US-Vietnam ties beyond expectations

I am honoured to have returned as the US Ambassador to Vietnam, especially as we celebrate the 21st anniversary of the normalisation of diplomatic relations between our two countries. I first came to Vietnam as a young Foreign Service Officer in 1996, when I was fortunate to work for the first US Ambassador to Vietnam, Pete Peterson. I later served in Ho Chi Minh City where I helped establish the first US Consulate General.

Vietnam and the United States have come further in the past 21 years than anyone could possibly have imagined. The growth of our relationship – as evidenced in the 2013 Comprehensive Partnership – is a testament to the power of mutual respect and commitment to deepening bilateral ties.

There is much to be proud of when we look back over the past 21 years of our economic relationship. Since normalisation, our annual bilateral trade has grown from just $451 million to nearly $45.1 billion last year. Over the same period, the incomes of Vietnamese citizens have quadrupled.

The US-Vietnam Bilateral Trade Agreement – which came into force in 2001– marked a major milestone in our relationship, one that opened the door for greatly expanded market access and the development of the commercial sector.

Ambassador Ted Osius and Vietnamese students at a higher education fair

Vietnam became the 150th member of the World Trade Organization in 2007, and took another major step forward toward international economic integration and greater openness to new foreign investment.

A historic trip to the United States by Party General Secretary Nguyen Phu Trong deepened our partnership, and the conclusion of negotiations over the Trans-Pacific Partnership (TPP) trade agreement set us on a path for a prosperous shared future. This year promises to be equally significant, with a visit in May by President Barack Obama to Vietnam and the potential ratification of the TPP by both our legislatures.

We should take full advantage of our current momentum and build the foundation for a long and meaningful partnership. In Washington, General Secretary Trong said that building trust is key to deepening our friendship, and that we build trust by expanding our contacts and doing – together – things that matter. I couldn’t agree more.

The time is ripe to discuss some specific ways we can enhance trust and together make Vietnam stronger and more prosperous, enhance the region’s stability, and contribute globally to a cleaner, healthier future for the world.

A substantive visit by President Obama will shine a spotlight on today’s Vietnam: young, innovative, and an increasingly vital economic and diplomatic partner for the United States. At the 12th Party Congress, Vietnam’s leaders confirmed the nation’s commitment to enhanced international integration, including through free trade agreements.

President Obama’s visit will provide an opportunity for Vietnam to showcase this dynamism and engagement with the world. Young Vietnamese are Facebook savvy and keen for a US-style education, a growing middle class is increasing demand for goods and services, and Vietnam’s entrepreneurs are poised to help the nation prosper.

The president’s visit will also show how our two nations have moved past our painful history to forge a shared future that advances stability, prosperity, and people-to-people ties, making an example to the world of how former adversaries can become friends and partners.

Looking forward to the next 20 years, we must build upon this foundation and deepen our co-operation. To do so, we must make progress in five areas that span a broad spectrum of sectors and underpin the economic relationship. Advancing these five tracks advances the Comprehensive Partnership that President Obama and President Sang signed in 2013.

First, we will expand bilateral trade and investment. To that end, the TPP is a game changer. It is an ambitious, 21st-century trade agreement that the United States and Vietnam have signed with ten other Asia-Pacific countries including Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, and Singapore.

It will support new jobs and growth, both in Vietnam and in the United States. It includes strong labour standards and environmental commitments, new rules on state-owned enterprises, and a robust and balanced intellectual property rights framework.

The TPP lays the groundwork for Vietnam to develop a thriving digital economy. It also includes commitments on transparency and regulatory co-operation that make it easier for small- and medium-sized businesses to operate across the region.

All of these elements will strengthen Vietnam’s investment climate and allow Vietnam to better compete in the modern global economy. These positive changes to Vietnam’s economy and regulatory environment will in turn benefit all TPP partners, including the United States.

Speaking of investment, it is my sincere hope that the United States will become the number-one investor in Vietnam in the near future. The TPP has the power to attract significant new US investment to Vietnam.

We have seen steadily increasing interest in Vietnam from potential US investors across a variety of sectors. Many of our companies were already looking to invest in the Southeast Asia region, but have been pulled to Vietnam in part by the promise of the strong and stable investment climate that the TPP will bring.

Put simply, the TPP is the best tool for our countries to further build economic and strategic ties. Our governments have negotiated diligently for years, and our businesses, workers, and consumers stand to benefit enormously from the TPP.

Confident that the TPP will enter into force, US companies are already pursuing investment and trade opportunities in aviation, energy, “smart” cities, and healthcare. To facilitate these and future development projects, the US is bringing together private and public sector engagement to create jobs in both countries by building needed infrastructure in Vietnam.

In a separate initiative, direct commercial flights between the US and Vietnam will multiply the flow of tourism, commerce, and education exchange between the two countries. Vietnam is poised to achieve a “Category 1” safety rating from the US Federal Aviation Authority – a key prerequisite for direct flights.

The TPP shows the world that a less developed country can benefit from joining a high-standard trade agreement. Other nations in the region now want to join as well. The United States is committed to partnering with Vietnam as it prepares to carry out its TPP commitments. While these commitments – including labour rights – will be challenging, Vietnam has a strong track record, having fulfilled pledges made in the bilateral trade agreement with the US in 2000 and its 2007 entry into the World Trade Organization.

My second major goal, which is closely linked to the TPP, is to work with Vietnam to improve governance. Respect for rule of law and human rights are fundamental issues for the United States, and they are also intricately linked with our efforts to deepen our economic relationship.

As John Kerry said when he made his first visit here as Secretary of State, “Vietnam has proven that greater openness is a great catalyst for a stronger and more prosperous society, and today Vietnam has a historic opportunity to prove that even further”. Significant improvement in the protection and promotion of human rights is key to Vietnam reaching its fullest potential.

Third, I look forward to greater security co-operation, particularly on maritime issues. The United States has a long tradition of supporting freedom of navigation. Given Vietnam’s long coastline, this is a natural area for further engagement. In addition, our two countries should work together more closely in responding to humanitarian crises and disasters in order to provide relief, and to conduct search and rescue efforts.

Finally, the United States wants to assist Vietnam in its laudable commitment to provide peacekeeping personnel to UN missions. In all these ways and more, greater co-operation by our militaries means a more secure and peaceful region. And that leads to greater economic opportunities.

Fourth, Vietnam and the United States can benefit from our mutual interest in high quality education. Vietnam stands to greatly benefit from expanding its number of students who understand international markets and can help build a solid base of highly skilled workers.

Vietnam already sends close to 17,000 students to American colleges and universities. That figure is expected to rise even further, and the United States will keep investing in education right here in Vietnam, including through the establishment of the Fulbright University and encouraging the Vietnamese to improve English language education.

English language skills are the key to Vietnam competing successfully in the 21st century economy. This will be especially critical as Vietnamese industries move up the value chain and require increasing numbers of highly skilled workers and managers.

Finally, I want to build on our partnerships in the areas of the environment, science, technology and health, all of which are sectors that show great promise in Vietnam. Sustainable development, respect for the environment, wildlife conservation and careful management of natural resources are all key to creating conditions for economic growth.

We will visit every one of Vietnam’s 63 provinces to underline our commitment to Vietnam and its people. We will build on this strong foundation with the goal of helping Vietnam with its goal to be a strong, prosperous, and independent partner that respects human rights and the rule of law.

The US goal for the relationship is clear and consistent: we support a strong, prosperous, and independent Vietnam that promotes the rule of law and human rights. Each pillar of the Comprehensive Partnership reflects this broad commitment. It is our job, therefore, to sustain and nourish it. It’s not a foregone conclusion that we will succeed.

Vạn sự khởi đầu nan [Everything begins with difficulty]. Our countries have certainly faced difficulties before, but the lessons of the past can help guide us through any challenge and help us build a lasting partnership. Respecting and helping one another, we’ll get much, much farther. And, with hard work and a vision for the future, nothing is impossible in US-Vietnam relations.

It will be my pleasure to represent the United States as a reliable partner with such a vibrant and growing Vietnam that allows all its people to reach their fullest potential.