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Vietnam
>> Regional Overview >> Vietnam Overview ACTIVITY DATA SHEET
PROGRAM: Vietnam
TITLE AND NUMBER: Enhanced Environment for Trade and Investment, 440-006
STATUS: Continuing
PLANNED FY 2001 OBLIGATION AND FUNDING SOURCE: $4,982,000 DA ($1,500,000 NOA and $3,482,000 FY 2000 carryover)
PROPOSED FY 2002 OBLIGATION AND FUNDING SOURCE: $4,600,000 DA
INITIAL OBLIGATION: FY 1997 ESTIMATED COMPLETION DATE: FY 2005Summary: To achieve sustainable growth domestically and compete internationally, Vietnam needs to move from a controlled, centrally-planned economy to one that permits freer and broader participation of the private sector. This process will require Vietnam to develop and implement a wide range of reforms that will permit greater participation in the world economy. This objective will enable USAID to respond as opportunities arise with the Government of Vietnam in the area of trade reform. This includes tariff and customs reforms, removal of non-tariff barriers, investment licensing and registration, intellectual property rights, market access, procurement reform, removal of anti-competitive policies, and improved accountability and transparency. The program specifically supports the implementation of the U.S.-Vietnam Bilateral Trade Agreement (BTA).
Key Results: With USAID-funded technical assistance, Vietnam developed a draft companies law designed to level the playing field for the private sector. This was incorporated into a broader enterprises law passed by the National Assembly in 1999. USAID-supported assistance to the Ministry of Trade contributed to acceleration of negotiations for the U.S.-Vietnam BTA, signed in July 2000.
Performance and Prospects: The trade and investment objective has two components: (a) trade and investment implementation support; and (b) university strengthening activities. In FY 2001, USAID plans to obligate approximately $3.48 million for trade and investment-related activities and $1.5 million for university strengthening.
The BTA is the most comprehensive bilateral trade agreement ever negotiated. It involves trade in goods and services as well as investment and intellectual property rights. Further, it requires Vietnam to undertake a broad range of reforms that, when implemented, will fundamentally change how Vietnam conducts business. These reforms include: substantial reductions in tariffs; transparency in government procurement; uniform implementation of standards, taxes, and dispute resolution; removal of quotas; market access rights; elimination of trade-related investment restrictions; and acceptance of World Trade Organization (WTO) rules on customs valuation, intellectual property rights, and trade in services.
USAID's trade policy activity under this objective provides technical assistance designed to give Vietnam a better understanding of the role that international standards and the rule of law play in underpinning a successful free market economy. The program familiarizes key Vietnamese officials with the policies, concepts, regulations, and benefits associated with commercial legal reform, particularly as they relate to trade in goods and services, investment, and intellectual property rights. The program helps Vietnamese government leaders understand the principles and commitments of international trade regimes and how existing laws and practices relate, and provides technical and substantive assistance in developing new laws and regulations that are compatible with international trade and investment norms and facilitate economic development.
USAID has provided technical assistance and training for various ministries and government offices responsible for Vietnam's economic integration. With ongoing support and participation from the private sector, the program provides comparative information on other U.S. trade and investment treaty partners and WTO members, particularly other transitional economies; facilitates strong awareness of detailed requirements for Vietnam's bilateral trade agreement with the United States and WTO accession; and identifies and builds capacity for legal reforms to ensure an effective transition for Vietnam's goals of international integration and a more market-based economy with effective regulation.
Presently, USAID is helping to identify and draft laws required to smoothly implement the agreement. USAID will continue to help Vietnam understand, develop, and implement the reforms required under the bilateral trade agreement, and will assist Vietnam in meeting the numerous requirements for eventual WTO membership.
USAID also supports efforts to strengthen higher education systems in Vietnam. For example, Boise State University has established a partnership with Hanoi's National Economic University to strengthen the latter's business school. The program trains Vietnam's future economic leaders and helps the National Economic University to offer high quality business education, training, and research on a sustainable basis. The University of Vermont is strengthening physician training in three Vietnamese hospitals.
Possible Adjustments to Plans: None.
Other Donor Programs: The World Bank policy agenda for economic growth focuses on: 1) creating a sound banking system; 2) reforming the state enterprise system; and 3) opening up international trade. The World Bank and the Asian Development Bank are active in modernizing the banking system and encouraging state enterprise reform. USAID's support for the BTA and related reforms complement these efforts by opening up international trade.
Principal Contractors, Grantees, or Agencies: The U.S.-Vietnam Trade Council; Boise State University; and the University of Vermont.
Selected Performance Measures:
Baseline
(1997)Actual
(1998)Actual
(1999)Actual
(2000)Target
(2001)Companies Law enacted No Yes Yes Yes Yes Trade agreement issues resolved 0 5 20 15 -- Agreement-in-principle for the U.S.-Vietnam BTA No No Yes Yes Yes U.S.-Vietnam BTA signed No No No Yes Yes Trade and investment procedures approved 0 0 0 8 10 Note: These indicators track with the process of completing and implementing the U.S.-Vietnam BTA by reaching agreement in principle, resolving remaining issues surrounding the Agreement, formal signing of the Agreement itself, and developing and obtaining approval of trade and investment procedures.
U.S. Financing
(In thousands of dollars)
Obligations Expenditures Unliquidated Through September 30, 1999 500 DA 500 DA 0 DA 0 CSD 0 CSD 0 CSD 1,239 ESF 318 ESF 921 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA Fiscal Year 2000 335 DA 217 DA 0 CSD 0 CSD 0 ESF 921 ESF 0 SEED 0 SEED 0 FSA 0 FSA 0 DFA 0 DFA Through September 30, 2000 835 DA 717 DA 118 DA 0 CSD 0 CSD 0 CSD 1,239 ESF 1,239 ESF 0 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA Prior Year Unobligated Funds 3,482 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA Planned Fiscal Year 2001 NOA 1,500 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA Total Planned Fiscal Year 2001 4,982 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA Future Obligations Est. Total Cost Proposed Fiscal Year 2002 NOA 4,600 DA 0 DA 10,417 DA 0 CSD 0 CSD 0 CSD 0 ESF 0 ESF 1,239 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA
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Last Updated on: May 29, 2002 |
