To begin, the developing countries that have achieved sustained growth are the ones that have fully unleashed the energy of market-based economies. Those of you here today who are businesspeople working in Vietnam know better than anyone the numerous obstacles to business that exist here. Vietnam would make great strides in improving its economy and conditions for local and foreign investors by reducing tariffs, eliminating import licenses and simplifying government approvals, updating areas of commercial law such as intellectual property rights and land laws to be consistent with international practices, and increasing bureaucratic and legal transparency. For example, the process to receive governmental approval for private sector ventures is cumbersome and complicated, requiring far more licenses and permits than other countries in the region. One of the central features of today's global economy is the mobility of capital.
Investors have many options of where to go with their investments.
I worked for a Wall Street investment firm for 26 years and I often helped companies decide when and where to invest. For Vietnam to compete effectively for its share of global investment, it must address those issues of concern to international investors. Further progress in reform will also open the door for closer economic ties between our two governments. We have presented a draft of the bilateral trade agreement and will begin another round of negotiations later this month. Once the bilateral trade agreement, is secured, satisfaction of the provisions of the Jackson-Vanik amendment would make Vietnam eligible for Most Favored Nation trading status.