Investments

The Evolving Trade Dynamics: US-Vietnam Bilateral Trade Nears $90 Billion Landmark

The latest figures from the Ministry of Industry and Trade reveal a robust bilateral trade relationship between Vietnam and the United States. In the first eight months of 2024, two-way trade between the nations soared to $87.7 billion, showcasing significant growth in both export and import activities.

Administrator

26 September, 2024

General Secretary and President To Lam receives Dr. Brendan Nelson, Senior Vice President of Boeing and President of Boeing Global. (Photo: VNA)

Trade between Vietnam and the United States has witnessed robust growth in recent times. According to statistics from the Ministry of Industry and Trade, in the first eight months of 2024, Vietnam’s exports to the US reached approximately $77.9 billion, accounting for 29.4% of the country’s total export turnover and marking a significant 25.4% increase compared to the same period last year (which saw a 19% decline).

“The US remains our largest export market, and this trend continued in the past eight months,” said a representative from the Ministry of Industry and Trade. During this period, Vietnam’s imports from the US reached $9.78 billion, a 6.9% increase compared to the previous year.

Thus, in the first eight months of 2024, two-way trade between Vietnam and the US neared $87.7 billion, with strong growth in both export and import turnover.

A representative from the Vietnam Trade Office in the US analyzed that there are several reasons for the continuous growth in bilateral trade, even amidst a volatile global context. Firstly, the relationship between the two countries has been flourishing. In 2013, the countries established a Comprehensive Partnership, and in 2023, they officially upgraded their relationship to a Comprehensive Strategic Partnership.

Additionally, Vietnamese goods have become increasingly popular in the US market due to consistent improvements in quality, adherence to trends, and competitive pricing. Moreover, changes in the supply chain and investment relocation waves have contributed to enhancing the production capacity of Vietnamese enterprises. This has simultaneously created opportunities and room for Vietnamese goods to increase their exports to the world, particularly to the US market.

Some of the top exports from Vietnam to the US include computers, electronic products, and components; machinery, equipment, tools, and spare parts; textiles, footwear, and agricultural products. In return, Vietnam also imports a large volume of technological equipment, production materials, and agricultural products from the US, which contribute to the industrialization process and enhance domestic production capacity.

Vu Ba Phu, Director of the Trade Promotion Agency (under the Ministry of Industry and Trade), stated that the upgrade of bilateral relations to a Comprehensive Strategic Partnership holds great significance. It lays a solid foundation for substantial cooperation between the two countries across all pillars, with the economic, trade, and investment pillar continuing to serve as the central driving force for bilateral relations.

“The US is Vietnam’s second-largest trading partner for many consecutive years, and our exports to the US are very diverse and abundant. It is expected that the two-way trade turnover in 2024 will continue to grow and achieve positive results,” said Vu Ba Phu.

Processing seafood for export. (Photo: VNA)

To further boost Vietnam’s exports to the US, experts suggest that government agencies should enhance their efforts in providing information and legal support to businesses, as well as streamline administrative procedures related to exports. Additionally, improving the quality and infrastructure of logistics services is crucial to reducing transportation costs and time, thereby enhancing the competitiveness of Vietnamese goods in the US market.

Establishing and maintaining training programs and supporting businesses in improving product quality and complying with US standards and regulations are also vital. Businesses need to be equipped with the tools and knowledge to meet the demanding requirements of this market, from enhancing production processes to improving packaging and marketing strategies.

Experts also advise enterprises to proactively develop effective export strategies by researching and understanding market trends and US consumer preferences. Participating in international trade fairs and business events offers Vietnamese enterprises opportunities to promote their brands and establish connections with potential partners and distributors in the US.

Duc Duy