Vietnam-US: Great Import-export Potential

 

Can you talk about the results of the visit to the US by President Nguyen Minh Triet and the Vietnamese business delegation?
During the visit to the US, President Nguyen Minh Triet and the Vietnamese business delegation spent most of their time in the meetings and contacts with leading American economic groups. Agreements and contracts signed between Vietnamese and American businesses valued at nearly US$ 11 billion. This is a record so far. Most of them are big infrastructure development projects, such as sea ports, power stations, industrial zones, urban areas. There are also projects developing financial markets and institutions, ITC, education and training. During the visit, the two governments signed a trade and investment framework agreement (TIFA). This is a continuation of the bilateral trade agreement (BTA) and preparation for a free trade area (FTA).

 

Some Vietnamese companies that, due to restructuring and modernization are in need of partnership, found American companies as strategic partners and will invest jointly in major projects. There are also some Vietnamese businesses planning to buy shares of American companies and their projects. This is a new sign of Vietnamese businesses’ dynamism in international economic integration.

 

For its part, VCCI signed with the US Chamber of Commerce and Industry an agreement to establish the Vietnam-US Business Forum. It is a coordinated mechanism advising the two governments on improving business environment, completing cooperation framework and promoting trade and investment.

 

What hurdles remain in trade and investment relations between the two countries?
Presently, the trade imbalance between the two countries is a difficulty in the bilateral trade relations. Vietnam’s exports to the US are worth some US$10 billion, while imports are only some US$1.5 billion. However, with increased US investment in Vietnam, the import of American high technology and equipment will solve the problem.

 

The main hurdle for Vietnamese exporters is American technical barriers such as anti-dumping on aquatic products and the supervision mechanism on garments. Even American importers are against the supervision mechanism, as it is unfair and contrary to WTO principles. Besides, Vietnam is asking the US to lift the technical barrier on high technology exports, to promote bilateral trade relations.

 

In recent years, US investment in Vietnam remained limited as markets opened up were not in America’s strong areas. According to the WTO road map, Vietnam will soon open up service and high technology. Those are strong points and potential of American businesses. Vietnam hopes American businesses will form the vanguard of the investment flow and soon become the number one investor in Vietnam. Import-export potential between Vietnam and the US remains significant, and increased investment will accelerate trade growth between the two countries.

What should the Vietnamese government and businesses do to meet the demand of American and other foreign investors?
During the past years, Vietnamese government has made great efforts to improve the business environment and facilitate investors. I think in the coming years, with increased foreign investment, the government will accelerate administrative reform and improve the business environment. With suitable policies, Vietnam can attract more foreign investors in high technology, especially from the US. I also believe that, to increase investment in high technology, Vietnam should upgrade its human resources. Therefore, education and improved training are also urgent tasks.