But excitement is building in some sectors. U.S. banks, currently allowed only limited operations in Vietnam, are especially bullish. Companies using Vietnam as an export base also are elated. Nike Inc. Through its Taiwanese and Korean subcontractors, Nike is the largest foreign employer in Vietnam, with 43,000 workers. Nike and other retailers for the first time would be able to sell directly to Vietnamese consumers.
Economic pressures are behind Hanoi's haste to make a deal.
The Asia crisis has caused investment from companies in recession-ridden Hong Kong, Singapore, and South Korea to plunge. The U.S. trade pact also could add momentum to economic reform. In the early 1990s, the government made bold promises to reduce the state sector and liberalize the financial system. But bureaucrats stalled most reforms. As a result, only one-third of Vietnam's 5,800 state enterprises are profitable.