US advanced technology enriches competitiveness (VOV) - Two decades have passed since Vietnam and the US normalised their diplomatic ties. The past decades have witnessed great strides forward and important improvements in cooperative ties between the two countries. Joint endeavours over the past twenty years have laid a solid foundation for further expansion of bilateral ties and they have developed based on the principle of mutual respect, equality and mutually beneficial cooperation. Economics and trade is the field that has witnessed the most rapid and impressive progress in Vietnam-US ties. The coming into force of the Bilateral Trade Agreement in 2001 opened up a host of opportunities for businesses in the two countries. The two-way trade value jumped from nearly US$1.4 billion in 2001 to US$34 billion in 2014, significantly contributing to poverty reduction in Vietnam. Most significantly, the US has been instrumental in assisting Vietnam improve its national competitiveness. Most notably, the Vietnam Trade Facilitation Alliance (VTFA) has positively affected Vietnam’s national competitiveness and is the result of a memorandum of understanding between Vietnam and the United States Agency for International Development (USAID), the American Chamber of Commerce in Vietnam (AmCham) and the Vietnam Chamber of Commerce and Industry (VCCI). The alliance aims to provide policy and technical assistance to the General Department of Vietnam Customs (GDVC) and relevant trade promotion agencies to advance Vietnam’s competitiveness. Trade facilitation is a powerful tool for integrating small and medium enterprises (SMEs) into domestic and global value chains, which makes growth more inclusive, says USAID’s Acting Assistant Administrator for Asia Anne Aarnes. The VTFA will be an important voice for these SMEs that often are not well represented in policymaking process. A number of USAID programmes, including the Provincial Competitiveness Index (PCI), highlight the importance of SMEs, including women-led enterprises, to Vietnam’s growth and the value of involving business in policymaking. The alliance will support implementing the Trade Facilitation Agreement (TFA) in Vietnam, as well as other free trade agreements such as the Trans-Pacific Partnership (TPP). It also aims to improve competitiveness of domestic and foreign firms in Vietnam through a more transparent business environment. USAID is committed to provide US$2.5 million for Vietnam to enhance trade facilitation through implementing the TFA and TPP. The VTFA will be the key beneficiary, who will receive technical and financial assistance to improve its leadership, resources, knowledge and commitments of private sector in the alliance. The focus on the cooperation is to help Vietnam fulfill its target set in Resolution No. 19/NQ-CP to better its cross-border trading performance by significantly reducing import-export time and cost to the regional average level. Through its member networks, the VFTA will share information on trade facilitation including taking part in the annual Traders Satisfaction Survey conducted by VCCI and the GDVC and sharing data on customs performance collected from the private sector. USAID has worked closely with the Vietnamese government and business associations to develop and implement effective trade facilitation assistance to enable Vietnam to meet the commitments in the TFA and prepare for implementing the TPP. USAID support for the VTFA will enable Vietnam to build a sustainable and open public-private partnership to facilitate trade, helping reducing poverty and promoting inclusive growth. Experts speak highly of the establishment of the VTFA, saying that the alliance looks forward to targets for supporting Vietnam fulfilling international commitments on trade and investment to accelerate the global integration process with a focus on TFA and TPP. VTFA assists improving competitiveness of domestic and foreign businesses in Vietnam through stable and transparent business environment, facilitating their performance and reducing import-export procedure making time from current 21 days to 14 days late 2015. Despite difficulties ahead, the developments over the past 20 years demonstrate that Vietnam-US relations should be further expanded and strengthened not only in the interest of the two peoples but also for the sake of peace, cooperation and development in the region and the world. VOV