Vietnam’s engagement in discussion of IPEF pillars highly valued by US officials

In an interview granted to the Vietnam News Agency, he said the sectors that US businesses hope to invest in and cooperate with Vietnam include high technology, energy, agriculture, healthcare/pharmaceutical, finance, aviation, and tourism. Notably, there are an increasing number of Vietnamese enterprises wishing to expand investment and business activities in the US, which has never been seen before.

Pointing out difficulties and challenges to economic diplomacy, he said the US is currently the biggest importer of Vietnamese products, with exports to this market this year expected to exceed the US$110 billion in 2021, but Vietnam has yet to have an effective framework for managing trade ties with the US, so it has frequently been subject to trade remedy investigations. Meanwhile, some policies of the US like the recently approved Inflation Reduction Act of 2022 and a mechanism for carbon border adjustment that is being drafted may have complicated impacts on Vietnamese exporters.

To grasp opportunities of economic cooperation with the US, Dung recommended that first, Vietnam should maintain high-level relations with the US to promote their partnership momentum, develop the key exports to the US, create more favourable conditions for US products to enter Vietnam, soon sign a double taxation avoidance agreement, and approve common principles on auditing to facilitate US investment in Vietnam. Besides, it is necessary to make use of the US’s assistance for the realisation of the COP26 commitments while maintaining dialogue and paying attention to US businesses’ proposals and concern about Decree 53 on digital economy management.

Second, Vietnam should keep its proactive participation in the discussion of the Indo-Pacific Economic Framework for Prosperity (IPEF) pillars, which will help the country build international trade rules that match its interests.

Third, enterprises and localities of Vietnam should learn more about strict requirements of the US, adapt their product marketing plans to consumer tastes in the US, capitalise on the Vietnamese community there and hire consultancies to devise suitable market conquering strategies, cooperate with US authorities in trade remedy investigations, and steer clear of violating rules of origin or US sanctions, the ambassador suggested.

The Vietnamese Embassy and Trade Office in the US have worked to promote the three above mentioned aspects, he said, noting that they have maintained and boosted relations with the US administration, congress, and businesses; frequently reported on the US economic situation and new policies that may affect Vietnam; met and persuaded relevant parties to secure objective conclusions and protect Vietnam’s interests in monetary policy, origin, and anti-dumping probes.

The embassy has also organised or assisted delegations from Vietnam to hold business forums and investment and trade promotion events, he added.

Dung pointed out the need to step up all-level mutual visits and exchanges between enterprises of the two countries; invest more in studying, forecasting, and warning since the US and global economies are facing complex changes that may affect Vietnam; and further updating Vietnamese localities and businesses about regulations, standards, and consumer tastes in the US market.

It is also important to have consistent and drastic policies and measures on economic diplomacy to secure big and long-term interests, he went on, adding that his embassy will continue helping Vietnamese firms solve obstacles and difficulties, form a stable trade cooperation mechanism, and reduce trade remedies by the US.