Promises to open new opportunities in bilateral trade relations

Processing shrimp for export at Duyen Hai Economic Development Company - COFIDEC, Binh Chanh District, Ho Chi Minh City

After more than 27 years of normalization of relations, Vietnam-US cooperation has achieved much substantive progress, both bilaterally and multilaterally, in many different fields.

Vietnam's consistent policy has always considered the United States one of its top important partners; in which, economics, trade and investment continue to play a central role in promoting bilateral relations.

Therefore, the working trip of General Secretary andPresident To Lam and his wife, along with the high-ranking Vietnamese delegation, to attend the Future Summit, 79th Session of the United Nations General Assembly in the United States promises to open up new opportunities in bilateral trade relations between Vietnam and the United States.

Top Partner

According to trade experts, in the economic and trade fields, the cooperation mechanism between Vietnam and the United States has had important developments such as: Signing the Bilateral Trade Agreement (BTA) in 2000; The United States approved Permanent Normal Trade Relations (PNTR) for Vietnam in 2006; Vietnam joined the World Trade Organization (WTO) in 2006.

At the same time, the two countries signed the Trade and Investment Framework Agreement (TIFA) in 2007; established the Vietnam-US Comprehensive Partnership (2013); and signed the Action Plan towards a harmonious and sustainable trade balance in 2019.

In addition, the two countries jointly participated in the consultation on the Indo-Pacific Economic Framework (IPEF) for Prosperity 2022.

According to experts, over the years, the United States has always been one of the largest investment partners in Vietnam with nearly 1,150 active projects and a total registered investment capital of more than 10.3 billion USD, ranking 11th out of 141 economies investing in Vietnam.

In particular, the Ministry of Industry and Trade always considers cooperation between ministries, branches, and state governments as an important focus to promote extensive cooperation between Vietnam and the United States, contributing to realizing the goals and commitments of the two countries' senior leaders.

Furthermore, the increased cooperation and engagement at the State level with Oregon, West Virginia, Maryland, Virginia, California, etc. has helped establish comprehensive cooperation frameworks, facilitating trade and investment exchanges in the fields of import and export, commerce, industry and energy. At the same time, it has increased the sharing of information on potential business opportunities, supporting projects as well as the operations of businesses of the two countries.

According to the General Statistics Office, in the first 8 months of 2024, Vietnam's export turnover of goods to the United States reached 77.9 billion USD, up 25.4%; import turnover of goods from this market reached 9.8 billion USD, up 6.9%.

Notably, the United States is Vietnam's largest export market with an estimated turnover of 77.9 billion USD; trade surplus with the United States is estimated at 68.1 billion USD, up 28.6% over the same period in 2023.

Export items to the United States include computers, electronic products and components, machinery, equipment, tools, spare parts, textiles, footwear, agricultural products...

In return, Vietnam also imports a large amount of technological equipment, production materials and agricultural products from the United States, contributing to promoting the industrialization process and improving domestic production capacity.

At the meeting and working session with Ms. Sarah Elleman, Assistant Chief of the United States Trade Representative (USTR) in charge of Southeast Asia and the Pacific, Deputy Minister of Industry and Trade Nguyen Hoang Long highly appreciated the close, active and effective cooperation of USTR in further promoting trade and investment relations as well as the role of the TIFA Council in promptly discussing arising issues, strengthening bilateral economic-trade-investment relations for the benefit of businesses and people of the two countries.

Sewing export goods at Tinh Loi Garment Company, Hai Duong

Deputy Minister Nguyen Hoang Long affirmed that Vietnam always considers the United States a leading important partner; assessed that intellectual property-related content will be one of the important contents of the economic-trade cooperation pillar in the coming time, especially in the context that Vietnam and the United States have upgraded their bilateral relations to a comprehensive strategic partnership.

In addition, the Deputy Minister suggested that the two countries increase policy exchanges, consolidate strategic trust, and create a solid foundation to promote economic, trade and investment relations through the dialogue mechanism of the TIFA Council.

Also at the meeting, the Deputy Minister suggested that the USTR pay attention and discuss with relevant agencies of the US Government regarding a number of energy projects in Vietnam invested by US companies and the issue of fair energy transition JETP.

Ms. Sarah Elleman highly appreciated the position and role of Vietnam, affirming the principle of trade exchange that needs to bring sustainable benefits and values, prioritizing the promotion of effective investment and environmental protection, thereby creating new momentum for the development of economic, trade and investment relations between the two countries. The United States will take note of the proposals and concerns related to investment and business activities of US enterprises in Vietnam.

Regarding the USTR’s annual 301 Report on intellectual property, the two sides had frank and specific discussions on issues related to intellectual property, copyright, and counterfeit goods trading in traditional markets and stores as well as on e-commerce platforms. USTR acknowledged and highly appreciated the Vietnamese Government’s many practical and effective actions to improve the protection and enforcement of intellectual property rights.

At the same time, it affirmed that Vietnam has achieved many substantial progresses in the field of intellectual property in recent years, especially in perfecting the legal framework and enhancing enforcement capacity.

The two sides agreed to further strengthen cooperation on intellectual property within the framework of the TIFA Council, including technical support and experts from the United States.

Take advantage

Recently, a trade delegation of more than 100 members, including 50 representatives of 35 US businesses, visited Vietnam. Under Secretary of Agriculture, US Department of Agriculture, Ms. Alexis Taylor shared that the focus of the visit is to connect with major importers through direct meetings between businesses; at the same time, learn about market conditions in Vietnam and the region through field visits, meetings with industry experts as well as many bilateral meetings with the Vietnamese Government in Hanoi and Ho Chi Minh City.

Under Secretary Alexis Taylor said the Southeast Asian market holds great opportunity for U.S. exporters. Vietnamese consumers are increasingly turning to U.S. products to meet growing demand in the food processing, retail, and restaurant industries for a wide range of high-quality U.S. products such as nuts, fresh fruit, chicken, beef, and pork.

A representative of the European-American Market Department (Ministry of Industry and Trade) said that in recent years, Vietnam has been transforming strongly to become a major global manufacturing center. Vietnamese enterprises have produced many products with diverse types, competitive prices and increasingly improved quality.

At the same time, after the COVID-19 pandemic as well as recent geopolitical and economic instability, many corporations, retail and wholesale distribution channels are promoting diversification strategies, ensuring sustainable supply sources and have chosen Vietnam as one of the strategic locations in the global supply chain. This is a great opportunity, but to seize the opportunity will also require great efforts from manufacturing and exporting enterprises.

In particular, President Joe Biden’s historic visit and the upgrade of relations to a comprehensive strategic partnership will create unprecedented opportunities to promote new, breakthrough areas of cooperation, building internal strength for Vietnam to truly be present in the global value chain. In particular, focusing on promoting the participation of Vietnamese enterprises in the field of supplying raw materials, components, and equipment for the energy, aviation, digital economy, semiconductor ecosystem, and artificial intelligence applications.

In the context of a difficult and challenging global economy, the needs and consumer tastes in Vietnam's export markets in general and the United States in particular have seen many new trends, especially in terms of price, quality and requirements related to environmental protection, green production standards, clean and sustainable supply chains.

This requires Vietnamese enterprises to quickly adapt to these changes. Furthermore, when exporting to the United States, enterprises need to clearly define their product strategy, partners, and distribution channels; carefully study regulations, export barriers, and the possibility of being involved in trade defense cases. On the other hand, ensure that input materials have clear origins, do not affect the environment or use forced labor; and at the same time, gradually research and upgrade production facilities and factories according to green production standards.

In addition, businesses need to actively participate in trade promotion, exhibitions, connect with relevant agencies, create prestige and build trust with US customers, thereby promoting bilateral trade turnover between the two countries.

TB (according to VNA)

Source: https://baohaiduong.vn/viet-nam-hoa-ky-hua-hen-mo-them-co-hoi-moi-trong-quan-he-thuong-mai-song-phuong-393674.html