When Nghia Van Phi first returned home to Vietnam in 2003, he still carried animosities toward the Communist government he had fled nearly three decades earlier.
But Phi, president of a Santa Ana discount home improvement outlet, has since become an enthusiastic supporter of the economic rebuilding of that country. His company, US HiFi Inc., a scaled-down version of Home Depot that caters to the Vietnamese American community, imports 70% of its ceramic tiles, solid oak entry doors and other home products from Vietnam.
That's why Phi hopes Congress will act soon on a bill that would establish "permanent normal trade relations" with Vietnam, the final step in freeing up trade and investment between the former adversaries. During the Cold War, most Communist countries were denied that trade status, which meant they paid higher tariffs on goods exported to the U.S.
Supporters hope to pass the legislation before Vietnam joins the World Trade Organization, the Geneva-based global trade group. Leaders in Hanoi want to finalize their WTO bid by November, when they host President Bush and Asian leaders for this year's meeting of the Asia-Pacific Economic Cooperation forum.
Vietnam hopes to replicate the success of China, which saw its global prestige and trade volume soar after it joined the WTO in 2001. To secure the country's membership, Hanoi officials have agreed to lower tariffs, remove barriers to foreign retailers and banks, strengthen the judicial system and crack down on corruption.
The U.S. Chamber of Commerce and other business leaders expect the Vietnam bill to be approved, given the bipartisan support from congressional leaders who served in the war, including Sens. John McCain (R-Ariz.), Chuck Hagel (R-Neb.) and John F. Kerry (D-Mass.). But it is unclear when the legislation can be squeezed into Congress' crowded summer agenda.
Vietnam could still enter the WTO without the U.S. approval, but trade between the country and the U.S. would not be governed by global rules, putting U.S. firms at a disadvantage, the bill's supporters say.
Passage of permanent normal trade relations with Vietnam wouldn't have much of an immediate effect on Phi, because the goods he imports already have low tariffs and he hasn't directly invested money there. But he says normalized relations would have the psychological benefit of clearing away the final barrier between the U.S. and Vietnam, plus it would encourage the Communist government to continue moving toward greater economic and political openness.
