Human rights groups say minority groups are often suppressed

The new bill accuses the Vietnamese government of consistently pursuing "a policy of harassment, discrimination, and intimidation" of its opponents.

The move has been condemned in Vietnam, where communist party newspaper Nhan Dan called it "an unfriendly act".

The bill passed by 322 votes to 45, but it needs Senate approval to become law.

The new legislation prevents the US government from increasing non-humanitarian assistance to Vietnam above the current level of $40m, unless Hanoi makes substantial progress in its human rights record.

The bill also allows the White House to spend $4m over the next two years to support Vietnamese dissident groups.

Separate funds were approved for efforts to overcome Vietnamese jamming of the US-based radio station Radio Free Asia.

Republican Representative Chris Smith, the vice chairman of the House Committee on International Relations and sponsor of the bill, said: "We cannot stand idly by while the human rights situation in Vietnam deteriorates and goes from horrific to even worse."

He said he would do everything he could to overcome opposition to the bill in the US Senate this time. Congress approved a similar bill in 2001, but the legislation was never voted on in the Senate.

'Detrimental'

The ruling Communist Party's Nhan Dan newspaper said the bill ran counter to efforts to normalise "diplomatic, political and economic relations" between the two countries.

"The presentation of this so-called 'Vietnam Human Rights Act' at a time when the Vietnam-US ties (are) progressing well and expanding is untimely and detrimental to bilateral relations," it said in an editorial.

It also said Washington had no right to judge Vietnam's human rights situation, because of its own record during the Vietnam War.

International human rights groups have often criticised Vietnam for its repression of political and religious freedoms, as well as the jailing of democracy and human rights activists.

Earlier this month two elderly dissidents were jailed for criticising the communist administration.