013, Vietnam has received an unprecedented number of visits including Secretary of State John Kerry, Treasury Secretary Jacob Lew, Secretary of Commerce Penny Pritzker, and US Trade Representative Michael Froman. Other visitors have included US Environmental Protection Agency Administrator Gina McCarthy and several congressional delegations. We hope and fully expect such visits to continue.
But this comprehensive partnership is more than high-level visits. It is a declaration of friendship, and a commitment to pursue a deeper understanding between our two countries. It requires listening closely, keeping an open mind, and agreeing to a dialogue, even when our viewpoints differ. As we move toward the 20th anniversary of the normalisation of US-Vietnam relations in 2015, we will continue to advance the comprehensive partnership, celebrate our achievements, and look forward to even stronger co-operation over the next 20 years and beyond.
The TPP currently remains under negotiation and is expected to be inked in the near future. What do you think about our two countries’ trade and investment co-operation prospects after the TPP is signed?
I am very bullish on the TPP, and believe it has the power to greatly strengthen our economic relationship and transform Vietnam’s economy. The TPP will take trade and investment co-operation between our two countries to a new level. By reducing tariffs, increasing transparency, and strengthening protection for investors, the TPP will open the door to vast new areas of foreign investment. This is already starting to happen, as sectors such as textiles and apparel are shifting their supply chains to Vietnam in anticipation of the agreement. As Secretary Kerry said last December, with assistance “the United States will help support Vietnam’s ongoing transition to a more inclusive, market-based economy that is based on the rule of law” to help make the TPP a success for both countries.
Vietnam and the US clinched a Bilateral Trade Agreement (BTA) in 2001. How has Vietnam benefited thanks to the BTA over the past 13 years, and what has yet to be achieved?
The BTA was the greatest milestone in the US-Vietnam relationship. By helping Vietnam open up to the outside world, it paved the way for increased trade and prosperity. The proof is in the numbers. Since the signing of the BTA, two-way trade between our two countries has grown from $1.5 billion to $29.7 billion, an increase of almost 20 per cent per year. After signing the BTA, Vietnam went on to join the World Trade Organization in 2007. And since then, also with our technical assistance, Vietnam has embarked on a major policy of economic integration by joining the TPP talks and embarking on free trade agreement negotiations with the European Union, the Republic of Korea, and many others.
Many experts have said that for the US, Vietnam is becoming one of the more strategically important nations in Southeast Asia, with its significant commercial commitments and contribution to ASEAN’s ever-increasing strength. Vietnam is also playing one of the most key roles in the establishment of the TPP. What do you think about this?
The US wants a strong, prosperous, and independent Vietnam. It is in our strategic interest for Vietnam to make its own decisions and develop along a path of its own choosing. Economic independence plays a significant role in achieving this objective. This is one reason we approached Vietnam about joining the TPP. It will help develop the commercial and economic ties that will strengthen Vietnam’s economy and fortify our strategic partnership.
The comprehensive partnership and TPP also strengthen partnerships and create frameworks for significant US government assistance programmes through USAID, the Department of State, the US Department of Agriculture, the Department of Treasury, and the Department of Labour, among others. This assistance will contribute directly to reforms and capacity building that will increase trade and boost growth.
What is being done to further promote this partnership?
The strength of this comprehensive partnership depends on the actions of both sides. One way we advance our partnership is through high-level visits. Since signing the agreement in July 2013, Vietnam has received an unprecedented number of visits including Secretary of State John Kerry, Treasury Secretary Jacob Lew, Secretary of Commerce Penny Pritzker, and US Trade Representative Michael Froman. Other visitors have included US Environmental Protection Agency Administrator Gina McCarthy and several congressional delegations. We hope and fully expect such visits to continue.
But this comprehensive partnership is more than high-level visits. It is a declaration of friendship, and a commitment to pursue a deeper understanding between our two countries. It requires listening closely, keeping an open mind, and agreeing to a dialogue, even when our viewpoints differ. As we move toward the 20th anniversary of the normalisation of US-Vietnam relations in 2015, we will continue to advance the comprehensive partnership, celebrate our achievements, and look forward to even stronger co-operation over the next 20 years and beyond.
The TPP currently remains under negotiation and is expected to be inked in the near future. What do you think about our two countries’ trade and investment co-operation prospects after the TPP is signed?
I am very bullish on the TPP, and believe it has the power to greatly strengthen our economic relationship and transform Vietnam’s economy. The TPP will take trade and investment co-operation between our two countries to a new level. By reducing tariffs, increasing transparency, and strengthening protection for investors, the TPP will open the door to vast new areas of foreign investment. This is already starting to happen, as sectors such as textiles and apparel are shifting their supply chains to Vietnam in anticipation of the agreement. As Secretary Kerry said last December, with assistance “the United States will help support Vietnam’s ongoing transition to a more inclusive, market-based economy that is based on the rule of law” to help make the TPP a success for both countries.
Vietnam and the US clinched a Bilateral Trade Agreement (BTA) in 2001. How has Vietnam benefited thanks to the BTA over the past 13 years, and what has yet to be achieved?
The BTA was the greatest milestone in the US-Vietnam relationship. By helping Vietnam open up to the outside world, it paved the way for increased trade and prosperity. The proof is in the numbers. Since the signing of the BTA, two-way trade between our two countries has grown from $1.5 billion to $29.7 billion, an increase of almost 20 per cent per year. After signing the BTA, Vietnam went on to join the World Trade Organization in 2007. And since then, also with our technical assistance, Vietnam has embarked on a major policy of economic integration by joining the TPP talks and embarking on free trade agreement negotiations with the European Union, the Republic of Korea, and many others.
Many experts have said that for the US, Vietnam is becoming one of the more strategically important nations in Southeast Asia, with its significant commercial commitments and contribution to ASEAN’s ever-increasing strength. Vietnam is also playing one of the most key roles in the establishment of the TPP. What do you think about this?
The US wants a strong, prosperous, and independent Vietnam. It is in our strategic interest for Vietnam to make its own decisions and develop along a path of its own choosing. Economic independence plays a significant role in achieving this objective. This is one reason we approached Vietnam about joining the TPP. It will help develop the commercial and economic ties that will strengthen Vietnam’s economy and fortify our strategic partnership.
