---------- Forwarded message ----------
Date: Tue, 11 Jul 1995
From: Voice of America
Subject: U-S / VIETNAM TRADE By ANDREW BAIRD/WASHINGTON

DATE=7/11/95
TYPE=CORRESPONDENT REPORT
NUMBER=2-181773
TITLE=U-S / VIETNAM TRADE
BYLINE=ANDREW BAIRD
DATELINE=WASHINGTON
CONTENT=
VOICED AT:

INTRO:  WITH PRESIDENT CLINTON'S DECISION TO PURSUE NORMAL
RELATIONS WITH VIETNAM, MANY BUSINESSMEN AND POLICYMAKERS BELIEVE
THAT TRADE AND INVESTMENT BETWEEN THE TWO NATIONS CAN NOW GROW
STEADILY.  V-O-A'S ANDREW BAIRD HAS THIS REPORT.

TEXT:  ONLY TWO YEARS AGO, WITH THE U-S TRADE EMBARGO STILL IN
EFFECT, U-S COMPANIES COULD ONLY LOOK ON AS BUSINESS
REPRESENTATIVES FROM OTHER NATIONS GOT FOOTHOLDS IN VIETNAM, BOTH
IN TERMS OF TRADE AND INVESTMENT.

THEN, IN FEBRUARY OF 1994, THE U-S EMBARGO WAS LIFTED.  U-S
COMPANIES, SUCH AS GENERAL ELECTRIC CORPORATION, COMPUTER-GIANT
I-B-M, AND HEAVY EQUIPMENT MAKER CATERPILLAR, INC., BEGAN TO
ESTABLISH CONTACTS AND MAKE DEALS OF THEIR OWN.  U-S BUSINESS
INVESTMENT IN VIETNAM NOW TOTALS ABOUT 235 MILLION DOLLARS, AND
THE VIETNAMESE GOVERNMENT HAS APPROVED ADDITIONAL INVESTMENT OF
APPROXIMATELY 300 MILLION DOLLARS.  U-S EXPORTS, LED BY AIRCRAFT
SALES, ARE JUMPING TOO, RISING TO 173 MILLION DOLLARS IN 1994
FROM SEVEN MILLION DOLLARS THE YEAR BEFORE.

U-S COMPANIES SEE OPPORTUNITIES IN VIETNAM FOR GOODS RANGING FROM
HEAVY EQUIPMENT TO CONSUMER ITEMS.  MANY COMPANIES ARE
CONSIDERING ESTABLISHING ASSEMBLY PLANTS TO SELL INTO EAST ASIAN,
EUROPEAN AND NORTH AMERICAN MARKETS.  FRANK LANVIN, EXECUTIVE
DIRECTOR OF THE ASIA-PACIFIC POLICY CENTER, SAYS U-S BANKS ARE
ALSO PRESENT TO HELP FINANCE THESE VENTURES.

                        // LANVIN ACT //

         I KNOW A FEW U-S COMMERCIAL BANKS ARE IN VIETNAM --
         CITIBANK IS IN VIETNAM.  CHEMICAL BANK IS OPENING UP,
         AND CHASE MANHATTAN IS OPENING UP.  SO AT LEAST THREE
         LARGE BANKS ARE OPENING UP, AND THEY ARE FOLLOWING THEIR
         CLIENTS.  YOU CAN'T VERY WELL GO TO A CITIBANK IN NEW
         YORK, IF YOU'RE A KODAK FILM, FOR EXAMPLE, AND WANT HELP
         WITH OPERATIONS IN VIETNAM AND  NOT  HAVE THEM FOLLOW
         YOU.

                          // END ACT //

VIETNAM'S ECONOMY HAS BEEN EXPANDING IN THE EIGHT-PERCENT RANGE
OVER THE LAST SEVERAL YEARS.  IN ADDITION, VIETNAM WILL SOON JOIN
A PREFERENTIAL TRADE AREA WITH COUNTRIES SUCH AS INDONESIA,
MALAYSIA, SINGAPORE, THE PHILIPPINES AND THAILAND.  ADHIP
(AHD'-HIP) CHAUDHURI (CHOW'-DUR-EE) SAYS THE APPEAL OF VIETNAM AS
AN EXPORT-PLATFORM FOR FOREIGN FIRMS LIES IN THE VIETNAMESE WORK
FORCE.

                       // CHAUDHURI ACT//

         THE VIETNAMESE WORKER WILL PROVIDE ONE OF THE BEST
         PRODUCTIVITY-WAGE RATIOS.  IN OTHER WORDS, WE COMPARE
         HOURLY WAGE RATES TO HOURLY PRODUCTION BY WORKER. AND
         FOR YEARS, IT WAS THE KOREAN WORKER AND THE TAIWANESE
         WORKER WHO HAD THE BEST RATIOS.  BUT WAGES IN THOSE TWO
         COUNTRIES ARE RISING, AND THAILAND AND THE PHILIPPINES
         HAVE STEPPED IN.  VIETNAM IS JUST BEHIND THEM.
         TEXTILES, LIGHT ELECTRONICS -- THAT WOULD BE THE WAY TO
         GO.  INSTEAD OF TRYING TO SELL THE VIETANMESE A LOT OF
         STUFF, THE BEST THING WOULD BE TO UTILIZE THE VIETNAMESE
         WORKER AND EXPORT OUT OF VIETNAM.

                          // END ACT //

ANALYSTS SAY THE NEXT STEP IN IMPROVING COMMERCIAL RELATIONS IS A
U-S / VIETNAMESE TRADE AGREEEMENT.  THE AGREEMENT WOULD CALL FOR
A LIBERALIZATION OF VIETNAM'S ECONOMIC REGULATIONS, WHILE
GRANTING VIETNAMESE GOODS "MOST FAVORED NATION" TREATMENT IN THE
UNITED STATES.  VIETNAM'S EXPORTS TO THE UNITED STATES TOTALED 51
MILLION DOLLARS LAST YEAR.  THE EUROPEAN UNION HAS ALREADY GIVEN
VIETNAM PREFERENTIAL ACCESS AND HAS PROVIDED FINANCIAL AND
TECHNICAL AID.  ONE HUNDRED U-S COMPANIES BELONGING TO THE
COALITION FOR U-S / VIETNAM TRADE SAY A PACT BETWEEN THE TWO
NATIONS COULD BE COMPLETED IN 12 MONTHS. (SIGNED)

NEB/AB/CF

11-Jul-95 12:29 PM EDT (1629 UTC)
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Source: Voice of America