European Stars and Stripes (Newspaper) - January 10, 1994, Darmstadt, Hesse                                Ending Vietnam embargo More than a decision by Dorian Benkoil the associated press he dinner speech showed How far America and Vietnam have come and How far they have to go. When the highest ranking vietnamese official to visit the United states since the Vietnam War told 200 business executives it was time to put the past behind they stood and loudly applauded. Yet the executives hands Are tied by a . Trade embargo designed to Force Vietnam to be More helpful in accounting for american servicemen missing in the Vietnam War. Executives also face another obstacle the slice of . Public opinion that vehemently opposes Friendship with Vietnam. As first vice Premier Van Van Khai spoke that autumn evening at new York s Swanky Plaza hotel 50 protesters american  and vietnamese expatriates marched outside to denounce the Hanoi government. Whether american companies soon get a foothold in a vietnamese Economy rejuvenated by free Market reforms depends on How much the United states insists on using the embargo to solve the most painful legacy of the War. With the backing of some veterans groups Washington is insisting that before it drops the embargo Hanoi must hand Over All its information on american mias. Last week the United states launched its largest search Mission Ever for missing americans. More than 80 americans including four excavation teams plus their vietnamese counterparts Are to spend 23 Days searching for information. What they find could go a Long Way in ending the embargo. The Cost to . Business is substantial. European and asian companies Are building factories and snapping up contracts that could have gone to americans. While american corporations like ism Citibank and Caterpillar publicly fret War veterans and relatives of the missing agonize Over the More than 2,200 men left behind unaccounted for. Few people Are willing to guess when Washington might drop the embargo. Business had High Hopes it would be dropped on sept. 13, its yearly renewal Date. But president Clinton renewed the embargo although he did loosen it. Saying Vietnam had helped on Mia cases he freed american businesses to bid on projects there financed by International Aid organizations. Since then the number of . Companies with permission from Washington to look for but not act on opportunities in Vietnam has shot up from about 170 to almost 300. At least 15 american companies including ban America Caterpillar Citibank and general electric have opened offices in Hanoi and to Chi Minh City. Sen. Frank Murkowski a Alaska a member of both the Senate foreign affairs and veterans committees has drafted a Bill to drop the embargo. He and others on Capitol Hill feel economic Prosperity in Vietnam would help Foster what America tried to win in the War democracy and capitalism. The embargo May no longer have the desired leverage europeans and asians engineering firms air plane makers computer companies and More Are already Selling in Vietnam and a Bevy of american products from cosmetics to computers Are going into Wietman from third countries. Devastated after decades of War and deprivation Vietnam will spend billions of dollars to rebuild Over the next decade and those decisions Are being made right now said Virginia b. Foote director of the United states Vietnam Trade Council a Washington based business group. Ism and digital equipment have signed agreements to help Vietnam plan $300 million in information technology purchases Over  seven years. Be sees Between $300 million and $500 million in potential sales from Vietnam s Effort to rebuild its infrastructure things like Power plants Jet engines medical equipment and locomotives said George Jamison a company spokesman. Robert Laird Boeing s Asia Pacific sales director said the aircraft manufacturer could sell $3 billion to $5 billion Worth of planes to Vietnam if the embargo were lifted. That s quite a few jobs at Boeing said Laird who has made 14 trips to Vietnam in 20 months. Laird said increasingly impatient Vietnam airlines officials who wanted Boeing 737 passenger planes instead opted for five a-320s built by Boeing s european rival the Airbus industries consortium. He said that once Vietnam airlines pilots and mechanics received training from Airbus the airline would buy More of the european jets and it might be 10 years before Boeing got another Chance. Vietnam s Economy has been growing strongly since the communist leaders began jettisoning Market controls and Central planning in 1986. The government has approved $7 billion in foreign investment although Only $1.8 billion has been paid in so far. The major investors Are from Japan Taiwan Hong Kong South Korea and Australia. The world Bank and asian development Bank have loaned More than $600 million to Vietnam since october. They and other lenders Are expected to offer at least $3 billion Over the next three years. The Loans in turn should encourage private Banks. Even if the embargo is dropped however american business May not be satisfied. Importers will push for Vietnam to get most favored nation status which greatly reduces tariffs and other . Barriers to a nation s goods. Other companies will want . Government loan guarantees. But approval will not come easily. Bill Smith director of Public affairs for the veterans of foreign wars which has 2.2 million members said there is More at stake than dollars and cents. We have the integrity of dealing with our veterans and the integrity of our nation he said. It s not simply a business  Akk.  h above a worker helps Hanoi get in shape for an expected flood of new economic investment White a former Soldier plants crops for Sale in the capital City s free Market. Steps toward a free Market key developments in vietnamese government economic reforms 1987 official fixed prices raised closer to free Market prices. Rationing ended for Many commodities. Internal Trade liberalized. Rules set for foreign investment. 1988 Farmers Given user rights to land for at least 15 years allowed to improve land on their own Benefit from surplus production. State enterprises Given More autonomy. 1989 Price controls abolished except for housing Medicine electricity. State enterprises allowed to Export goods and Trade with foreign partners. Import Export quotas reduced. 1990 Privatere Nesses permitted. First Steps toward closing or merging Money losing state enterprises. 1991 foreign Exchange markets established to set currency rates. 1992 rules formalized allowing lease Sale merger or liquidation of state Enterprise operations. Tight fiscal and monetary measures sharply reduced inflation. New Constitution guarantees property rights. 1993 subsidized credit ended for state enterprises. Business taxes Cut. Farmers Given rights to Farmland for 20-50 years depending on use. The associated press 20 the stars and stripes a monday january 10, 1994