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The Vietnam News

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Senior US official visits Vietnam hot on heels of landmark trade deal

HANOI - US Deputy Commerce Secretary Robert Mallett arrived here Tuesday for three days of talks with Vietnamese officials and business people hot on the heels of last month's landmark trade accord between the two former foes. Mallett, who is the most senior US trade official ever to visit Hanoi, warned against too much euphoria over the agreement's signing, saying the key test would be its implementation.

"The Bilateral Trade Agreement signed just over a month ago in Washington is a significant step in the historic reconciliation between the United States and Vietnam, and in the normalisation of bilateral trade and commercial relations," he said. "But while the signing of this agreement was a significant step, the most important steps are yet to come. Implementation of the measures contained in the BTA represent Vietnam's best hope for a vigorous and prosperous economy." Under the deal, which still has to be ratified by legislators in both countries, Vietnam undertook to gradually open up its economy in accordance with World Trade Organization rules in exchange for a slashing of tariffs on its exports to the United States. Mallett said he looked forward to discussing with Vietnamese officials how to develop the potential that existed for trade between the two countries.

"Trade has grown since the normalization of relations (in 1995) -- US exports to Vietnam totalled 291 million dollars last year and two-way trade was just under 900 million dollars. These numbers, however, pale in terms of the potential that exists," he said. "My delegation and I look forward to discussing with our Vietnamese hosts ways that we can turn that potential into reality." Footwear; coffee, tea and spices; fish and seafood; and oil were Vietnam's four main exports to the United States last year. Nuclear reactors and parts, fertilizers, electrical machinery, and footwear were the main US exports.

Mallett was due to hold talks with First Deputy Prime Minister Nguyen Tan Dung as well Trade Minister Vu Khoan and Planning and Investment Minister Tran Xuan Gia. He was also due to attend a luncheon hosted by the American Chamber of Commerce, but the whole of his first day's programme was closed to the press. On Wednesday he is due to meet Industry Minister Dang Vu Chu and Finance Minister Nguyen Sinh Hung before addressing Vietnamese businessmen at a question and answer session to be hosted by the Vietnam Chamber of Commerce and Industry. He will then travel to the commercial capital of Ho Chi Minh City where he is to visit Vietnam's fledgling stock exchange.

The opening of the bourse and a short-term capital market here in Hanoi came within days of the signing of the US trade agreement and the trio of reforms gave a major boost to investor confidence in communist Vietnam's seriousness about opening up to the world market. Vietnam's ambassador to the United States Le Van Bang hailed the trade agreement as a qualitative step foward. "This is the second reform in Vietnam," he told a business forum in Washington earlier this month.

Agence France Presse - August 22, 2000.