Vietnam and the United States: An unparalleled opportunity to establish innovative new areas of collaboration
DNHN - "Vietnam pursues a consistent foreign policy of independence, self-reliance, peace, friendship, cooperation and development, diversification and multilateralization of foreign relations."
This was confirmed by Deputy Minister of Industry and Trade Do Thang Hai at the annual Vietnam-US Trade Forum in City on November 21, 2023. Ho Chi Minh City, on the occasion of the "Elevate-Startup" conference, which was jointly organized by the American Chamber of Commerce in Vietnam, the Ministry of Industry and Trade, and the governments of Oregon and Colorado, United States of America, participated in a direct combined effort. glandular tissue.
One of the most significant economic and trade partners is the United States.
Deputy Minister Do Thang Hai asserts that Vietnam endorses cooperation models that foster equitable and sustainable development and mutual benefit among nations, bolsters trade promotion initiatives, and recognizes that investments benefit businesses and individuals across the globe. Amidst the multifaceted milieu of the region, Vietnam advocates for an adaptable approach to collaboration that upholds the institutions and legislation of each nation, by the tenets of complementarity and reciprocal assistance for the advancement of both. aiding in the reduction of the development gap between nations.
Vietnam has consistently aligned its foreign policy with the United States, recognizing it as a critical economic and trade ally. On September 11, President Joe Biden and General Secretary Nguyen Phu Trong formally declared the enhancement of the bilateral relationship to that of a Comprehensive Strategic Partnership, thereby establishing a robust framework and facilitating the progression of collaborative endeavors between the two nations. comprehensive and substantive coverage of all pillars, with the economic, trade, and investment pillars remaining pivotal in advancing relations between the two nations.
The establishment of the new Comprehensive Strategic Partnership framework will facilitate an environment that promotes the bilateral development of trust and mutual understanding, both of which are critical pillars in the long-standing bilateral relationship that has endured for decades. next. The business communities of both nations have significantly contributed to the development process, facilitating remarkable growth in bilateral trade relations between Vietnam and the United States. This accomplishment was the result of the coordinated efforts of the business and government communities of the two countries, which prioritized the prompt and efficient resolution of trade issues of the utmost importance.
Consul General of the United States in the city, Ms. Susan Burns, represents the American delegation. Ho Chi Minh stated that the robustness of the worldwide supply chain and the prosperity of the entire region are significantly influenced by the close relationship between the two economies. Simultaneously, she conveyed her optimism that the practicality and efficacy of bilateral relations would steadily improve, thereby benefiting the businesses and communities of both nations.
The forum is being held this year amidst significant transformations in the economic and social operational frameworks of nations across the globe. The global community is confronted with an unprecedented array of challenges as a result of its rapid and complex transformation: the rapid advancement of science and technology, climate change, natural disasters, epidemics, and supply chain disruptions. are imposing additional standards on international economic, commercial, and investment cooperation.
As it evolves, Vietnam is establishing new areas of cooperation.
It is anticipated that the Indo-Pacific will be the most dynamically developing region globally; however, despite the absence of new comprehensive trade agreements to adequately address risks, emerging challenges are evident throughout the area. Hence, bolstering collaboration will foster peace and prosperity not only for nations within the bloc but also for those beyond its borders.
The challenging economic climate and elevated inflation rate in the United States resulted in a substantial decline in the purchasing power of consumer goods during the initial months of 2023. Furthermore, substantial inventory reserves, elevated interest rates, and cyclical influences all contributed to a decline in Vietnam's exports to the United States during the initial months of the year.
Nevertheless, this decline is considered transitory and does not indicate a significant pattern that will persist in the foreseeable future. In recent months, export growth has resumed, and the FED has completed its interest rate hike cycle, which has contributed to a resurgence in consumer purchasing power and confidence in the United States. It is anticipated that Vietnam's conventional and robust export commodities, including textiles, furniture, footwear, and electronics, will sustain their recovery through favorable export expansion rates.
Moreover, Vietnam has been undergoing a profound transformation to become a leading manufacturing hub on the planet. Enterprises in Vietnam have manufactured a vast array of goods that are diverse in nature, priced competitively, and of progressively higher quality. Vietnam, one of the most strategic locations in the global supply chain, has attracted the attention of numerous corporations, retail and wholesale distribution channels, and geopolitical and economic instability in recent times. As a result, these entities are implementing diversification strategies to ensure a sustainable supply.
Embracing this exceptional opportunity will, nevertheless, demand substantial endeavors from manufacturing and exporting companies.
Additionally, Do Thang Hai, the Deputy Minister of Industry and Trade, opined that the formal elevation of the bilateral ties to the status of Comprehensive Strategic Partnership would furnish unparalleled prospects for the inception of innovative and novel domains of collaboration. Develop domestic capabilities to ensure Vietnam's genuine involvement in global value chains; emphasize encouraging Vietnamese enterprises to participate in the provision of raw materials, components, and equipment for applications in the energy, aviation, digital economy, semiconductor ecosystem, and artificial intelligence sectors.
"In addition to policy dialogue activities at the federal level, the Ministry of Industry and Trade prioritizes cooperation in each specific field with each state as the focal point to foster extensive cooperation and contribute to the implementation of the objectives and commitments of the senior leaders of the two countries," from the standpoint of state management. "Recently, enhancing collaboration with the states of Washington, California, Oregon, Colorado, and West Virginia has contributed to the establishment of novel frameworks for cooperation, which have effectively addressed the requirements of the business communities in both nations and facilitated trade and investment," emphasized the deputy minister.
Ms. Barbara Weisel, Managing Director at Rock Creek Global Advisors former Assistant US Trade Representative, and an authority on international trade law, also spoke at the Forum. She stated, "...the workforce is young and well-educated. Vietnam's erudition, entrepreneurial drive, and free trade infrastructure have positioned it as a prominent beneficiary of numerous nations' and corporations' efforts to safeguard their economic stability, competitiveness, and resilience through supply chain diversification.
"This supply chain shift and additional factors have contributed to Vietnam's unprecedented increase in market share in the United States." Furthermore, the United States has emerged as the foremost export market for Vietnam, contributing approximately one-third of the country's total export revenue. Nonetheless, the growth of US exports to Vietnam has been comparatively sluggish, resulting in an escalating trade deficit between the two countries; this aspect merits close observation..." Barbara Weisel stated as much.
Experts at the Forum disseminated current information regarding emerging policy trends in the United States, thereby furnishing businesses with recommendations, solutions, and guidance to facilitate the gradual development of strategies. Conduct business systematically and efficiently within the framework of interconnected challenges and opportunities. This will inspire the business communities of both nations to develop strategies for entering and expanding import-export markets, thereby fostering trade and investment exchanges that are sustainable and balanced.
The forum is widely recognized and valued by businesses for facilitating connections, establishing a supplementary channel for policy advice, exchanging effective market information and experiences, and aiding businesses in surmounting challenges and capitalizing on opportunities. Simultaneously, it affords the business communities of the two nations the chance to present state management agencies with proposals that enhance import-export operations and foster trade and investment cooperation between Vietnam and the United States.
Vietnam ranked as the tenth most significant trading partner of the United States as of August 2023, in contrast to its position of seventh largest during the corresponding period in 2022. In comparison to 2022, total import-export turnover decreased by 16.2% to approximately 79.4 billion USD (representing 2.3% of the overall US import-export turnover). Specifically, imports from the United States reached 6.3 billion USD, a 19.5% decrease from the corresponding period in 2022, while exports to the United States reached 73.0 billion USD, a 15.98% decrease from the same period in 2022. With a 66.7 billion USD export surplus to the United States, Vietnam remains the third largest export surplusing nation (following China with 181,000 USD). 8 billion USD and 100.7 billion USD for Mexico).
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