International public on US congress approval of PNTR with Vietnam

The US Congress approved Permanent Normal Trade Relations (PNTR) with Vietnam on December 9. Speaking in Washington on Saturday, US President George W. Bush described the development as a significant step forward in the process of normalizing relations with Vietnam that will benefit both nations.

US businesses will also be able to take full advantage of Vietnams accession to the World Trade Organization later this month, when the country will begin reducing tariff rates and opening up new markets to foreign investors. This designation will advance our trade and investment relations with Vietnam and ensure that the United States shares in the economic benefits of Vietnams entry to the WTO.

Meanwhile, Chairman of the American Chamber of Commerce (AmCham) David Knapp said, "Vietnams WTO accession will bring AmCham members more opportunities in both the goods and services sectors". The country’s 84 million people will benefit from the better choice, higher quality, and lower prices that will result from increased openness and competition under WTO rules."

Mr Knapp said US businesses only invest in economies which have open and good polices governed by laws. He said US investment in Vietnam will increase sharply after Vietnam joins the WTO as US investors believe Vietnam will implement commitments under WTO rules. Besides, its GDP growth rate, abundant labour force and political stability are important factors which attract US investors.

Almost all major international news agencies covered the event on December 9-10.

According to the French Press Agency (AFP), if PNTR is not approved, US businesses will not be able to take full advantage of Vietnam’s entry into the WTO such as reduction in tariffs as well as other economic benefits that Vietnam agrees to grant to WTO members.

According to the British Broadcasting Corporation (BBC) on December 9, the passage of the bill will make a historic turning point, removing trade barriers between the US and Vietnam.

According to the Calitoday newspaper, Vietnam-US two-way trade in 2005 reached US$6.5 billion and increased by US$8 billion in 2006. After the US Congress approved Vietnam PNTR legislation, the two-way trade is expected to reach US$17.5 billion by 2010.

(Source: VOV)