Essay - Vietnam and U.s. Economic Relations Vietnam's Economy Stagnated for 10...

Vietnam and U.S. Economic Relations

***** economy stagnated for 10 years after the war ended in 1975. In 1986, the Sixth Party Congress approved a broad economic reform package called 'Doi Moi' or renovation that was geared to dramatically alter and improve Vietnam's bus*****ess climate, both at home and abroad.

Vietnam became one of ***** fastest-growing economies in the world, averaging around 8 percent annual GDP growth from 1990 to 1997." (Bureau ***** Public Affairs)

***** inflation rate stood at an annual rate of more than 300 percent in 1987 and fell below 4 percent in 1997. Investments and domestic sav*****gs grew and agricultural production doubled which led to the country being the second largest exporter ***** rice in the world.

Throughout ***** 1990s, Vietnam began to recognize that global economic interdependence was key to growth and stability. The country stepped up its efforts to attract foreign capital from the West and normalize relations with ***** world financial system. In the mid-1990s, the United States lifted the veto on multilateral loans to Vietnam. Vietnam in turn, ***** a member of the World B*****nk, the *****ternational Monetary Fund ***** the Asian Development Bank.

Virginia Foote, president ***** the U.S.-***** Trade Council which represents American companies trying ***** do business in Vietnam, spoke about the state of ***** between the U.S. and Vietnam in 1997. At that time, ***** said American *****es were "looking for economic normalization and ***** support system of the U.S. government on full trade relati*****s." (May 15, 1997) American ***** had excellent reputations in Vietnam ***** the Vietnamese were ***** to American management skills, capital and technology in order to bolster their own ***** viability. The economic system the ***** government had been following from 1975 ***** 1985 did not work. ***** ***** was ***** developing technologically ***** it was not getting richer. Production in the *****-run manufacturing sector was down.

***** the new process of doi moi, the economic ***** policy was structured to build a free market society piece by piece. "The development of a private sector in Vietnam will be important for ***** companies. *****re are still restrictions on who can ***** and how to *****vest. There is the problem of bureaucracy, which is very much **********. But there's also the problem that they're in transiti*****... Every country has made this transition in quite different ways ***** they are ***** seek*****g out what models, what transitions, and in ***** order should they and how they should proceed." (Foote 1997)

On July 11, 1995, President Bill Clin*****n announced the formal normalization of diplomatic relations with Vietnam, after 20 years ***** severed ties. This announcement came after several years of steady diplomatic talks between the two countries. In ***** 1993, ***** U.S. dropped its objections to bilateral and multilateral lending to Vietnam. Seven months later, Clin*****n removed the trade embargo on Vietnam.

***** *****, the ***** States was committed to full normalization of diplomatic, political and ***** relations with Vietnam. Then Secretary ***** State Madeleine Albright visited