AMERICA AND VIETNAM: A NEW ERA : WHY NOW?

The timing of the announcement can be tied to several factors, most of them economic. U.S. firms are eager to get into Vietnam’s booming market of 71 million people. Currently, U.S. exports and investment there are dwarfed by those of Asians and Europeans. Without diplomatic support, U.S. firms operate at a disadvantage.

HOW VIETNAM COMPARES

Vietnam United States POPULATION 71 million 258 million WORK FORCE 34 million 127.5 million UNEMPLOYMENT 6% 5.6% MIN. WAGE $.20 per hour $4.25 per hour PERSONAL INCOME $250 $19,802

THE CHINA FACTOR

Full ties with Vietnam are in U.S. security interests. The issue that initially led to U.S. intervention in Vietnam--growing concern about China’s role in Southeast Asia--is fueling U.S. interest today. China’s role as a major economic and military power has been underscored by its aggressive behavior in the South China Sea. It has occupied portions of the Spratly Islands, to which Vietnam, Malaysia, the Philippines, Taiwan and Brunei have also staked claims, but has refused offers to negotiate a solution. Normalizing relations with Vietnam would signal to Beijing that Washington’s desire for a peaceful solution to the Spratly dispute is more than rhetoric.

U.S. TRADING PARTNERS

U.S. EXPORTS 1. Canada 2. Japan 3. Mexico 4. Britain 5. Germany 89. Vietnam ****

U.S. IMPORTS 1. Canada 2. Japan 3. Mexico 4. China 5. Germany 116. Vietnam ****

WORLD’S LARGEST RICE EXPORTERS (In millions of metric tons) 1. Thailand: 4.6 2. United States: 2.8 3. Vietnam: 2.0 4. Pakistan: 1.2 5. Taiwan: 1.1 NOTE: Vietnam will officially join the Assn. of Southeast Asian Nations (ASEAN) this month. The six-nation group has become America’s fifth-largest trading partner.

Researched by PETER JOHNSON and CARY SCHNEIDER / Los Angeles Times