HO CHI MINH CITY, December 12, 2014 -- Trade and investment have been powerful engines driving economic growth and reducing poverty in Vietnam. In the almost 20 years since the United States and Vietnam normalized diplomatic relations, U.S.-Vietnam two-way trade has grown from less than $500 million to over thirty-four billion dollars this year, in the process contributing to Vietnam’s dramatic reduction in poverty. Vietnam’s participation in the rules-based international trading system has also reinforced good governance and the rule of law.

Vietnam is continuing its international economic integration through its participation in a new generation of international trade agreements, including the recently finalized WTO Trade Facilitation Agreement (TFA) and the 12-country Trans-Pacific Partnership (TPP), now in its final stages of negotiation. Vietnam’s timely submission of its TFA Schedule A commitments in July on what it intends to implement in the first year the agreement is in force was an important indication of its recognition of the potential of improved trade facilitation to contribute to sustainable growth.  The Prime Minister’s leadership this year on the importance of customs and tax administrative streamlining through Resolution 19 is another indication that continuing to strengthen Vietnam’s international competitiveness is a high priority for the government.

In this context, I am pleased to be able to join you this evening to launch an innovative, new private sector initiative, the Vietnam Trade Facilitation Alliance, being established to support Vietnam’s trade facilitation related policy and institutional reform efforts.  The MOU we are signing this evening between USAID, AmCham and VCCI, along with the Alliance Charter being signed by many of you, its founding members, will begin what we hope will become a dynamic, inclusive public-private partnership with the General Department of Vietnam Customs and the numerous other Vietnamese agencies involved in trading across borders and participating in the the National Single Window that is being developed to facilitate this.   

I would like to announce that USAID has committed two and a half million dollars to support Vietnam’s improved trade facilitation through implementation of TFA and closely related expected TPP trade facilitation provisions. This Alliance will be a central part of this assistance with significant financial support to the Alliance, leveraging its private sector partners’ leadership, resources, know-how and commitment. The Alliance will work to enhance the customs-business partnership in Vietnam, developing formal consultative relationships between Customs, trade facilitation related agencies, and domestic and international businesses and their associations. Additionally, through its multi-stakeholder networks, the VFTA will improve information sharing on trade facilitation including participation in the annual Traders Satisfaction Survey implemented by VCCI in partnership with Customs, and sharing of private sector generated data on customs performance.

USAID’s support for this AmCham and VCCI lead Alliance represents a new model for delivery of our support for implementation of the TFA, in terms of being rooted in real, substantive engagement with the business community in order to inform the prioritization and implementation of reforms so that they deliver real development and business results. Trade facilitation is also a powerful tool for integrating small and medium enterprises into domestics and global value chains, which makes growth more inclusive. The VTFA will be an important voice for these SMEs that too often are not well represented in policy processes.

This private sector led approach to trade facilitation reform is not something we have done before and based on your pioneering experience with this approach, we intend to apply it more broadly to our trade programming in the many developing countries where we are supporting the implementation of the TFA.

Under USAID’s Country Development Cooperation Strategy for Vietnam (2014 - 2018), the USAID is working to strengthen the new U.S.-Vietnam Comprehensive Partnership and address Vietnam’s fundamental development challenges in order to support the country’s continued transformation into a responsible, more inclusive partner and a market-based economy. The USAID Governance for Inclusive Growth program is an important part of the United States’ commitment to further deepen already important U.S. economic, social and strategic ties with Vietnam.

Today marks the 1 year  anniversary of the  USAID’s Governance for Inclusive Growth program and recall what  Secretary Kerry said when he announced this new program during his trip to Vietnam at this time last year, “this is not aid. I want to make that clear. This is an investment, and it’s an investment in broad-based and sustainable growth.” I have no doubt that the VTFA is exactly the type of investment he had in mind when he said that.

Thank you very much.

(Note: The remarks are as prepared.)