Expanded trade opportunities with US
Expanded trade opportunities with US
US companies are seeking new suppliers to minimize risks in supply chains, creating more opportunities for Vietnamese businesses in the post-pandemic era. However, the opportunities also face challenges.
Largest export market
“Vietnam considers the US one of the most important partners. Since upgrading bilateral relations to a comprehensive partnership in 2013, the two countries have deepened cooperation, focusing on trade and investment. The business communities of the two countries have played a very important role in this process,” said Deputy Minister of Industry and Trade Do Thang Hai at a recent Vietnam-US trade forum jointly held by the Ministry of Industry and Trade, the US Chamber of Commerce in Vietnam, and the US-ASEAN Business Council.
The signing ceremony for a memorandum of understanding between the Vietnamese Ministry of Industry and Trade and the US State of Oregon on advancing energy, economy and commerce cooperation |
According to Deputy Minister Hai, bilateral trade between Vietnam and the US grew from US$450 million in 1995 to nearly US$113 billion in 2021, despite supply chain disruptions caused by the COVID-19 pandemic. The US has become Vietnam’s second largest trading partner, with annual bilateral trade exceeding US$100 billion. The US has been Vietnam’s largest and most important export market for many years, while Vietnam has become the eighth largest trading partner of the US.
“The US is also one of the largest foreign investors in Vietnam, with nearly 1,150 projects currently operating with total registered capital of more than US$10.3 billion, ranking 11th among 141 economies investing in Vietnam,” Deputy Minister Hai said.
Deputy Minister of Industry and Trade Do Thang Hai delivered a speech at the Vietnam-US Trade Forum 2022 |
Trade defense measures
However, Vietnam has faced challenges in trade with the US, including the increased frequency of US trade defense investigations of Vietnamese goods. Moreover, the US has not recognized Vietnam as a market-driven economy.
Phan Thi Thang, Vice Chair of the Ho Chi Minh City People’s Committee, proposed that the US assist the city in a prefeasibility study for the establishment of an export goods irradiation center and provide technical assistance for Mekong Delta cities and provinces to ensure the quality of farm produce exports to the US.
Thang also expressed the wish for increased cooperation between Ho Chi Minh City and the US in the fields of logistics, digital economy, sharing economy, circular economy, smart city development, and building international financial centers.
According to Michael Vu Nguyen, Country Director of Boeing Vietnam, US companies are seeking new suppliers to minimize risks in supply chains, creating more opportunities for Vietnamese businesses.
Chung Seck, Vice Chair of Amcham Vietnam Digital Economy Committee, said to attract more US investment, the Vietnamese government should adopt a secure legal framework for safe cross-border data transfer and pay attention to intellectual property in the digital business environment.
| Within the framework of the Vietnam-US Trade Forum 2022, Deputy Minister of Industry and Trade Do Thang Hai and Oregon State officials signed a memorandum of understanding to facilitate trade exchange and investment in the industry and energy fields. |
