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All sources are for BTA implementation

An interview with Chairman Walter Blocker of the American Chamber of Commerce in Vietnam (AmCham Vietnam) about the implementation of the bilateral trade agreement (BTA) and Vietnam's entry into the World Trade Organization (WTO)

Please give your remarks on the implementation pace of the BTA.
At this stage, it's difficult to gauge exactly how the implementation process has been proceeding. My feeling is that in some areas, it is proceeding very, very well, and in other areas, it is falling short. We believe the next twelve months will be very critical months as information becomes easier to receive and the implementation process is easier to measure.

Do you think that the Vietnamese Government has made adequate efforts to realize the BTA?
It's perfectly clear to me that Vietnam has taken the implementation of the BTA very seriously. It's mobilizing all sources available to ensure the timely and satisfactory implementation of the agreement. And the implementation of the BTA will go a long way to the WTO membership because Vietnam has made it clear that it wishes to join the WTO and take necessary steps to join the WTO. The government has realized that it's the country's interest to first implement the performance necessary for the trade agreement with the U.S. However, we have to understand that there are parts of the implementation process that require new training, new personnel, new divisions within the government, and this will take time to set up. I encourage the Vietnamese Government to look at these areas now that need refinement and not wait to set them up. I also encourage the U.S. side to appreciate the fact that many of the implement areas that require monitoring did not exist in this country before, and that it will take time for the Vietnamese Government to get the right people in those positions.

Could you elaborate on the areas that require monitoring?
To give an example, [they are] those issues surrounding intellectual property rights, for instance setting up a division to investigate potential copyright manufacturing errors, understanding of the legal process, appropriate fines for IPR (Intellectual Property Right) violations, and violation handling during the court of law. It's a very intricate process and these systems must be put in place not just to protect American or foreign copyright, but Vietnamese copyright as well. Vietnam has proved that it is capable of producing world-class products and services, and as Vietnam grows and prospers there will be more of those world-class products and services that need to be protected under the same laws. I believe Vietnam knows that it is its best interest that IPR should be protected.

Obviously, IPR is a focus in the BTA implementation process. Several foreign investors in Vietnam, Honda for instance, have launched campaigns to enforce their copyright here. Will the U.S. side have the same activities?
Firstly, laws concerning IPR must be crystal clear and transparent in order for us to have progress. Ultimately, that is the most important part of the foundation. Secondly, I know that operating in a country such as Vietnam, at this stage, there must be corporate responsibility for helping Vietnam implement all the laws that have been established. When I say "help implement" I mean helping establish, as Honda has done in many other countries, an education process to the consumers for your brands and other brands so that the consumer begins the discrimination process of determining what's real and what's not. We must work together as a community to solve this very big problem. The third point is that in the past, and I'm certain in the future, the U.S. embassy and the consulate have provided resources in one way or another to support activities such as these to help improve the communication process.

How will a successful BTA implementation impact Vietnam's WTO accession?
I would say the implementation of the BTA is critical for Vietnam to be accepted into the WTO. Although the two are not officially connected, the WTO will look closely on how Vietnam handles the bilateral trade agreement and what progress has been made in considering Vietnam's WTO membership. It's clear that Vietnam is serious about the WTO and has stated an ambitious goal, a membership in 2005. I applaud this goal. But much work has to be done to ensure that to happen. WTO accession will allow Vietnam to be an equal partner in trade disputes with countries around the world and exports are critical for the development of the country. To receive the WTO membership, Vietnam must show the WTO that it's capable of performing. The BTA will be the biggest test Vietnam has and the biggest reason for Vietnam to claim membership status when the time comes.

Is 2005 a realistic timing for Vietnam's entry into the WTO?
That timing is very ambitious. I don't want to predict when Vietnam will join the WTO, but AmCham supports Vietnam's goal of 2005 membership, and we will do everything in our power to ensure the goals of the Vietnamese Government for the WTO and for the BTA are met. Do you think Vietnam's preparations for the WTO admission are effective? I must say Vietnam's ability to implement the BTA that goes a long way towards WTO membership must come from the strength of the leadership of Vietnam. No matter how strong the American business community or foreign investors support Vietnam's WTO is, Vietnam must do it.

What can Vietnam do to facilitate U.S. investment in the country?
Clearly, one of the biggest issues for potential American investors to come to Vietnam is transparency. The faster Vietnam can implement the cornerstone of the trade agreement, the faster investment will come in. We've already seen quite a large increase in American investment in Vietnam just this year. I think more investors will come when IPR issues are continued to be resolved, and infrastructure developed in this country. For example, I'm very interested in the high-tech park being developed in District 9, HCM City. As this is a fantastic project, I encourage funding to be made available for this project to get started right away. I also encourage the master plan to be developed and the city to develop the first part of it so that infrastructure is made available now. Instead of telling potential investors that we are going to build it, we'd say a section of it-water supply, power, or telecom lines-is being built. We don't have to do all today but we can get it started with the first phase. AmCham will do everything it can to help fill that park up. We will talk to everyone and push them to the great points why they should invest here. But the infrastructure must be in place for Vietnam to compete with other nations in this regard.

By Son Tung - The Saigon Times Weekly - November 16, 2002.