Vietnam-US trade thrives on effective mechanisms: trade counsellor
The economic and trade mechanisms between Vietnam and the US have shown efficiency throughout 2024, according to Do Ngoc Hung, trade counsellor and head of the Vietnam Trade Office in the American country.
In a recent interview with the Vietnam News Agency, Hung stressed that the US officials have highly valued Vietnam through the elevation of their ties to a comprehensive strategic partnership, which is developing in a deeper fashion, noting the two countries see each other as top-tier strategic partners, with increasingly significant roles and positions in the region and the world.
Two-way trade in January – October reached US$112 billion, with Vietnam enjoying a trade surplus of US$102 billion, a year-on-year increase of 26%. The US exports to Vietnam grew by nearly 30% to US$10 billion, he quoted statistics from the US International Trade Commission.
The trade counsellor said the cooperation framework between the two countries has been built on multiple levels, encompassing both multilateral mechanisms like the World Trade Organisation and the Asia – Pacific Economic Cooperation and bilateral agreements such as the Trade and Investment Framework Agreement and Bilateral Trade Agreement. Additional cooperation channels have been operated between ministerial-level agencies, inter-ministerial working groups, industry associations and enterprises, among others.
The year 2024 saw significant political developments in the US, culminating in Donald Trump's election victory for his second presidential term. Trump's upcoming administration, set to take office in January 2025, is expected to implement policies that could impact global and regional political and economic landscapes, he stated.
Peter Navarro, designated as senior counsellor for trade and manufacturing, indicated strong Republican support for Trump's approach to addressing inflation, trade deficits, and immigration issues. A key initiative is the proposed US Reciprocal Trade Act, which will allow the imposition of reciprocal tariffs on countries maintaining higher duties.
Hung said Vietnam, along with Thailand and China’s Taiwan, will be placed in the third priority group for trade negotiations under this potential legislation.
Insiders forecast that 2025 will present challenges for the US economy, with potentially low growth rates and persistent high inflation that could result in the US consumers’ tightening of the belt.
Beyond long-term economic cooperation goals, the trade office underscored the immediate need to handle trade deficit, which could trigger the US Department of Commerce’s initiation of anti-dumping, anti-subsidy, and origin fraud investigations.
Businesses, he said, should pay due attention to imported material sources, particularly those from the US, while continuing to improve technology and quality as well as reduce costs to gain competitive edge even in cases where tariffs are applied.
The push for balanced, sustainable, and mutually beneficial trade has become increasingly urgent, Hung stated, highlighting Vietnam commits to maintaining the bilateral trade and investment ties with the US. Cooperation in traditional energy and rare earth mineral exploitation will open up new cooperation opportunities as both nations will celebrate their 30th anniversary of diplomatic relations in 2025.
As the largest export market for Vietnam's agro-forestry-fishery products, the US market is expected to continue creating motives for Vietnam's export growth next year.
