Great potential in Vietnamese business cooperation

It is expected that US FDI capital in Vietnam will increase in the coming time, focusing on the fields of energy, digital transformation, green growth, etc.

Vietnam and the US still have a lot of potential for development cooperation. In the photo: Production at the Ford Hai Duong Automobile Manufacturing and Assembly Plant

Vietnam is an important link in the supply chain.

Next week, Prime Minister Pham Minh Chinh will receive a delegation of American businesses visiting Vietnam, including Nvidia - a corporation specializing in digital transformation, cloud computing, Internet of Things...

Visits by US businesses to Vietnam are more frequent, especially after the two countries upgraded their relationship to a Comprehensive Strategic Partnership in September 2023. FDI flows from the US to Vietnam are increasing, and business cooperation between the two countries is expanding in many areas.

During the visit of a delegation of 50 US businesses to Vietnam in March this year, US-EXIM Bank (USA) signed a memorandum of understanding worth 500 million USD with the Vietnam Development Bank (VDB).

Vietnam has strategic partnerships and comprehensive strategic partnerships with most G20 countries; has FTAs ​​with 65 economies; trade volume of nearly 800 billion USD and is in the Top 20 countries with the largest trade volume in the world; attracts FDI capital of more than 400 billion USD, FDI disbursement is expected to reach 25 billion USD in 2024.

The cooperation between US-EXIM Bank and VDB is expected to facilitate US exports to Vietnam, especially related to green economic transition, infrastructure development projects and climate-related projects.

The US is currently the second largest trading partner, the largest export market, and one of the leading investors in Vietnam. Vietnam has risen to become one of the 10 largest trading partners of the US. Two-way trade continues to grow strongly and hit a record in 2024, when it reached 110.9 billion USD in 10 months. Vietnam is an important link in the US global supply chain.

US Secretary of State Antony Blinken assessed that Vietnam plays an important role in trade, has a strategic position in the Asia-Pacific region, and is an important partner of the US Government and businesses. One of the biggest priorities of the US in the coming time is to improve the effectiveness of the comprehensive strategic partnership between the two countries.

“The cooperation between the two countries and the partnership between businesses are more vibrant and stronger than ever, bringing real benefits to the people of both countries. Over the past decade, the trade turnover between the two countries has increased fourfold, from 30 billion USD to 120 billion USD,” said Mr. Antony Blinken.

According to the Vietnam Federation of Commerce and Industry (VCCI), despite the fluctuations of the global economy, Vietnam has risen to 35th place in the top 40 countries with the largest economic scale in the world; top 20 countries in attracting foreign investment and top 20 in import-export turnover in the world.

Vietnam's economy remains stable, with GDP growth at a fairly high level, reaching 5% in 2023 and expected to reach over 7% in 2024. In the above economic achievements, there are positive contributions from businesses and investors from the US.

Improve investment and business environment

According to the Foreign Investment Agency (Ministry of Planning and Investment), US businesses are currently investing more than 11 billion USD in Vietnam. FDI from the US is expected to increase thanks to the cooperative relationship between the two countries being at its best.

Affirming that Vietnam's economic development achievements have a significant contribution from US businesses, especially the figure of more than 11 billion USD of FDI capital from the US, Prime Minister Pham Minh Chinh said that this figure is still modest compared to the potential of the relationship between the two countries and the potential of US businesses.

“Vietnam hopes that US businesses will invest heavily in the fields of digital transformation, green transformation, and sustainable energy, and at the same time propose that the US Government remove restrictions on high-tech exports and recognize Vietnam as a market economy. Only by removing these bottlenecks can we promote strong cooperation, bringing greater benefits to the people and businesses of the two countries,” the Prime Minister emphasized.

With the upgrading of relations and the change of administration in the US, President of the American Chamber of Commerce (AmCham) Joseph Uddo said that this is an important time for Vietnam to continue improving its policy framework, attracting new investors, as well as supporting investors and businesses operating in Vietnam to continue to develop.

Regarding this issue, Prime Minister Pham Minh Chinh affirmed that to continue attracting investment resources for growth, Vietnam's focus is on improving the investment and business environment, reducing institutional bottlenecks, and reducing compliance costs for people and businesses.

“Vietnam is amending the Electricity Law, continuing to invest in energy, switching from coal-fired thermal power to nuclear power. American businesses investing in Vietnam do not have to worry about power shortages,” said the Prime Minister.

Vietnam is also building a national large data center, connecting to the international. This construction process needs the support of US technology corporations. Recently, General Secretary To Lam met with representatives of several large US corporations in the fields of energy, space satellites and technology, including AES, Pacifico Energy, SpaceX and Google. Accordingly, SpaceX - the world's leading corporation in providing spacecraft, satellite launch services and satellite communications, plans to invest 1.5 billion USD in Vietnam in the near future.

“Vietnam always creates favorable conditions for international investors, especially US businesses, to cooperate and invest in areas such as digital economy, circular economy, green economy, science and technology, innovation, renewable energy, high-quality human resource training and global supply chains,” Prime Minister Pham Minh Chinh emphasized.

The Prime Minister also expressed that, to strengthen cooperation in the coming period, he expected Vietnam and the US to move towards bilateral FTA negotiations, continue to build a legal framework to promote economic and trade relations, and create more favorable conditions for businesses of the two countries.

Source: https://baodautu.vn/tiem-nang-lon-trong-hop-tac-doanh-nghiep-viet—my-d231201.html