The Vietnam-US Economic Co-operation Fair will be held at the Vietnam Exhibition and Fair Centre from November 6-9, 2006 on the occasion of a visit to Vietnam by US President George W.Bush when he attends the 2006 APEC summit and the fifth anniversary of the Vietnam-US Bilateral Trade Agreement (BTA). David Knapp, President of the American Chamber of Commerce in Vietnam (AmCham Vietnam), had an interviewed with the local media about the event.
What do you think about the development of the Vietnamese economy?
At present, Vietnam is one of the countries having the highest economic growth rate in Southeast Asia and a new emerging market with great potential in the world. In particular, in recent years, Vietnam has produced good performances of its liberalisation, gaining an impressive economic growth rate. Vietnam’s GDP has doubled over the past four years. The number of poor people has reduced by 50 per cent in the last 13 years.
In comparison with 2001, when the BTA took effect, Vietnam-US economic ties have seen a significant development. In 2005, two-way trade exchange turnover of Vietnam and US reached US$7.8 billion. The US is a huge market for all Vietnamese export items. Vietnam’s export to the US is seven fold higher than the US’s export to Vietnam. The American business community has always highly appreciated the Vietnamese market, especially dynamism and rapid development of the private sector.
Is this one of the reasons that more and more US enterprises will seek business enterprises at the Vietnam-US Economic and Trade Co-operation Fair?
US enterprises attend the fair in the spirit of support Vietnam’s integration into the international economy and welcome the APEC summit in Vietnam. At the same time, it will be an opportunity for enterprises of the two countries to introduce products and services, and exploit business co-operation potential. I believe there will be surprising results as Vietnam has attracted more investment capital from the US. The US is now the sixth largest foreign investor in Vietnam. Furthermore, the US is a potential export for Vietnamese goods, from high-end and popular goods, to meet the demand of various consumers.
It is expected that the fair will attract 250 US enterprises operating in Vietnam, local producers and manufacturers, financial organisations and localities with projects calling for foreign investment capital, as well as US groups and enterprises, which want to seek Vietnamese partners.
Products and groups of products to be displayed at the fair include processed food and drink, textiles and garments, footwear, woodwork, machines, equipment and accessories, transportation means, oil and gas, electronics, farm-produce and seafood, medicines, cosmetics, financial, banking and insurance services, tourism and hotel.
What are the weaknesses of Vietnamese enterprises and what should they do to overcome them?
Vietnamese enterprises’ marketing capability remains poor and their production scale is small and fragmented, so they have not met large orders from US enterprises yet. To reach a balance in two-way exchange trade, and create an equal and harmonious playground, I suppose that Vietnamese enterprises should diversify products, increasing the proportion of high value goods and developing new products. At the same time, Vietnamese enterprises should renew their management and stabilise quality of their products and services, cut prices of products, promote their co-operation in production and export to meet large orders, and boost market information.
Also, I would like to say that Vietnam should upgrade and perfect its infrastructure and boost the fight against corruption. This will help free foreign investors from worries and concerns when they do business in Vietnam.
Within the fair, a seminar entitled ‘Doing business with Vietnam in the WTO era’ will be held on November 7, 2006 by the Ministry of Trade and the US embassy in Vietnam, and a seminar lVietnam - benefits of being an APEC member’ will also be organised by the Vietnam Chamber of Commerce and Industry (VCCI) and the US Trade Association in Vietnam on November 7, 2006. The organisers of the fair on November 8, 2006 will present certificates of merit to Vietnamese and American enterprises which have made contributions to economic development in Vietnam and those enterprises which have beautiful pavilions in the fair. The event will be held with 7,000 square metres indoor display area and around 3,000 more square metres outdoor.
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