Major developments included:
the announcement of a formal "Security Dialogue" on political-military issues, a process that the United States has with four other Southeast Asian countries; the launch of bilateral investment treaty (BIT) negotiations; the Bush Administration's announcement that it would begin the process of exploring whether to add Vietnam to the Generalized System of Payments (GSP) program, which extends duty-free treatment to certain products that are imported from designated developing countries; an agreement in principle to introduce a Peace Corps program in Vietnam; the launch of a "high-level" bilateral Education Task Force; the announcement of new initiatives on adoptions, nuclear safety, aviation, climate change, food safety, and other issues. Vietnam's Economic Troubles

Since late 2007, Vietnam's economy has been buffeted by economic difficulties that have increased social strife and raised concerns about the country's economic stability. Vietnamese Americans have been among those arrested for aiding groups that have called for peaceful democratic change. Many Vietnamese are believed to be wary of China's increased influence in Southeast Asia. Introduction

Since the early 1990s, U.S.-Vietnam relations have gradually been normalizing, as the end of the Cold War erased the need for the United States to attempt to isolate the communist government that defeated the U.S.-backed South Vietnam in 1975. There are a number of strategic and tactical reasons behind Vietnam's efforts to upgrade its relationship with the United States. Ultimately, the pace and extent of the improvement in bilateral relations likely is limited by several factors, including Hanoi's concerns about upsetting Beijing, U.S. scrutiny of Vietnam's human rights record, Vietnamese conservatives' historical wariness of working with the United States, and Vietnamese suspicions that the United States' long-term goal is to end the Vietnamese Communist Party's (VCP) monopoly on power through a "peaceful evolution" strategy. Throughout the process of normalizing relations with Vietnam, Congress has played a significant role. U.S.-Vietnam Relations, 1975-2000

U.S.-Vietnam diplomatic and economic relations were virtually nonexistent for more than 15 years following communist North Vietnam's victory in 1975 over U.S. ally South Vietnam. Economic Ties

Economic ties are the most mature aspect of the bilateral relationship. PNTR/WTO Membership

The final step toward full economic normalization between the United States and Vietnam was accomplished in December 2006, when Congress passed and President Bush signed H.R. 6111 ( P.L. 109 - 432 ), extending permanent normal trade relations (PNTR) status to Vietnam. U.S. aid was over $75 million in FY2006, about three-and-a-half times the level in FY2000, and is estimated to have surpassed $90 million in FY2007, making Vietnam one of the largest recipients of U.S. aid in East Asia. The Vietnam Human Rights Acts

In large measure due to Vietnam's crackdowns in the Central Highlands earlier in the decade, attempts have been made since the 107 th Congress to link U.S. aid to the human rights situation in Vietnam. Proponents of the Vietnam Human Rights Act argue that additional pressure should be placed on the Vietnamese government to improve its human rights record. In May 2008, the House passed H.Res. China also is Vietnam's largest trading partner. H.R.
After communist North Vietnam's victory over U.S.-backed South Vietnam in 1975, U.S.-Vietnam relations remained essentially frozen until the mid-1990s. Since then, bilateral ties have expanded remarkably, to the point where the relationship has been virtually normalized. Indeed, since 2002, overlapping strategic and economic interests have compelled the United States and Vietnam to improve relations across a wide spectrum of issues. Congress played a significant role in the normalization process and continues to influence the state of bilateral relations. Voices favoring improved relations have included those reflecting U.S. business interests in Vietnam's reforming economy and U.S. strategic interests in expanding cooperation with a populous country—Vietnam has over 85 million people—that has an ambivalent relationship with China. Others argue that improvements in bilateral relations should be conditioned upon Vietnam's authoritarian government improving its record on human rights. The population of over 1 million Vietnamese Americans, as well as legacies of the Vietnam War, also drive continued U.S. interest.
Economic ties are the most mature aspect of the bilateral relationship. The United States is Vietnam's largest export market. The final step toward full economic normalization was accomplished in December 2006, when Congress passed and President Bush signed H.R. 6111 (P.L. 109-432), extending permanent normal trade relations (PNTR) status to Vietnam. For years, the United States has supported Vietnam's market-oriented economic reforms, which many credit with Vietnam's extraordinary economic performance; from 1987-2007, annual gross domestic product (GDP) growth has averaged over 7%. Since the early 1990s, poverty levels have been halved, to less than 30%. In 2008, the two countries launched bilateral investment treaty (BIT) talks and the Bush Administration announced that it would explore whether to add Vietnam to the Generalized System of Payments (GSP) program, which extends duty-free treatment to certain products that are imported from designated developing countries.
Since 2002, the United States and Vietnam have expanded political and security ties, symbolized by reciprocal summits that have been held annually since 2005. Vietnam is one of the largest recipients of U.S. assistance in East Asia; estimated U.S. aid in FY2008 surpassed $100 million, much of it for health-related activities. In September 2007, the House passed the Vietnam Human Rights Act, H.R. 3096, which would freeze some non-humanitarian U.S. assistance programs at existing levels if Vietnam does not improve its human rights situation. Since 2006, arrests of dissidents and other developments have increased concerns about human rights.
Vietnamese leaders have sought to upgrade relations with the United States due in part to worries about China's expanding influence in Southeast Asia and the desire for continued U.S. support for their economic reforms. Many argue, however, that there is little evidence that Hanoi seeks to balance Beijing's rising power. Also, some Vietnamese remain suspicious that the United States' long-term goal is to end the Vietnamese communist party's monopoly on power through a "peaceful evolution" strategy.