Report on the Aerospace Trade Mission to Vietnam

by Linda Conlin
Assistant Secretary of Commerce for Trade Development

It was a great pleasure to lead the aerospace executive trade mission to Vietnam in August, the first U.S. government commercial trade mission to Vietnam since the signing of the U.S.-Vietnam Bilateral Trade Agreement (BTA). The trade opportunities in Vietnam’s aerospace industry are significant. The Vietnamese government plans to invest $4.6 billion by 2011 to upgrade 18 of its airports and build one new international airport. Vietnam’s airlines plan to expand their fleet of aircraft over the next few years to meet additional demand, both domestic and international. This mission paved the way for U.S. aerospace companies to expand their presence in Vietnam.

Much of this trip’s success can be credited to the 13 U.S. aerospace companies that participated. Many of the larger aerospace companies, including Boeing, Pratt & Whitney, and Raytheon, strengthened already existing relationships in Vietnam. The LPA Group, an airport development consulting firm from Columbia, South Carolina, reported that it had laid the groundwork for a joint venture partnership. Many of the small to medium-sized companies, including Uplift, Inc., which specializes in aviation maintenance tooling, established new relationships and will return to pursue opportunities.

As U.S. companies realized Vietnam’s commercial potential during this mission, a much broader purpose was also served. Great strides were made in implementing the tenets of the BTA. That this mission’s focus was on aerospace also addressed the BTA’s goal of a diversified U.S.-Vietnam commercial relationship. Additionally, the focus on aerospace was appropriate given that this was the underlying theme the day the BTA took effect, December 10, 2001. In fact, it was on this same day that Commerce Secretary Evans hosted the historic signing of Vietnam Airlines’ purchase of four Boeing 777 aircraft.

Strengthening our commercial ties with Vietnam will bring enormous benefit to both countries. More trade means more jobs, which will in turn lead to greater economic prosperity and a better quality of life on both sides of the Pacific. Working toward developing new trade partnerships with countries around the globe leads to worldwide economic and social progress.

As in most of Asia, it is clear that the key to unlocking Vietnam’s market is through the development and nurturing of relationships. I believe our efforts went far in positively shaping the views of Vietnamese officials with whom we met and in reassuring them that the United States is committed to implementing the BTA and strengthening our overall bilateral relationship. Looking to the future, it is interesting to note that two-thirds of Vietnam’s population is under the age of 25, and the enthusiasm and eagerness of the young people I met was energizing. I am proud of the personal connections that U.S. aerospace companies built during this mission, and I am confident that continued efforts will lead to many commercial opportunities for both U.S. and Vietnamese companies well into the future.