Vietnam and U.S. sign ‘Vietnam Competitive Ininitative"



Vietnam and the US signed a letter of commitment to implement the ‘Vietnam Competitive Initiative’ (VNCI) in Washington last Friday.

VNCI is a project that provides technical assistance to help implement Bilateral Trade Agreement between the two countries.

The project's purpose is to create a legal framework and more competitive policies to increase investment and generate more employment from the private sector, widen bilateral trade channels and accelerate the process of poverty reduction. The project will also help raise competitiveness, cut input and other transaction costs, provide greater access to financial sources, and aid small and medium-sized enterprises in increasing their export share and revenues.

The project is to be carried out from December 5, 2003 to September 30, 2006 with an estimated US $5.6 million funded through USAID.

The letter was signed by Deputy Minister of Planning and Investment Nguyen Bich Dat and Deputy Director of the USAID Wendy Chamberlin.

Speaking at the signing ceremony, Deputy Minister Nguyen Bich Dat said Vietnam most appreciated the project to improve competitiveness, and expected that through this project, bilateral trade and investment activities would further develop in the near future.

Deputy Minister Dat said that the Vietnamese government is fully devoted to its international commitments and is preparing for entrance to the WTO. However, the Vietnamese economy is small and Vietnamese companies and goods' competitive strength is still weak. Most Vietnamese businesses have small capital and limited experiences in international trade.

The deputy minister lectured his hosts on the outstanding socio-economic achievements Vietnam has recorded in recent years, especially in keeping the macro economy in balance, reducing poverty and maintaining socio-political stability in order to facilitate foreign investment and businesses.

Wendy Chamberlin said VNCI is being implemented on a pilot basis in Hanoi and Ho Chi Minh City in the areas of software, information technology, vegetables and fruit, and pottery and ceramics. She said that she hoped for a VNCI extension to other areas in the coming years. (VNA)