The United States and Vietnam agreed Tuesday to launch talks for a bilateral investment treaty, as companies from each country signed several deals during a visit by Vietnamese Premier Nguyen Tan Dung.
The investment accord "will build on the already strong economic ties between the United States and Vietnam, one of the fastest-growing markets for US exports," said U.S. Trade Representative Susan Schwab.
The deal will be aimed at giving investors in Vietnam key legal protections and enhanced market access, with "important direct and collateral benefits for US exporters and consumers alike," she said.
The two former enemies normalized trade relations in 2001. Total trade between them rose to $12.5 billion in 2007, up 30% from a year earlier.
Dung also met with President George W. Bush, and presided with Commerce Secretary Carlos Gutierrez over the signing of contracts and other agreements.
They would provide "expanded access for U.S. companies to Vietnam's growing market," the Commerce Department said.
A memorandum of cooperation was also signed between Vietrade, the Vietnam trade promotion agency, and the U.S. Foreign and Commercial Service.
The Commerce Department said the business deals support jobs in the United States and further increase U.S. exports to Vietnam, which grew almost 73% in 2007, and more than 133% in April from a year ago.
Signing contracts with their Vietnamese counterparts were aluminum giant Alcoa Inc. (AA), electronic communications manufacturer Motorola Inc. (MOT) and travel technology firm Sabre Holdings Corp. (TSG).
Alcoa signed a cooperation agreement with Vietnam National Coal-Mineral Industries Group on aluminum industry development.
Motorola and Vietnam Posts and Telecommunications Group signed contracts worth $28 million for the expansion of a GSM mobile phone network across 12 northern provinces of Vietnam.
Sabre Holdings and Vietnam Airlines Corporation signed a definitive memorandum of understanding for the purchase of an Internet-booking engine and e-commerce solution and a passenger services system.
Two U.S. companies received investment licenses for joint ventures: SSA Marine, for container terminals, and Gannon International, for a brewery and bottling facility.
Source: AFP
