United States President Bill Clinton's historic visit to Vietnam symbolises a new era in relations between the two nations but is unlikely to have any immediate impact in building Vietnam's reputation as a business and investment destination.
Mr Clinton arrived in Vietnam last night for a three-day visit, the first by a US president to the unified Vietnam, 25 years after US-backed South Vietnam surrendered to communist forces.
The visit marks the latest step in a gradual rapprochement between the two countries, following the lifting of a 19-year US trade embargo in 1994 and the signing of a Bilateral Trade Agreement (BTA) last July.
Mr Clinton will be hoping for assurances from Vietnam it will act in good faith by implementing the provisions of the BTA and he is likely to offer considerable technical assistance toward that end.
But the fundamental changes to institutions, procedures and broader attitudes required under the agreement are profound and will not come easily, despite the seven-year timeframe allowed before US companies can operate in Vietnam on a truly equal footing with local competitors.
After 15 years of economic reform, the state sector still produces about half of economic output and, while Vietnam's leadership has embraced economic reform, it remains committed to a pace of change aimed at ensuring continued social and political stability. According to Tony Foster, vice-chairman of the American Chamber of Commerce in Hanoi, that continuing caution will be mirrored by US and other foreign investors.
