Trade with US sees harmonious and sustainable development

27 years on from the initial establishment of diplomatic relations, bilateral trade turnover between the two countries has continuously grown, with the US remaining the largest Vietnamese export market, while the country has become the ninth largest trading partner of the US.

Discussing the bright spots in the mutual relationship, Bui Huy Son, minister counselor and head of the Vietnam Trade Office in the US, said that last year’s two-way turnover exceeded the US$100 billion mark for the first time. This represented an important achievement amid the COVID-19 pandemic disrupting global supply chains.

Most notably, the effective and successful co-ordination between the nation and the US in policy exchanges, especially regarding the consultation process to reach a final agreement to avoid imposing tariffs on Vietnam, also serves as the basis for both sides to continue maintaining a favourable policy dialogue relationship moving forward.

Furthermore, the two nations can be viewed as complementary economies. The nation primarily exports export groups such as components, electronic machinery, garments and textiles, footwear, agricultural products, and seafood, while importing raw materials for production.

According to the Europe-America Market Department under the Ministry of Industry and Trade, by the end of the first quarter of the year, total bilateral trade turnover will have reached US$29.4 billion.

Of the figure, Vietnamese exports to the US hit US$25.96 billion, up 16.7% over the same period from last year. Similarly, the country imported roughly US$3.4 billion worth of goods from the US, a decline of 7.7% on-year.

Economic experts have stated that the US economy is showing positive signs of a recovery as a result of its large-scale vaccination campaign, thereby contributing to accelerating the economic recovery process and consumer demand for many types of goods. This move therefore presents a prime opportunity for Vietnam to bolster its exports to the vast market.

Moreover, the nation’s competent control of the COVID-19 pandemic will help to maintain a stable human resource, thereby ensuring production activities as well as the continuity of the supply chain to the US market.

Regarding further investment, as of March direct investment by the US in Vietnam reached US$10.3 billion, thereby ranking 11th out of 141 countries and territories investing in the nation.

Major US enterprises continue to pay close attention to investment in the Vietnamese market, with Intel Group announcing an additional investment of approximately US$500 million in its factory based in Ho Chi Minh City and Foxconn, Apple's main manufacturing partner, making a further investment of US$270 million in the northern province of Bac Giang.

Trade experts believe that despite high demand and great consumption, the US remains one of the most fastidious markets in the world for overseas goods to penetrate.

According to Son, the US food safety standard system has been built at both state and federal levels. As a result, it requires meticulous and thorough research in order fully grasp, and then to carry out and meet any rigid requirements.

Besides, businesses exporting goods to the US must also overcome numerous challenges from the tightening of people's spending due to high inflation, environmental and labour barriers, competition with other countries, trade remedies, and geographical distance, Son went on to emphasize.

The trade official suggested that local businesses strive to seize upon any opportunities, especially those from the strongly recovering US economy, particularly as forecasters believe that this year’s growth rate is quite high.

This will require firms to closely monitor market developments, ensure legal traceability requirements, timely co-ordinate and provide information upon request for verification by US relevant authorities.

Deputy Minister of Industry and Trade Do Thang Hai affirmed that the US has been identified as one of the most vital Vietnamese partners across all pillars of co-operation. In particular, the pillar of economic and trade co-operation has reaped great achievements as a contribution to developing the overall comprehensive partnership in an effective and sustentative manner, thereby meeting the interests of both nations’ people and business communities.