10th Anniversary of Normalization

Vietnam Investment Review

"U.S. Ambassador hails diplomatic relations"

April 18, 2005

"I'm confident that the outcome of Vietnam-U.S. negotiations regarding the WTO will be equally positive," Michael Marine

The U.S. Ambassador to Vietnam Michael Marine last week praised the 10 years of normalized diplomatic relations between the two countries, which he said have blossomed beyond his expectations.

While trade experts consider the United States one of the most difficult negotiating partners, Marine expressed a different point of view regarding the ongoing bilateral negotiations for Vietnam accession to the World trade Organization (WTO).

The ambassador told local journalists in a meeting last week the U.S. "was not a tough negotiator," referring to discussions five years ago when Vietnam and the U.S. defined the Bilateral Trade Agreement (BTA).

"Many of the same concerns were being voiced then, but I think anyone from the Vietnamese side would agree that the outcome [of the BTA] was very positive for Vietnam," he said.

"And I'm confident that the outcome of Vietnam-U.S. negotiations regarding the WTO will be equally positive," he said, adding that American companies need a transparent legal system "to compete fairly" in Vietnam.

Prime Minister Phan Van Khai is planning a visit to the U.S. this year as the two countries finalize the second round of WTO negotiations and prepare for the next round.

Marine said he hoped Vietnamese Prime Minister's visit to the U.S. would bring greater understanding to both sides.

"Any kind of meeting between leaders of the two countries will improve each other's understanding of their positions and issues," Marine said.

This year will mark the 10th anniversary of the normalization of diplomatic relations between the two former foes with Marine saying that the two countries' ties have developed beyond expectations, with the possible exception of U.S. investment.

Despite strong growth in two-way trade, which increased six-fold in the last four years to $5.2 billion, U.S. investors only disbursed about $730 million into 215 projects in Vietnam by the end of 2004.

"But if you look at the entire relationship, at least from my perspective, I think it's moved faster and deeper in the last 10 years than I expected," Marine said.

The U.S. ambassador said the two countries has "excellent" cooperation models for the missing in actions (MIA) issue, and cultural and academic ties were growing "dramatically."

At the end of this month, a roundtable meeting of U.S. business will be held regarding the protection of industrial copyright.

Vietnam and the U.S. will also co-host a major regional medical conference next month in Hanoi, according to the ambassador.

Marine also agreed that there should be further studies on the Agent Orange to reach a scientific consensus to avoid situations that he fears could "block further growth in the relationship" between the two countries.

Marine said the U.S. government had provided $35 million in assistance to the disabled in Vietnam since 1991.

"We will continue to provide support for these people," he said.