Prospects for Vietnam-US cooperation from high-level visits

High-level visits open up many areas of Vietnam-US cooperation, in which trade and economy are core factors, experts say.

"President Joe Biden's upcoming visit means that the US places high priority on Vietnam, as an independent entity with growing economic relations," economics professor David Dapice of the Kennedy School, Harvard University, told VnExpress .

Mr. Dapice added that previous visits by many high-ranking US officials were in line with this priority. Since 2021, Vietnam has welcomed many top officials in the Biden administration, notably the visit of Vice President Kamala Harris.

This year, US Secretary of State Antony Blinken, Treasury Secretary Janet Yellen, a congressional delegation and representatives of more than 50 US businesses have also visited and worked in Vietnam. President Biden’s visit to Vietnam on September 10-11 will be the highest expression of this priority.

In the opposite direction, in May 2022, Prime Minister Pham Minh Chinh visited and worked in the US for 7 days, helping bilateral relations gain momentum in many areas. Head of the Central External Relations Commission Le Hoai Trung also visited and worked in the US in July.

In March, General Secretary Nguyen Phu Trong had a phone call with President Biden on the occasion of the 10th anniversary of the establishment of the Comprehensive Partnership between the two countries. Receiving US Secretary of State Blinken on April 15, General Secretary Nguyen Phu Trong said that the positive results in the bilateral relationship in recent times are the basis for continuing to elevate the bilateral relationship to new heights, for the benefit of the people of both countries, for peace, stability, and development in the region and the world.

US President Joe Biden speaks in the Rose Garden of the White House on May 25. Photo: AFP

Professor Carl Thayer, from the Australian Defense Force Academy, University of New South Wales, commented that these high-level exchanges demonstrate the US's recognition of Vietnam's political system, as well as increased political trust between the two countries.

Mr. Thayer said that since establishing the Comprehensive Partnership in 2013, Vietnam and the US have focused on nine areas of cooperation, including politics and diplomacy, trade and economic relations, science and technology, education, environment and health, war legacy issues, defense and security, promotion and protection of human rights, culture, tourism and sports.

These areas have all witnessed remarkable progress, with trade and economics being the main drivers. According to the General Statistics Office, Vietnam-US trade turnover increased from 29 billion USD in 2013 to about 123 billion USD in 2022.

Accumulated to June this year, US direct investment in Vietnam reached 11.73 billion USD with more than 1,200 projects, ranking 11th among countries and territories investing in Vietnam.

Speaking to the press in April, Secretary of State Blinken said that the relationship with Vietnam is one of the most dynamic and important. In a message afterwards, he said that his visit to Vietnam aims to expand and deepen cooperation between the two countries, expressing his expectations for the prospects of cooperation between the two countries in the next 10 years.

Commenting on the potential for bilateral relations to grow, Professor David Dapice said that the two sides could focus on cybersecurity cooperation, which Vietnam has shown great interest in. This could include investment in a cloud computing center in Vietnam, as well as cybersecurity enhancement solutions in which the US has strengths.

"Some companies like Amazon, Microsoft, Google can build secure cloud computing centers in Vietnam. Although it may be expensive, such projects can be useful and will be discussed by both sides," said Mr. Dapice.

Besides cybersecurity, chip manufacturing and green energy transition are also areas where the two sides can aim to further strengthen cooperation in the future.

In 2022, the United States and Vietnam launched the Vietnam Low Emission Energy Program II (V-LEEP II) project, worth 36 million USD, funded by the United States Agency for International Development (USAID). The project is expected to provide technical assistance to Vietnam to realize its sustainable energy transition goals.

USAID said V-LEEP II will contribute to the design, financing, construction, and operation of new clean energy resources, including 2,000 megawatts (MW) of renewable energy and 1,000 MW of natural gas-fired power.

Prime Minister Pham Minh Chinh (left) takes a photo with US President Joe Biden at the White House on May 12, 2022. Photo: VNA

Professor Thayer said trade and investment remain the core of the Vietnam-US bilateral relationship. The US wants to find a secure and flexible semiconductor supply chain from Vietnam, while Vietnam seeks greater investment and access to the US market, in the context of a volatile global economy.

During her visit to Vietnam in July, US Treasury Secretary Yellen assessed Vietnam as an increasingly important partner for the US and a key player in the country’s Indo-Pacific strategy. She affirmed that the US is ready to support Vietnam in improving its capacity to produce semiconductor chips and renewable energy.

According to Mr. Thayer, Ms. Yellen's visit reinforced the US commitment to support Vietnam's economic reform and global integration, promoting the shift of activities in the goods supply chain, aiming to "give Vietnam a privileged position in the US global supply chain".

Secretary Yellen emphasized that Vietnam is an important intersection in the global semiconductor supply chain, as demonstrated by large investments by US technology companies in Vietnam such as Amkor Technology or Intel Corporation, with the company's world's largest chip assembly and testing plant located in Ho Chi Minh City.

Professor Dapice said that Vietnam's improvements in educated workforce, green energy and highly skilled suppliers will open up opportunities to attract more FDI from the US.

White House press secretary Karine Jean-Pierre said President Biden's visit aims to explore opportunities to promote the growth of Vietnam's technology-focused and innovation-driven economy.

Experts expect this visit to be a premise for the two countries to discuss a free trade agreement (FTA). Vietnam has participated in 16 bilateral and multilateral FTAs, but has not signed one with the US.

"Economic cooperation between the two countries will continue to be enhanced if Vietnam and the US have a free trade agreement, to strengthen each other's market access with favorable conditions," Professor Dapice commented.

Vnexpress.net