A street vendor walks along West Lake in Hanoi. — AFP
HO CHI MINH CITY: Vietnam has become a major partner for the US government and businesses, serving as a key player in global supply chains due to its “entrepreneurial workforce, strategic location, and a dynamic network of trade ties”, says a US diplomat.
Speaking at the Vietnam-US Cooperation Forum 2024 last Friday, Anne Benjaminson, acting consul general at the US consulate in Ho Chi Minh City, said that the economic relationship between the two nations is “strong, forward-looking, and positive”.
“Our supply-chain linkages with Vietnam are not a one-way street – for example, Vietnam imports American-made semiconductors, which are tested and packaged here in factories across Vietnam.
“These linkages demonstrate just how interconnected our two economies have become and how important bilateral trade is for global supply chain resiliency and our collective prosperity.
“We both realise that trade must go both ways, and we invest in each other’s economies as we purchase each other’s goods.
“Supply chains can’t be resilient if they are not sustainable. That is why we are working across the US Mission to accelerate Vietnam’s clean-energy transition,” she said.
The United States is partnering with Vietnam to enhance energy planning, attract private investment in clean energy, and fund feasibility studies for expanding electricity infrastructure and battery storage technologies, according to Benjaminson.
Eugene Laney, president and chief executive of the American Association of Exporters and Importers, said, over the past five years Vietnam has emerged as an appealing destination for American businesses, driven by the expansion of its middle class, increasing income levels, and evolving consumer preferences.
“Vietnam has been recognised as a viable alternative sourcing and selling base for US companies,” he said. “With a population approaching 100 million, the nation presents a substantial consumer base for US enterprises to engage with.”
Ta Hoang Linh, director of the European-American Market Department at the Industry and Trade Ministry said Vietnam is now the eighth-largest trading partner and the fourth-largest export market for the United States within the Asean region.
Meanwhile, the United States stands as Vietnam’s second-largest trading partner and primary export market, he added.
Juan Pablo Feregrino of the US Agency for International Development said the Vietnam-US relationship is experiencing significant growth across various sectors.
Both public and private entities in the United States are keen to enhance collaboration with Vietnam in areas aligned with current sustainable development trends, such as digital economy, eCommerce, energy, healthcare, education, and financial services, he added.
While the opportunities are promising, Benjaminson also acknowledged challenges in the business environment in Vietnam.
“We are concerned about widespread bureaucratic delays and insufficient progress in the clean-energy transition, which could threaten Vietnam’s security, sustainability, and ability to attract foreign direct investment,” she said.
According to data from the US Census Bureau, as of October, Vietnam is the United States’ eighth largest trading partner, with a total trade turnover of US$123.2bil, up 19.3% from 2023. — Viet Nam News/ANN
