Socialist Republic of Vietnam

Even the governor of Washington State came to promote American apples in a Vietnam marketplace
The Vietnam-U.S. Bilateral Trade Agreement (BTA) has been in effect for three years with a most notable achievement of robust two-way trade growth, making the U.S. one of the top ten investors in Vietnam.
Two-way trade between Vietnam and the U.S. has increased considerably since the BTA went into effect on Dec. 10, 2001. Trade revenue jumped to nearly $ 5.8 billion US in 2003 from $ 1.4 billion in 2001.

Increased two-way trade

The U.S. has continued to be the largest importer of Vietnamese goods despite the Vietnamese catfish and shrimp dumping case and quotas on garment exports.

Stateside shipments of Vietnamese goods increased to $ 4.5 billion in 2003 from $ 1 billion in 2001.

In the first nine months of this year, Vietnamese goods sold to the U.S. amounted to $ 4 billion, up 8.9 percent from last year, according to U.S. Customs Service statistics. Vietnam has become the 35th biggest exporter to the U.S. market.

The sale of textiles to the U.S. this year is predicted to attain a 20 percent increase, said Vietnamese Deputy Trade Minister Le Danh Vinh.

Textile/garment exports to the U.S. reportedly earned Vietnam the highest revenue compared to other products.

In 2003, the stateside export of textile/garments earned Vietnam record revenues of $ 2.5 billion US, or an annual increase of 160 percent. That figure accounted for 56.2 percent of Vietnam’s total revenue from exports to the U.S. last year.

So far this year most products exported to the U.S., including apparel, furniture, footwear and farm produce, with the notable exception of seafood, have seen growth in sales.

In the Jan.-Sept. period of this year, the U.S. was reported to have witnessed a 20 percent decrease in sales to Vietnam. The sale of cotton and timber to Vietnam is estimated to increase by 100 percent and 111.3 percent respectively in the remainder of the year.

U.S. revenue from Vietnam-bound exports made a big leap in 2003 as Vietnam signed a deal to buy Boeing airplanes for its national flag-carrier Vietnam Airlines.

Investment on the increase

Meanwhile, investment flow from the U.S. has also been on the increase since implementation of the BTA.

U.S. investors have so far pledged nearly $ 1.3 billion US for 209 projects in Vietnam, becoming one of the 10 largest foreign investors in Vietnam for the first time, according to the Vietnamese Ministry of Planning and Investment.

U.S. companies have opened 100 representative offices in Ho Chi Minh City while in 2001 there were only 40.

It is estimated that U.S. investment flow will increase remarkably in the coming years as most of Vietnam’s sectors were scheduled to open to U.S. investors within 5-7 years after the BTA went into effect.

U.S. companies are expecting a bright investment future in Vietnam.

Ian K. Marsh, Asia-Pacific general director of Western Union Financial Services Inc., said he had an optimistic view about the development of Vietnam’s financial sector.

“In the past 10 years, Western Union has expanded its money transfer agent network in Vietnam from 300 to 3,000 agents. We have achieved a spectacular growth on the market. This is a great potential market for financial companies,” said Mr. Marsh at a recent ceremony to mark the 10-year anniversary of the company’s operations in Vietnam.

Joe Mannix, general director of United Airlines in Vietnam, places big hopes on Vietnam’s aviation industry. “Vietnam’s air travel is estimated to grow by 10-12 percent in the near future. U.S. business people and tourists will continue traveling to Vietnam,” said Mr. Mannix.

“We want to act as the initiator for a new stage in the trade relations of the two countries,” he added. United Airlines Flight 869 was scheduled to take off from San Francisco to HCMC yesterday Dec. 9, making United the first American carrier to fly directly into Vietnam since the war ended in 1975.

Reported by Trung Binh - Translated by T.H.
Story from Thanh Nien News
Published: 09 December, 2004, 23:31:01 (GMT+7)
Copyright Thanh Nien News