PM urges US to soon recognise Việt Nam as a market economy

PM Phạm Minh Chính (in the centre) and other delegates at the Việt Nam - US Business Summit on Wednesday morning. — VNS Photo Ly Ly Cao

HÀ NỘI - In a landmark event underscoring the robust and evolving partnership between Việt Nam and the US, Prime Minister Phạm Minh Chính called on the US to recognise Việt Nam’s market economy status at the seventh Việt Nam - US Business Summit.

Organised by the Việt Nam Chamber of Commerce and Industry (VCCI), in collaboration with the American Chamber of Commerce in Hà Nội (AmCham) and the US Chamber of Commerce, the summit attracted a distinguished assembly of government leaders, business executives and international stakeholders.

Speaking on Wednesday morning, PM Chính emphasised the principles of "harmonised interests and shared risks" as the foundation for bilateral cooperation. He urged businesses from both nations to adopt a mindset of mutual understanding and shared vision, where partnerships are built on a win-win ethos that fosters collective growth, pride and happiness.

The PM also appealed for the US to promptly recognise Việt Nam as a market economy and remove outdated trade restrictions that hinder growth, including high-tech export, for mutual benefits.

PM Chính delivered a speech at the summit. — VNA/VNS Photo

The PM has also outlined Việt Nam’s commitment to advancing three key strategic breakthroughs in the near future: institutional reform, infrastructure development and human capital enhancement.

These initiatives aim to drive a significant overhaul in the institutional framework, establishing a streamlined, robust and high-performing administrative system.

This approach seeks to reduce compliance time and costs, lower input expenses for enterprises and investors, boost labour productivity, create new avenues for growth and elevate the competitiveness.

Việt Nam places a high priority on growth by rejuvenating traditional growth engines like investment, exports and consumption, alongside propelling new forces such as the digital economy, the green economy, the circular and sharing economies and the knowledge economy.

Concurrently, the country is driving forward in science and technology, fostering innovation, and cultivating emerging sectors like cloud computing, artificial intelligence, and the Internet of Things, under a mindset of "innovate to soar, create to expand and integrate to thrive".

The country is also actively pursuing significant transformative endeavours, including nuclear power plants, the North-South high-speed railway, key airports, seaports, highways and comprehensive transportation systems.

Additionally, Việt Nam is prioritising power security, constructing national data hubs and venturing into novel development realms like outer space, subterranean landscapes, and marine territories.

The PM has called upon US enterprises to bolster collaboration and investments in these crucial sectors.

PM Chính underscored the importance of private sector leadership in tackling global challenges, from energy security to climate change.

Representatives from companies and organisations share their thoughts at the discussion session. — VNS Photo Ly Ly Cao

Evolution of a strategic relationship

This year’s summit, held under the theme 'Policies and Approaches to Ensure Mutual Beneficial Commercial Relations' marked the first major business dialogue since the historic elevation of Việt Nam - US relations to a Comprehensive Strategic Partnership in September 2023.

Over the past year, bilateral trade reached new heights, with two-way turnover hitting US$110.8 billion in 2023 and surpassing $110.9 billion in the first ten months of 2024.

Việt Nam has become a pivotal player in global supply chains, contributing significantly to sectors such as high technology, renewable energy and infrastructure development. Meanwhile, US businesses have increasingly invested in transformative projects, reflecting their commitment to Việt Nam’s economic transition.

US Secretary of State Antony Blinken, who attended virtually, highlighted the mutual benefits of the partnership.

“The cooperation between our countries and the partnerships between our businesses are vibrant, robust and stronger than ever. And they are delivering real benefits for Americans and Vietnamese alike. That is something I have seen first hand in the three trips that I’ve made to Việt Nam as Secretary,” Blinken said.

His sentiments were echoed by Joseph Uddo, Chair of AmCham, who pointed to the summit as a critical platform for shaping policy and removing barriers to investment.

“With last year’s relationship upgrade and with the change in government in the US, this is a critical time and wonderful opportunity to work on how to also upgrade the policy framework to attract new players and help current investors and businesses grow,” Uddon said.

“Progress on the key issues raised at today’s summit will improve business conditions that strengthen the private sector, ensure economic and social development and promote prosperity here in Việt Nam.”

Vietnamese and American delegates discussed a range of forward-looking topics, including digital economy expansion, supply chain resilience and green energy development.

The emphasis on practical, high-impact initiatives was apparent, with both sides committing to large-scale projects in renewable energy, high-tech manufacturing and logistics.

Việt Nam ranks 34th globally and stands out as a hub for foreign direct investment (FDI). With over $400 billion in FDI to date and ambitious goals to attract $40 billion more this year, the country has positioned itself as an essential partner for American enterprises.