Office of the Press Secretary
(Ho Chi Minh City, Vietnam)
For Immediate Release November 19, 2000
PRESIDENT CLINTON: NEW OPPORTUNITIES FOR THE UNITED STATES & VIETNAM
THROUGH EXPANDING ECONOMIC TIES, TRADE, & INVESTMENT
President Clinton today will speak about the potential of trade and
investment liberalization and the free flow of information to empower
Vietnamese entrepreneurs, open new markets for U.S. investment and
exports, and build a closer relationship between the two nations in
speeches at the Vietnam International Trade Container Terminal and at
the U.S.-Vietnam Business Reception.
THE BILATERAL TRADE AGREEMENT (BTA) SIGNED ON JULY 13, 2000, EXPANDS THE
POTENTIAL FOR U.S. - VIETNAM COMMERCE. The BTA is a result of the
ongoing historic reconciliation between the United States and Vietnam
and an essential roadmap for Vietnam's integration into the global
economy. By normalizing trade relations and committing Vietnam to
sweeping economic reform in the areas of new market access for
agricultural and industrial goods, increased intellectual property
rights protections, access for services, transparency of laws, rules,
and regulations, and safeguards for foreign investments, it will open
markets and increase investment. U.S. total (two-way) goods trade with
Vietnam totaled $900 million in 1999 - up from $666 million in 1997.
Exports to Vietnam have already increased considerably from $4 million
in 1992 to $291 million in 1999 reflecting normalization of U.S. -
Vietnam relations and should continue to grow as tariff and non-tariff
barriers are lowered.
PRESIDENT CLINTON WILL HIGHLIGHT THE POTENTIAL OF A STRONGER U.S. -VIETNAM ECONOMIC RELATIONSHIP:
Vietnam International Trade Container Terminal (VICT): The VICT is a
joint venture between a Vietnamese state-owned company and a
multinational company on the Saigon River just south of downtown Ho Chi
Minh City. Completed in 1998 at a cost of $53 million, VICT is
Vietnam's newest container terminal and the only one with completely
U.S.-Vietnam Business Reception: President Clinton will also address
over 300 Vietnamese and U.S. business leaders at the U.S.-Vietnam
Business Reception at Ho Chi Minh City Hall on potential of increased
trade and investment.
PRESIDENT CLINTON'S VISIT BRINGS STRENGTHENED U.S.-VIETNAM ECONOMICTIES:
OPIC $200 Million Line Of Credit For Vietnam: OPIC will provide a
$200 million special line of credit to support U.S. investors seeking
financing for projects in Vietnam.
High-Level Economic Dialogue Between the United States & Vietnam: The
United States and Vietnam have agreed to enter into a high-level
dialogue on economic cooperation. The dialogue will be a forum for
exchanging views on economic, trade and labor issues, and coordinate
efforts to deepen the benefits of US-Vietnam engagement on these issues.
10 New Contracts/Letters Of Intent: During and around President
Clinton's visit to Vietnam, there have been several developments in
U.S.-Vietnam commerce -- contracts or letters of intent were signed for
10 sales of U.S. goods and services.
DETAILS OF SITES
Vietnam International Trade Container Terminal:
The President's visit will help demonstrate how foreign and domestic
investment are combining to modernize and industrialize Vietnam and
integrate it into the regional and global economy. VICT is a joint
venture between a Vietnamese state-owned company and a multinational
company with holdings that include American President Lines, owner of
one of the two U.S. flag cargo fleets. Completed in 1998 at a cost of
$53 million, VICT is Vietnam's newest container terminal and the only
one with completely computerized operations. The facility is providing
modern market-access with the basic infrastructure to move goods in and
out of a developing country efficiently. American President Lines
provides VICT's technical expertise, its senior managers and carries 50
percent of VICT's cargo of 5,000 containers per month. American
President Lines is a co-sponsor, along with Ford Motor Company, of the
"Helmets for Kids" initiative, part of the Safe Vietnam Program.
American President Lines is donating the transportation and logistics
support to bring motorcycle helmets by container to the Vietnam.
U.S.-Vietnam Business Reception
President Clinton will also address a gathering of over 300 Vietnamese
and U.S. business leaders at a gathering organized by the U.S. Vietnam
Trade Council, the U.S. ASEAN Business Council and the American Chamber
of Commerce at Ho Chi Minh City Hall. Representatives from U.S.
business organizations join Vietnamese businesspeople to participate in
discussions on the U.S.-Vietnam Bilateral Trade Agreement, integration
of Vietnam into the international economy, and challenges and
opportunities for doing business locally. Companies represented at the
Forum include: American International Group, Boeing, Caltex, Cargill,
Cisco, Citigroup, Coca Cola, Crane International, Daimler-Chrysler,
Federal Express, Ford, General Electric, General Motors, Motorola, New
York Life, Nike, Procter & Gamble, Oracle, UPS, United Technologies
Corporation, and Unocal.
DETAILS OF ANNOUNCEMENTS
OPIC $200 MILLION LINE OF CREDIT FOR VIETNAM: OPIC will provide a $200
million special line of credit for Vietnam to support U.S. investors
seeking financing for potential projects in Vietnam. Since reopening in
Vietnam, OPIC has committed $15 million in finance support to three
projects and has registrations for 29 projects seeking political risk
insurance. OPIC also supports four privately managed private equity
funds that are eligible to invest up to $640 million in projects in
HIGH-LEVEL ECONOMIC DIALOGUE BETWEEN THE UNITED STATES & VIETNAM: The
United States and Vietnam have agreed to enter into a high-level
dialogue on economic cooperation. The dialogue will provide a forum for
exchange of views on economic, trade, labor, science, and technology
issues and coordinate efforts to deepen the benefits of U.S,-Vietnam
engagement. This dialogue will help take stock of progress in the U.S.
Vietnam bilateral economic relationship, including the implementation
of the Bilateral Trade Agreement.
CONTRACTS/LETTERS OF INTENT SIGNED BETWEEN THE U.S. & VIETNAM AROUND
10 NEW CONTRACTS/LETTERS OF INTENT BETWEEN U.S. BUSINESSES & VIETNAM:
Developments in U.S.-Vietnam commerce surrounding President Clinton's
visit include contracts or letters of intent for 10 major sales of U.S.
goods and services to Vietnam.
Boeing 777 Aircraft: The Government of Vietnam and the Boeing Company
have signed a letter of intent to negotiate the procurement of three
Boeing 777-200ER widebody commercial aircraft.
Fiber Optic Cable Project: Corning International Corporation intends
to purchase Siemens AG's 50 percent interest in Fiber Optic Cable and
Accessories Limited, subject to the consent of joint venture owner,
Vietnam Post and Telecommunications. Corning will supply optical fiber
to the joint venture.
Marine Propulsion Engines and Gear Boxes: V-Trac Holdings, Inc., a
Vietnamese subsidiary and exclusive dealer of Caterpillar, Inc. will
sign an equipment supply contract with Ha Long Investment and
Development Company for the sale of 7 units of Caterpillar's Marine
Propulsion Engine, Model 3421B and gear boxes.
Sale of Ellicott Dredges: Ellicott International intends to sign two
contracts for dredge and associated support equipment with Vietnam
Waterway Construction Company, a state-owned enterprise.
Business to Business (B2B) e-Commerce Platform (MeetVietnam.com):
MeetChina.com and the Corporation for Financing and Promoting Technology
will sign an MOU for the creation of a joint venture company and
website, MeetVietnam.com. The project will provide Vietnamese exporters
with a "virtual storefront" to display goods/services and allow online
ordering/shopping opportunities for overseas buyers.
Vietnam Business to Business (B2B) Exchange: Oracle Corporation and
KHM, Inc., an international consulting firm, will sign an MOU with the
Peoples's Committee of Danang City on the creation of a B2B joint
venture that will contribute to the development of Vietnam's two-way
foreign trade. The U.S. export content include software, computer
hardware, networking and telecommunications equipment as well as
engineering, business and management expertise.
Beach Resort Investment: American Indochina Resorts, Ltd. intends to
sign a joint venture agreement with Danang Tourism and Service Company
that will enable them to obtain a license to pursue a beach-front resort
Eco-Tourism Resort: Treehouses of Hawaii, Inc. will sign a joint
development agreement with Huong Giang Tourist Company of Thu Thien-Hue
for engineering and technical support for the creation of an eco-resort
treehouse project designed to bring environmentally friendly tourism to
East-West Transportation Corridor Project: Stanley Consultants, Inc.
and the Louis Berger Group, Inc. along with Vietnam's Transport
Engineering Design Corporation, a subcontractor to the Ministry of
Transport, have been selected to provide detailed design and
construction supervision services for the Asian Development Bank
financed Vietnam East Transport Corridor in Quang Tri Provence.
TDA Grant for Vietnam Airlines IT Procurement Plan: Grant agreement
will provide Vietnam Airlines Corporation $475,000 to fund the
development of an Information Technology procurement plan that will
include assessing its technology needs, a strategy for implementation
and integration, and a financing structure for equipment.