U.S., Vietnam Celebrate 10th Anniversary of Bilateral Trade Agreement

On July 13, 2000, just five years after President Clinton announced the normalization of diplomatic relations with Vietnam, U.S. and Vietnamese negotiators signed a bilateral trade agreement (BTA) that now defines the strong economic ties between our two countries. During the ten years since the BTA entered into force on December 10, 2001, two-way trade between the U.S. and Vietnam jumped over 1,200 percent, from US$1.5 billion to over US$20 billion.  In addition to the trade and investment benefits, the BTA served as a “stepping stone” for Vietnam’s accession to the World Trade Organization in 2007. 

 “This is a good time for the United States and Vietnam.  Over the last 10 years we have made impressive advances in our bilateral relationship, particularly on the economic front,” said U.S. Ambassador to Vietnam David B. Shear. “Promoting even stronger economic ties between our two countries is among my top priorities as Ambassador.”

 

 Progress in the bilateral trade and investment relationship has coincided with a tremendous economic transformation in Vietnam that has helped to improve the lives of ordinary Vietnamese citizens.  Real income in Vietnam has grown an average of 7.2 percent per year, and GDP per capita has risen from US$413 in 2001 to US$1,300 in 2011.  Meanwhile Vietnam’s poverty rate has fallen from 58 percent in 1993 to 10.6 percent in 2010.

 

 Building on this accomplishment, the United States and Vietnam continue to work together to define rules for trade and investment that promote economic growth and opportunity in our economies.  Currently, the U.S. and Vietnam, together with seven other partners, are negotiating a Trans-Pacific Partnership (TPP) regional free trade agreement, which serves as a potential platform for economic integration across the Asia-Pacific region.  This integration will advance the economic interests for both the United States and Vietnam for many years to come, creating jobs and further strengthening our relationship.