Garments are one of Vietnam's key export items to the US. Photo: VOV

Minister Councilor Bui Huy Son of the Vietnamese Embassy in the US in charge of the Vietnamese Trade Office there said Vietnam’s exports to the US achieved a growth rate of over 24%, while US exports to Vietnam also grew by nearly 14%, as reported by VOV.

This is a very positive result, demonstrating the ability to seize and take advantage of market opportunities between the two economies, Son told Washington-based VOV correspondents in an interview recently.

According to the official, the import-export goods between the two sides are highly complementary.

Vietnam mainly exports to the US electronics and components, garments, footwear, and farm produce, including seafood, while it imports from the market raw materials for production, such as cotton, timber, pharmaceuticals, and temperate fruits, said Son.

He admitted that it is not easy to obtain such impressive growth in bilateral trade as the COVID-19 outbreak disrupted the global supply chain.

This result was even more significant when at the beginning of 2021 the two countries’ trade was overshadowed by the US’ initiation of investigations into Vietnam’s foreign exchange control policy and timber traceability.

Photo: Vietnam Insider

Relevant agencies of the two sides coordinated well in making clear issues of mutual concern, and the US finally did not impose tariffs following these two investigations.

Son anticipated that the two economies would continue to recover considerably in 2022, paving the way for them to expand bilateral trade.

However, he warned there would be many unpredictable factors, such as the complicated nature of COVID-19, high inflation in the US, as well as the resilience of other economies engaging in the global supply chain.

In that context, he suggested the two sides continue to maintain dialogue, share information, and further enhance mutual understanding to promptly detect and deal with arising problems.

It’s important that businesses should closely monitor market developments, take advantage of the US’ strong economic recovery and meet its legal traceability requirements to avoid lawsuits, he said.

Vietnam’s biggest importer of wood products

Speaking at the forum last mid-November, Ngo Sy Hoai, Vice Chairman of the Association of Vietnam Timber and Forest Products, said Vietnam is the biggest exporter of wood products to the US.

The Southeast Asian nation is also the second biggest importer of US wood materials, after China, he added.

Photo: VNA

The wood sector has aimed to rake in $10 billion from exports to the US. However, the actual value is likely to stay at only $8 billion this year due to the impacts of Covid-19, Hoai noted.

He suggested Vietnamese companies pay more attention to US regulations on legal logging to prove that their materials were not illegally cut.

Former Vietnam Ambassador to the US Pham Quang Vinh said although the US cannot come back to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the country has made economic initiatives in digital trade, infrastructure, and energy, which would bring about new potential for the partnership between Vietnam and the US.

The two countries could consider another bilateral free trade agreement based on the existing commitments, he suggested.

Vietnam-US Trade Development Prospects

According to Deputy Minister of Industry and Trade Do Thang Hai, despite the effects of the pandemic that disrupted the global supply chain, bilateral trade and investment between Vietnam and the US have enjoyed impressive growth. The US continues to be Vietnam's top important partner in all aspects of cooperation. The US ranks 11th among investors in Vietnam, most of the large US corporations have a presence in Vietnam.

A survey by Amcham just released shows that nearly 80% of US businesses have a positive assessment of medium and long-term prospects in Vietnam. In which, nearly 30% of US companies rated very positively about the medium and long-term prospects, and had investment plans to expand production and business. Along with that, nearly 50% of the assessments are positive, they plan to stay or can invest more.

Photo: VNA

Mary Tarnowka, executive director of AmCham Vietnam, said that up to now, Vietnamese companies and AmCham members have overcome difficulties, thanks to the government's efforts to bring life back to the new normal.

“We see the number of AmCham members continue to grow. Many companies expressed their desire to invest more in Vietnam. I think Vietnam is still an attractive destination for the manufacturing industry because companies want to diversify their supply chains,” said Mary Tarnowka.

Sharing about some potential investment fields of US businesses in Vietnam in the near future, Marie Damour, Chargé d'Affaires at the US Embassy in Vietnam said that they are energy, aviation, healthcare, technology.

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