Business-in Asia:  Greetings on the New Year and even warmer greetings on the soon-to-be arrival of Tet.  On this auspicious occasion of the closing of the old lunar new year and the opening of the new year, we wanted to meet with you to discuss investment in Vietnam.  In this regard, I would like to request your assistance in answering five questions.  First, what was the biggest improvement in 2002 that you believe will make Vietnam a better site for foreign investment in 2003?

Consul General Hung:  The biggest achievement of Vietnam in 2002 was GDP with a growth rate of 7.24%, ranking second after China in Asia in terms of growth, despite a slowdown in the Global economy and the country’s severe natural calamities.  The Government of Vietnam has done a lot to make Vietnam a better site for foreign investors in 2003.

Business-in Asia: What sectors of the Vietnamese market in 2003 offer the most potential for profitable foreign investment and why?

Consul General Hung: Based on the achievements of successful foreign investors and Vietnamese exporters in 2002, I believe that export-oriented sectors such as garment, seafood, footwear, handicraft, and other labor-intensive industries, will continue to bring more profits for foreign investors in 2003. However, with the Vietnamese Government’s priorities given to many other sectors such as supporting industry, infrastructure, manufacturing and service, foreign investors have to think about these as well.

Business-in Asia:  Has the Bilateral Trade Agreement with the U.S. led to the increase in trade Vietnam expected?  And if not, why not?

Consul General Hung:  Indeed, the BTA with the U.S has not only opened the way for Vietnamese products entering U.S markets, but also brought the turn-over of trade between two countries to an unexpected level. Vietnamese exports to the American market have more than doubled from 1.052 billion in 2001 to 2.2 billion USD in 2002.

Business-in Asia: Could you give some examples of how import duties for U.S. made products will be reduced in 2003 under the Bilateral Trade Agreement?  Could you also give some examples of how Vietnam exports to the U.S. have increased during the same period?

Consul General Hung:  Since the BTA went into effect on December 10, 2001, Vietnam has committed MFN tariff treatment on all U.S. imports. It cut tariffs by 30 to 40% on a broad range of products of interest to U.S. exporters, including manufactured and agricultural products. Vietnamese products also received the same treatment from the U.S. The phase-in period is 3 years, so everything will be the same in 2003 regarding trade between the two countries.

Business-in Asia:  Currently much manufacturing is moving to China to take advantage of China’s low labor costs and other advantages.  If West Coast U.S. companies are interested in considering moving manufacturing facilities to Vietnam in 2003, what services can you recommend to help these investors learn more about Vietnam as an alternative investment location?

Consul General Hung:  The Vietnamese Government warmly welcomes all forms of foreign investment in Vietnam. If West Coast U.S companies consider moving manufacturing facilities from somewhere else to Vietnam, they will certainly receive the same treatment. For more information, please look at the following web site addresses: www.sokhdthanoi.gov.vn or www.dpi.hochiminhcity.gov.vn

Business-in Asia:  Thank you Consul General Hung and Happy Tet to you and your staff at the Consulate General in San Francisco and to all the Vietnamese people.