Socialist Republic of Vietnam

Washington, Sept. 12 (VNA) -- Viet Nam and the United States pointed out the need to build a framework for their long-term and stable relationship in conformity with interests of the two nations and for peace and stability in the region and the world.

The view was shared during meetings and talks held in Washington from Sept. 9-11 between visiting Vietnamese Foreign Minister Nguyen Dy Nien and U.S. senior officials.

FM Nien paid a visit to Washington on the occasion of his participation in the 57th United Nations General Assembly.

During the visit, FM Nien met and had working sessions with key leaders from the U.S. Administration, Congress, and business circles.

He held talks with First Deputy U.S. Secretary of State Richard Armitage, met with Commerce Secretary Don Evans, and had a working session with First Commerce Secretary Samuel Bodman.

He also met with a number of Senators, including Senator John Kerry, President of the Asia-Pacific sub-committee of the Senate's External Affairs Committee; Senator John McCain, the Senate's Commerce, Science and Transport Committee Minority Leader, and other congressmen.

The two sides expressed their pleasure at positive developments in the relationship between the two countries, particularly since the bilateral trade agreement (BTA) took effect in December of 2001. They pointed to the need to boost economic and commercial cooperation of mutual benefit.

U.S. congressmen and government officials welcomed Viet Nam's policy to continue with renewal and open-door foreign policy. They promised to contribute to boosting bilateral relations.

First Deputy Commerce Secretary Samuel Bodman said that the Commerce Department strongly supported the implementation of the BTA and the expansion of trade ties. He added that the Trade Department would fairly consider the basa and tra catfish lawsuit in a bid to prevent negative impacts upon the bilateral relations.

FM Nien also worked with representatives from leading business groups, namely the Citigroup, Boeing, Nike, GE, and New York Life.


On Sept. 12, FM Nien left Washington for New York to take part in the UN's activities.--Enditem

The following is Speech By H.E. Mr. Nguyen Dzy Nien, Foreign Minister of Vietnam At the Meeting with US Businesses ( 12:00-14:00, 11 September)

Dear Mr. Lonel Johnson, vice President of the Citigroup

Dear Madame Virginia Foote, President of US-Vietnam Trade Council,
Friends,

Ladies and Gentlemen:

It is indeed a great pleasure for me to be here with you again at this important meeting.

Today, on the occasion of the first anniversary of September 11 tragedy, which stirred terror and outrage of the American people and international community, on behalf of the Vietnamese people and Government, I would like to extend to you, American friends, our deep sympathy and condolences to the US people and Government, especially to the families of bereaved for their losses. Vietnam has been working closely with the US on both bilateral and multilateral basis to prevent and eliminate acts of terrorism from our life. Vietnam’s consistent policy has been highly appreciated by the US.

I am so pleased to see in our get-together today many familiar faces, the closed friends of Vietnam. I would like to convey to you all our warmest greetings and best wishes. Your presence here today is a great source of encouragement for us as it not only shows your keen interests in our country but also a vivid indication of a bright prospect for mutually beneficial cooperation between the US and Vietnamese businesses.
I am confident that this gathering will be a good opportunity for us to exchange views on issues of mutual concern.

In my presentation, I would like to touch upon two main areas:
First, recent developments in the Vietnam-US relationship and second, the Vietnamese economic situation, its ongoing reform process, and measures aimed at creating an enabling environment for foreign businesses and investors.

Now, let me turn on to brief you on the overall relationship between our two countries.

It is noteworthy that, in recent years, the overall Vietnam-US relationship has seen encouraging developments, especially since the entry into force of the Vietnam-US Bilateral Trade Agreement in December 2001, which has helped further deepen our bilateral relations and open a larger window for our cooperation. Our trade ties have been augmented. Trade volume has been grown up more than 50%. There remain vast potentials for our mutually beneficial cooperation, which should be fully tapped. Besides the trade ties, numerous opportunities for our economic cooperation are emerging either between our two countries or between individual States of the US and Vietnam, or between the two countries' businesses in many fields.

In parallel with the growing economic and trade ties, political relations between the two countries have also seen positive developments. Exchange of delegations and leaders' contacts between the two countries have been increased to enhance mutual understanding and bring about favorable conditions for addressing outstanding issues, thus creating a new momentum for our bilateral relations. Both sides have seen the need for formulating a framework for a long-term and stable relationship. For your information, I would like to let you know that, during talks, State Secretary Colin Powell, many other US government officials and Congressional leaders and myself exchanged views on ways and means to strengthen our bilateral relations, the measures that are of great importance to building better and more stable political relations, which in turn will facilitate trade and investment cooperation. I also would like to emphasize the great potentials for cooperation between the two countries in the region and the world and on both bilateral and multilateral basis. On our part, the Vietnamese Government will work closely with the US Government to tap these potentials in order to further promote the relations of friendship and cooperation between our two sides.­

Now, let me brief you on the Vietnamese economic situation and measures we have taken to develop the Vietnamese economy and create more favorable conditions for foreign investors and businesses to do business in Vietnam.

Regarding the economic situation: Last year, despite unfavorable regional and global economic conditions, Vietnam still enjoyed high economic growth of 6.8%, industrial output increased by over 14%, services over 6.4% while inflation rate was controlled at below 3%. This year the growth rate could be about 6.8%, a little less than the target. In the years to come, our goal is to sustain an annual economic growth rate of 7 % on average. As targeted, in the year 2010, our GDP will double that of 2000 and export growth increase as twice as much of GDP growth rate. To these ends, we will continue to step up the reform process while taking full advantage of financial sources for development including domestic and external ones.

Regarding the accelerated economic reforms: Our new government is determined to accelerate the economic reforms. In 2001, the Government made public the detailed reform programme on SOEs, banking system, trade liberalization, public finance management, and business environment for private sector. The Vietnamese policies and laws have been unceasingly improved towards a more favorable environment for economic development and in conformity with international practices. The promulgation of the Enterprise Law and a host of legal documents has greatly improved the legal framework, thus making the investment and business environment more conducive and creating a new momentum for socio-economic development in Vietnam. In 2000 and 2001only, 35,457 companies were established, equivalent to the total figure of the previous 9 years, with the total registered capital of around US$4 billion. In just the first 6 months of 2002, there were over 10,700 newly registered companies with the capital of around US$ 950 million .The private sector is enjoying more favorable and equal conditions with substantial contribution made to the development of the economy.

In order to attract foreign investment capital, we continue to improve the Law on Foreign Investment in Vietnam. As of the end of 2001, Vietnam has attracted more than 3,700 foreign invested projects with the total registered capital of around US$ 41 billion, mainly in the industries of oil and gas, telecommunications, automobile, chemicals, electronics, garments and textiles, hotels and tourism. Foreign invested companies in Vietnam have brought about fresh impetus and enormous changes to the Vietnamese economy. Foreign investment plays an increasingly important role in the Vietnamese economy, accounting for one forth of the country's investment capital, 12.7% of GDP, 34% of industrial output, over 7% of state budget, and generating around 350,000 and millions of direct and indirect jobs respectively.

Nevertheless, for the 2001-2005 period, Vietnam needs, at the minimum, US$ 11 billion of foreign investment. In this regard, Vietnam attaches importance to attracting investment from trans-national corporations and encouraging small and medium scale investment projects in high-tech and export-led industries, agricultural and rural industries, which effectively utilize natural resources and generate employment.

In building a more attractive business environment, the Vietnamese Government will continue to undertake economic and administrative reforms. We will gradually improve the policy framework and the legal system so as to establish a transparent legal system along the line of the market mechanism and create a level playing field between the private and public sectors, and between domestic and foreign-invested businesses. In this connection, we are taking measures to reduce business costs, review and streamline foreign investment regulations to enhance the effect of State management and productivity of businesses. In foreign economic relations, the Vietnamese Government's policy is to actively engage the world by fulfilling commitments to tariff reduction under ASEAN’s CEPT/AFTA roadmap; implementing the Vietnam-U.S Bilateral Trade Agreement and actively negotiating for WTO membership.

Over the past years, the economic cooperation between Vietnam and the U.S. has seen rapid progress. The U.S. has become an important economic partner of Vietnam. With a complete legal framework for cooperation, Vietnam and the US will have enormous opportunities for cooperation, especially in high-tech and services industries. We understand that the trade and investment bonds between our two countries could not have been to this level without your support and active efforts to influence the US Government. The Vietnamese Government highly appreciates your contribution and hopes that you will continue to call on the U.S. Government and Congress to eliminate the Jackson-Vanik Amendment against Vietnam, thus creating the leverage for the development of Vietnam- U.S economic ties. We also look forward to your continued cooperation in doing away with negative developments in our bilateral relations, including the Vietnam Human Rights Bill.

I thank you for your time and keen interests in the economic development in Vietnam. I would also like to reassure you of the Vietnamese Government’s commitments to building a more enabling environment for foreign investors in Vietnam. It is our hope that, in the near future, with the entry into force of the Vietnam- US Bilateral Trade Agreement, US investors and businesses will chose Vietnam as their destination.

Finally, I would like to thank Madame Virginia Foote, the President of US-Vietnam Trade Council, Mr. Lionel Johnson, Citigroup , all of you presented today for giving me this wonderful opportunity to meet with you and have a very pleasant time.

I look forward to working closely with all of you.