Socialist Republic of Vietnam

Ha Noi July 4 (VNA) -- An agreement on aviation cooperation and another on drug control between the U.S. and Viet Nam will be signed in the near future, American Ambassador to Viet Nam Pete Peterson told the International Cultural and Economic Exchange Club on July 3.

Before ending his term of office in Viet Nam, the Ambassador thanked the Vietnamese Government and people for their active assistance in finding the remains of American servicemen missing in action from the war.

About the Viet Nam - U.S. bilateral trade agreement (BTA), he expressed hope that it would be ratified by the two countries' legislative bodies in the next few months, emphasising that the BTA would create conditions for Viet Nam to sharply increase exports to the U.S., such as textiles, garments, footwear, fine arts, and farm produce.

He also advised Vietnamese entrepreneurs that they would benefit from gaining a better understanding of American habits in carrying out transactions and deals as well as a better understanding of the rules of the U.S. market. This will help them to take advantage of the opportunities for trade that the BTA will produce.

"Many U.S. businesses are requesting information about Viet Nam so that they may start investing or expanding business in Viet Nam right after the BTA is ratified," he stressed.

According to those who had taken part in the negotiation for the BTA, when the agreement comes into force, Viet Nam's exports to the U.S. will enjoy the U.S. normal trade relations. This means that the tariff rate will drop from an average of 40 percent to 3 percent. The tax rates will fall strongly regarding some groups of staples, they said, citing garments and textiles, which will see their tax rates drop from 60 percent to 5 percent.

The Viet Nam-U.S. import - export turnover is expected to double in the BTA's first year, they added.

The General Statistics Office says that the two-way trade value between the two countries chalked over USD 1 billion in 2000, a rise of USD 245 million over 1999. In the first six months of 2001, the figure is estimated to have reached USD 562 million, with Viet Nam's trade surplus being valued at USD 400 million.

The U.S. had 119 investment projects with a combined capital of over USD 942.8 million in Viet Nam by the end of May, 2001. As a result, it occupied the sixth place on the list of countries and territories investing in Viet Nam.--VNA