Top leader’s trip expected to open up more opportunities for Vietnam-US trade ties

Workers process shrimp for export at Duyen Hai Economic Development Company in Ho Chi Minh City. (Photo: VNA)

According to trade experts, the economic - trade cooperation mechanism between the two countries has witnessed important developments, including their bilateral trade agreement signed in 2000, the permanent normal trade relations that the US granted for Vietnam in 2006, and Vietnam’s accession to the World Trade Organisation in 2006.

The two countries signed the Trade and Investment Framework Agreement (TIFA) in 2007, established the Vietnam - US Comprehensive Partnership in 2013, and signed an action plan towards a harmonious and sustainable trade balance in 2019. They also participated in the consultation on the Indo-Pacific Economic Framework for Prosperity (IPEF) in 2022.

Workers at Tinh Loi Garment Company in the northern province of Hai Duong make products for export. (Photo: VNA

According to experts, over the years, the US has always been one of Vietnam's largest investors with nearly 1,150 active projects with a total registered capital of more than 10.3 billion USD, ranking 11th out of the 141 economies investing in Vietnam.

In addition, increasing cooperation and engagement between Vietnam and US states including Oregon, West Virginia, Maryland, Virginia, and California have helped establish comprehensive cooperation frameworks, facilitating trade and investment exchanges in areas.

Businesses from the two countries have also promoted information sharing on potential opportunities.

According to the General Statistics Office, in the first eight months of 2024, Vietnam's export turnover of goods to the US reached 77.9 billion USD, up 25.4% compared to the same period last year; and import turnover from the US to Vietnam reached 9.8 billion USD, up 6.9%.

Notably, the US is Vietnam's largest export market with an estimated turnover of 77.9 billion USD.

Vietnam’s trade surplus with the US is estimated at 68.1 billion USD, up 28.6% over the same period in 2023.

At a meeting with Assistant US Trade Representative (USTR) for Southeast Asia and the Pacific Sarah Elleman, Deputy Minister of Industry and Trade Nguyen Hoang Long spoke highly of the close, active, and effective cooperation of the USTR in further promoting Vietnam-US trade and investment relations as well as the role of the TIFA Council in promptly discussing arising issues, strengthening bilateral economic - trade - investment relations for the benefit of businesses and people of the two countries.

Long affirmed that Vietnam always considers the US a leading important partner.

He said intellectual property will be one of the important contents of the economic - trade cooperation pillar between the two sides in the coming time, especially in the context that Vietnam and the US have upgraded their relations to a Comprehensive Strategic Partnership.

Long proposed that the two countries strengthen policy exchanges, consolidate strategic trust, and create a solid foundation to promote economic, trade and investment relations through the TIFA Council's dialogue mechanism.

For her part, Sarah Elleman highly valued Vietnam's position and role, affirming the principle of trade exchange must bring sustainable benefits and values with priorities given to effective investment and environmental protection, thereby creating new momentum for the development of economic, trade, and investment relations between the two countries.

Recently, a US trade delegation of 100 participants, including 35 business representatives and officials from the departments of agriculture of nine states, visited Vietnam to explore cooperation opportunities between the two countries.

This marks the largest-ever agricultural trade mission from the US to Vietnam and was led by Under Secretary for Trade and Foreign Agricultural Affairs Alexis Taylor, in celebration of the first anniversary of the Comprehensive Strategic Partnership between Vietnam and the US.

Taylor noted that this is her second visit to Vietnam in two years. The mission aims to connect with key importers via business-to-business meetings and to gain insights into local and regional market conditions through site visits and discussions with industry experts and government officials in Hanoi and Ho Chi Minh City.

She said the Southeast Asian market holds great opportunities for US exporters. Vietnamese consumers are increasingly interested in US products to meet the growing demand in the food processing, retail, and restaurant industries with the presence of many high-quality US products such as nuts, fresh fruits, chicken, beef, and pork.

A representative of the European-American Market Department under the Ministry of Industry and Trade said that after the COVID-19 pandemic and recent geopolitical-economic instability, many corporations, retailers, and wholesale distributors are diversifying strategies to ensure sustainable supply sources. Many of them have chosen Vietnam as one of the strategic locations in the global supply chain.

In particular, the Vietnam visit by US President Joe Biden in 2023 and the upgrade of the Vietnam-US relations will create unprecedented opportunities to promote new and breakthrough areas of cooperation./.