U.S.-Vietnam diplomatic and economic relations were non-existent for more then fifteen years following communist North Vietnam’s victory in 1975 over the 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 Warera 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.

This report will examine each of these trade issues, discussing their main elements and exploring their implications for the 111th Congress. This will be followed by an analysis of key trends in bilateral trade to discern any potential sources of trade friction in the future.