Statement of Trung Trinh, Executive Director,
The Vietnamese American Business Council

Testimony Before the Subcommittee on Trade
of the House Committee on Ways and Means

Hearing on United States-Vietnam Trade Relations

June 17, 1999

Good morning. My name is Trung Trinh. I am the Executive Director of the Vietnamese American Business Council (VABC). Thank you for giving me this opportunity to speak with you on US Vietnam trade relations.

VABC was established in 1998 to provide its members with networking opportunities in order to develop businesses in Vietnam. VABC members are small and medium-sized American companies many of which have been doing business in Vietnam since the lifting of the US trade embargo in 1994. A list of the member companies and individuals of VABC has been provided with our written statement.

I came to this country in 1981 as a refugee. I settled in Northern Virginia with my family and worked for the Fairfax County government for 8 years as a Human Resource Specialist and then for various organizations and companies before starting my own business in 1990 .

As a Vietnamese American entrepreneur, I was excited at the decision of the US government to lift the trade embargo with Vietnam in 1994. Seeing the potential, I decided to go back to Vietnam to explore business opportunities.

In 1995, I opened and operated the first American product showroom in Ho Chi Minh City with the cooperation of the Foreign Trade and Investment Development Council of the city. One of the goals of the showroom was to provide small and medium-sized American companies with a cost-effective way to display and market their products there. The showroom was not successful for a number of reasons. The most obvious reason was lack of financing. Vietnamese buyers could not afford to buy the products or set up inventories. Hopefully, this problem will be alleviated with the help of OPIC and the EXIM Bank.

I was also involved with the negotiation of a joint venture project to set up an aircraft component overhaul and repair station in Vietnam. The negotiation was successful. A Business Cooperation Contract was signed between the American company and a Vietnamese aircraft repair station. However, the project has been cancelled due to the lack of financing.

Lately, recognizing the need for business training in Vietnam, I have implemented a Hotel Management Internship program in which Vietnamese students are placed in an American On the Job Training program. This program has been very successful.

During the course of doing business in Vietnam, I recognized the challenges and the frustrations of small and medium- sized American firms in developing business opportunities there. One of the main reasons is the lack of money in Vietnam for financing and for the purchase of US goods and services. My former country remains a poor country over twenty years after the war. Another reason is the lack of practical experience in Vietnam. Small US companies cannot afford to put people on the ground in Vietnam for long periods just to gain experience.

VABC, which was founded in February of 1998 by a group of American companies and entrepreneurs, is a response to a need that I saw in trying to do business in Vietnam just after the embargo was lifted. VABC provides a vehicle for our small and medium-sized company members to share their experiences and avoid costly mistakes.

In spite of difficulties in doing business with Vietnam, VABC and its members are committed to pursuing business opportunities in Vietnam. Our members are currently involved in over 15 projects. I have submitted a list of the more important projects to the Committee.

Trade is a two way street. For Vietnam to do business with the US, it needs hard currency that it will only obtain by economic development. Exports will play a large role in this development. By normalizing the trade relations with Vietnam, Vietnam will be able to export and by exporting Vietnam will be able to afford American products and services, which they want very much.

Therefore, we urge you to consider the renewal of the waiver of the Jackson-Vanik amendment and that you support the successful negotiation of the bilateral trade agreement.

We believe that a mutually beneficial trade relationship is important to both countries and should be given a high priority. We should stop dwelling in the past and move forward.

Again, I appreciate the opportunity to speak on behalf of the Vietnamese American Business Council.

Attachment A

PARTIAL LIST OF VABC'S MEMBERS AND ASSOCIATES

• Ablondi, Foster, Sobin and Davidow, Washington DC
• Charter Resources International, LC, Richmond, VA
• Council on International Educational Exchange, Hong Kong
• Engineering Management Services, Inc., Vienna, Virginia
• Global Spectrum, Washington DC
• J.R. Short Milling Co., Chicago, IL
• MC Pacific, Westminster, California
• Ocoran Corporation, Arlington, Texas
• Pacific Affairs Associates, Honolulu, Hawaii
• Pacific Trading Company, Portland, OR
• Peter Vogt & Associates, Inc., Washington DC
• Prolific Systems, Freemont, California
• PV Hotel International Consultants, Washington DC
• SouthEast Services, Westminster, California
• Vietnam Development Partners, LLC, Denver, Colorado
• Vietnam Resource Group, Washington DC
• VINA Express Corporation, New York, New York
• Vitech, Seattle, Washington
• Worldwide Marketing Group, Inc., Rockville, Maryland

Individual Members:

• Leo Dorsey, Harrisburg, PA
• Jeff Farrell, Coldwell Banker, Santa Barbara, CA
• Quang Nguyen, San Jose, CA
• Phung Vu, Washington DC

Non-resident Members:

• Central Club of Directors, Ha Noi, Vietnam
• Hoang Le Corporation, Ha Noi, Vietnam.
• Phuong Hong Pte., HCM City, Vietnam

Attachment B

TYPICAL PROJECTS COORDINATED BY VABC MEMBERS

Completed Projects:

• Project Management Training for Vietnamese officials, funded by the World Bank in 1994 (Engineering Management Services, Vienna, VA)
• Export Training in Ha Noi in 1994 and in 1998
  (Ablondi, Foster, Sobin and Davidow, Washington DC)
• Opened and operated the first American Product Showroom in Vietnam in 1995-1996
  (Vietnam Resource Group, Washington DC).
• Opened the first US travel agency in Vietnam in 1997
  (Global Spectrum, Washington DC)
• Successfully negotiated a business cooperation contract to set up and operate a aircraft component Repair station in Vietnam in 1997
  (Vietnam Development Partners, LLC, Denver, CO)
• Hosted various trade delegations from Vietnam
  (Vietnam Resource Group).
• Coordinated 8 trade missions to Vietnam for small and medium sized American companies
  (Vietnam Resource Group).
• . Coordinated an internship program for Vietnamese students in Orlando, Florida in 1997
  (PV Hotel International Consultants, Washington DC)

Current Projects:

• Coordinate with the Training Center of the Ministry of Planning and Investment to set up a training program designed to provide Vietnamese executives with business management training.
• Cooperate with the Department of Planning and Investment both in Ha Noi and HCM cities to organize a Conference on Trade and Investment in which American companies could be issued business licenses to explore the market without going through time-consuming bureaucratic procedures.
• Continue working to introduce various trade shows in the US to Vietnamese companies.
• Proposal for a documentary film promoting a new Vietnam
• Import food products from Vietnam
• Introduce MBA training programs to Vietnam
• Promote educational exchange programs.
• Continue developing internship programs in different fields ie: Hotel/Tourism, Agriculture, Information Technology, Banking.