Historic visit lifts US-Vietnam ties to the next level

The Vietnam Airlines-Boeing deal will contribute to propelling bilateral trade and investment

They include agreements on double taxation avoidance and agricultural cooperation between the two nations, as well as a memorandum of understanding (MoU) on United Nations peacekeeping missions.

A World Bank-funded $100 million project for Vietnam’s poverty reduction in the northern region, and a $124 million project to develop a “green traffic system” in Ho Chi Minh City will be signed on this occasion.

Vietnam’s Civil Aviation Authority will sign a cooperation deal with a US partner, while PetroVietnam and Murphy Oil will also clinch an MoU on oil and gas co-operation.

Vietjet Air and General Electric will also approve a contract on buying aircraft engines, while Vietnam Airlines and Boeing will ink a letter of intent on the purchase of 787-9 Dreamliner aircrafts.

The first-ever visit by a Vietnamese Communist Party general secretary was proposed amid the two former enemies celebrating their 20th anniversary of diplomatic normalisation, and 40 years since the end of the war.

Trong is scheduled to hold bilateral talks with US President Barack Obama at the White House, and meet with Secretary of State John Kerry, Trade Representative Michael Froman, and Senator John McCain. He will also meet with the UN Secretary General Ban Ki-moon and former President Bill Clinton.

Trong will attend a dialogue with US leading groups and a reception with over 200 American companies. He will also address the Centre for Security and International Studies regarding Vietnam-US relations, and share his views on international and regional issues of concern, in particular the East Sea issue.

US Ambassador to Vietnam Ted Osius underlined the importance of Trong’s landmark visit.

“We are pleased that Party General Secretary Nguyen Phu Trong will visit the United States. We are confident his visit will help move the comprehensive partnership forward. We expect the pace of high-level US visitors to Vietnam to continue as well, as these visits are also a way to keep up an open and frank dialogue about all the issues we face.”

He said that annual trade volume between the two nations had increased from less than $500 million to $35 billion during 20 years of normalised relations, although the growth in US imports of Vietnamese goods has been faster than the growth of US exports to Vietnam.

In this year’s first half, Vietnam’s exports to the US grew 18.6 per cent on year to $15.7 billion, while Vietnam’s imports from the US rose 19.8 per cent on year to $3.8 billion.

The US is currently Vietnam’s seventh biggest investor, with 748 valid investment projects registered with over $11 billion.

Vietnamese Deputy Minister of Foreign Affairs Ha Kim Ngoc said the four Vietnam-US joint statements of 2005, 2007, 2008 and 2013 “have confirmed the two countries’ common viewpoints on constructive and multi-faceted co-operation, which was based on respect, equal footing and mutual interests.”

Since 2013, the two governments have exchanged a number of high-level visits, with former President Bill Clinton visiting Hanoi last week, US Defense Secretary Ashton Carter visiting Hanoi in late May 2015, Vietnam’s National Assembly Deputy Chairwoman Nguyen Thi Kim Ngan paying a working visit to the US in April 2015, Senators John McCain and Sheldon Whitehouse visiting Vietnam in September 2014, and US Secretary of State John Kerry visiting Vietnam in December 2013.