U.S. Assistance to Vietnam

RL32636 -- U.S. Assistance to Vietnam

Updated June 17, 2005

CONTENTS

Summary

Overview of the U.S. Aid Program in Vietnam

Vietnam and the Millennium Challenge Account

U.S. Aid to Vietnam in Comparative Perspective

Future Areas for Possible Expansion

IMET (International Military Education and Training)

Peace Corps

Agent Orange

Recent Attempts to Restrict Aid

The Vietnam Human Rights Act (H.R. 1587)

A Review of the U.S.-Vietnam Normalization Process and the Restoration of U.S. Aid to Vietnam

Cold War Restrictions on Aid

The Normalization Process since the Early 1990s

Appendix

Footnotes

<font size="+1">List of Tables</font>

Table 1. Overview of U.S. Assistance to Vietnam

Table 2. Detailed Breakdown of U.S. Assistance Programs to Vietnam, FY2000-FY2005

Summary

U.S.-Vietnam diplomatic and economic relations were non-existent for more than fifteen years following communist North Vietnam's victory in 1975 over U.S. ally South Vietnam. Normalization of relations, particularly in the economic sphere, between the United States and unified Vietnam began in earnest in the 1990s. As the normalization process has proceeded, the U.S. has eliminated most of the Cold War-era restrictions on U.S. aid to Vietnam, and U.S. assistance has increased markedly from around $1 million when assistance was resumed in 1991 to nearly $50 million in FY2004.

In recent years, many Members of Congress have become interested in linking U.S. aid to the human rights situation in Vietnam. One initiative in the 108th Congress, H.R. 1587, proposed capping existing non-humanitarian U.S. assistance programs to the Vietnamese government at FY2004 levels if the President did not certify that Vietnam is making "substantial progress" in human rights, including religious freedom. In the near term, the substantive impact of H.R. 1587 on U.S. aid would likely have been negligible because at present, no U.S. non-humanitarian assistance is given directly to the government of Vietnam. Thus, if it had been enacted, the bill's principal impact would likely have been symbolic. Proponents of the measure argued that it would pressure the Vietnamese government to improve the country's human rights situation. Critics argued that the bill could chill the warming of bilateral political and security ties that has been taking place slowly over the past several months. On July 19, 2004, the House passed H.R. 1587. Attempts to include stripped-down versions of the measure in the Consolidated Appropriations Act, 2005 (H.R. 4818) did not succeed.

U.S. bilateral assistance programs are likely to come under additional scrutiny in the future. At some point in the coming year or two, Congress is expected to consider granting permanent normal trade relations (PNTR) status to Vietnam as part of Vietnam's bid to join the World Trade Organization (WTO). Hanoi has set a goal of attaining WTO membership by the end of 2005.

This report quantifies and briefly describes U.S. assistance programs to Vietnam. It includes an appendix detailing funding levels for U.S. aid programs. The report will be updated periodically.