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Southeast Asia

US warms up to Vietnam
By Tran Dinh Thanh Lam

HO CHI MINH CITY - Vietnamese Minister of Defense Pham Van Tra said his recent trip to the United States "will pave the way for future visits by military delegations from the two countries", but far beyond that it is the latest sign of warming ties between the former enemies.

Tra's visit, which took place from November 8-12, will also have an immediate effect. This month, a US naval vessel will visit Ho Chi Minh City in the first such port call since the war between the two countries - now trading partners - ended with the fall of South Vietnam and the final departure of the last of the American troops in 1975.

Indeed, for Vietnam in the years since market reforms, trade numbers are most important. The United States has become the biggest importer of Vietnamese goods, having racked up an import bill of US$3.1 billion from January to August this year, according to the US Trade Service Agency in Hanoi.

That now puts the United States ahead of Vietnam's long-time key export destinations, the European Union and Japan, and is a huge increase over its own total imports from Vietnam last year of $2.4 billion.

Vietnam's Ministry of Trade is even more bullish and has predicted that exports to the United States will increase 130 percent per annum in coming years, with garments and textiles recording the highest gains.

The numbers and the expectations are the gloss on Tra's visit, which came amid a backdrop of recent revelations of further atrocities committed by US soldiers during the Vietnam War. The exposes, documented in the US newspaper the Toledo Blade, have shocked readers worldwide, but the government in Vietnam has appeared uninterested in dwelling on these tragic episodes.

Instead, veteran Nguyen Dinh, 67, termed Tra's visit "very encouraging news". He sees it as helping "push forward mutual understanding between our countries".

Military relations between the US and Vietnam have shown signs of improvement since the visit of US defense minister William Cohen three years ago, the first such visit since the end of the war.

"At the time, [Cohen] affirmed that the issue of those missing in action remained the top priority ... in military relations between the United States and Vietnam," said Dinh. "Now that the two countries have reached significant results, military relations could be improved."

As of May, Vietnam has already handed over to US officials the remains of some 805 soldiers killed in action in Vietnam.

Before his visit, Tra made assurances that his meetings with US Defense Secretary Donald Rumsfeld and National Security Adviser Condoleezza Rice would focus entirely on "ensuring peace and security in the region and in the world".

Observers say Vietnamese military officials would like the US government to take a more active role in the Southeast Asian region, although they remain wary about China's reaction. Both Vietnam and the United States want to maintain friendly economic and diplomatic ties with China, which is viewed in Hanoi and Washington as an extremely valued trading partner.

Despite the bonhomie that surrounded Tra's visit, it is not a relationship without its irritants. The US International Trade Commission last July endorsed a finding by the country's Commerce Department that concluded that Vietnam had dumped catfish in the US market, after which duties of up to 64 percent were slapped on Vietnamese frozen fillets.

This hurt the fish industry in Vietnam. Furthermore, last year Vietnam exported shrimp worth more than $400 million to the United States, yet now it is facing legal action from US shrimp farmers who claim the Vietnamese exports are undercutting their industry.

However, the two countries believe they can still do business, and last month, they signed an agreement to start direct flights between the two countries.

Besides, US exports to Vietnam are also on the rise thanks to large orders. From January to August 2003, US exporters sent more than $944 million worth of goods to Vietnam, a huge increase from the previous year's $580 million.

From Vietnam's point of view, that is not all. The country and its World Trade Organization (WTO) trading partners have scheduled a new round of negotiations for next month.

Vietnam is focusing on WTO entry in a bid to have quotas lifted on its clothing exports to the United States. Quotas for WTO members will be dropped at the end of 2004. However, access to the US market allowed garments to surpass oil as Vietnam's top export this year.

Vietnam applied for WTO entry in 1995. At the sixth round of talks in May, some WTO members said Vietnam had not offered enough market access or information. There was concern expressed about issues that ranged from trading rights for foreign companies in Vietnam to intellectual property rights, according to the WTO website.

Just as much as it want to develop economic relationships with the United States and within the WTO framework, Vietnam wants regional stability. Encouraging signs of these developing ties between the United States and Vietnam have long been in the air.

According to US ambassador to Vietnam, Raymond Burghardt, "The United States and Vietnam have seen an impressive growth in two-way trade, and the long-term outlook for relations between the two countries is 'almost positive'."

(Inter Press Service)
 
Nov 19, 2003



 

         
         
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