US businesses approve PNTR for Vietnam
Vietnam Economic Times, Vietnam
VNECONOMY updated: 26/06/2014
Media has recently talked much about the PNTR and its significance. But many do not know what it is. Could you briefly introduce the PNTR?
Vietnam and the US normalized diplomatic relations in 1995 and signed the bilateral trade agreement in 2001. However, the US still applies Jackson Vanik amendment to Vietnam. The amendment hinders trade relations between the 2 countries.
The PNTR will help normalize trade relations between the 2 countries. If the PNTR is granted, there will be no need to extend waiver of Jackson Vanik every year.
The PNTR is required for effect of bilateral and multilateral agreements in Vietnam – US economic and trade relations.
How the US business community respond to grant of PNTR to Vietnam?
Before the final talk between Vietnam and the US on Vietnam joining the WTO took place, an alliance of US businesses was established to support Vietnam in accession to the trade body. The alliance then expanded and is now calling on the US Congress to grant PNTR to Vietnam. That is interests of US firms, especially those with investment in the fields of banking, insurance, telecom, etc in Vietnam.
However, minority of US businesses, especially textile and garment firms show disapproval for they are afraid that Vietnamese textile and garment goods would flood the US market like those from China did. However, Vietnam represents only 1.7% of the US market for textile and clothing.
Do you think the US will grant the PNTR to Vietnam soon?
I have met different groups in the US and I think that the US will grant the PNTR to Vietnam very soon, even before the Congress’s August holiday, if there is no more obstacles. However, the matter of trade is very complicated at the US Congress. The Democratic party is cautious in trade agreements while the Republic party is in favour of trade liberalization. The matter is that when grant of PNTR to Vietnam will be debated at both lower and upper houses for the US Congress is considering FTA with Oman and Peru. Moreover, congress vote will take place in November.
However, the visits by Chairman Dennis Hastert of the House of Representatives and President George W. Bush will push up the progress.
What Vietnam should do now to get the PNTR?
I think we should have right awareness of situation and right lobby plan and message as well.
Source: Thá»i báo Kinh tế Việt Nam
