Visit offers new era for US ties

“State President Truong Tan Sang and President Obama have decided to establish a US-Vietnam comprehensive partnership, in order to develop an overaching framework to boost their relationship,” said a joint statement released after Sang’s July 24-26 official visit to the US.

The two leaders stressed the principles of the comprehensive partnership including respect for the United Nations Charter and international law as well as for each other’s political systems, independence, sovereignty and territorial integrity.

Under the statement, aimed to contribute to the peace, stability, co-operation and prosperity in each country, the comprehensive partnership “will create mechanisms for co-operation in the fields of politics and diplomacy, economics and trade, science and technology, education and training, the environment and health care, war legacy issues, defence and security, the protection and promotion of human rights, and culture, sport and tourism.”

Sang and Obama underscored that economic, trade and investment co-operation served as the foundation and driving force of the Vietnam-US comprehensive partnership. Obama noted Vietnam’s interest in pursuing market economy country status.

An array of co-operative agreements were signed during the visit,  including a memorandum of understanding (MoU) between Vietnam’s PetroVietnam and the US’ Export-Import Bank, under which the bank will commercially and financially support PetroVietnam in the oil and gas, and energy sector.

Other deals are a framework heads agreement on implementing the Ca Voi Xanh offshore oil and gas field between PetroVietnam and the US’ Exxon Mobil, a co-operation deal between Vietnam’s PetroVietnam Exploration Production Corporation and the US’ Murphy Oil Corporation, and an MoU between Metropolitan Life (Metlife) and state-owned bank BIDV.

The US Secretary of State John Kerry told Sang at a working lunch that relations between the two countries “have come a long way” since the nomalisation of Vietnam-US relations in July 1995, and “Vietnam has emerged as one of Asia’s great success stories.”

“Let me assure you, Mr. President, we will continue to grow our relationship in the years ahead,” Kerry said.

“In terms of foreign policy, Vietnam always attaches importance to the relations with the US, which we view as a leading partner,” Sang said. “I believe that our two countries are presented with wonderful opportunities to take bilateral relations into a new phase of development. The two sides need to continue deepening relationships in various areas and together with other partners to conclude the Trans-Pacific Partnership (TPP) agreement in the near future.” He said increasing numbers of well known US brands had entered Vietnam.

“You should select Vietnam for your long-term business and investment, especially in the fields of hi-tech, energy, manufacturing, the environment, information technology, agriculture and human resource development. This would help Vietnam reposition itself in the global value chain,” Sang told US companies and investors at the lunch.

“We have made major efforts to renovate and embrace international integration. We will implement stronger measures to ensure Vietnam remains an attractive destination for your investment. We will continue improving our legal framework and policies for a favourable and transparent business climate,” the state president said.

Since the Bilateral Trade Agreement between the two countries came into force in December 2001, two-way trade has grown from about $1 billion in 2001 to $24.5 billion last year, and over $11 billion in the first five months of this year. According to Vietnam’s Ministry of Planning and Investment, the US was currently Vietnam’s seventh largest foreign investor, with 658 investment projects having total registered capital of over $10.54 billion.

During this visit, Sang also met with the World Bank president Jim Yong Kim and the International Monetary Fund’s managing director Christine Lagarde. He asked them to provide further financial and technical support to Vietnam. Kim and Lagarde affirmed bigger support for the country.