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The Prime Minister Calls on US Businesses to Enhance Trade and Investment Ties with Vietnam

2 December, 2024

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Mr. Pham Tan Cong, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), remarked that over the course of six successful conferences, the event has become the most anticipated gathering for businesses from both countries. Enterprises from Vietnam and the US particularly acknowledged the strong commitment and support from their respective governments in promoting bilateral economic and trade relations.

VIETNAM: A KEY PARTNER OF THE UNITED STATES

According to statistics presented at the conference, the US is currently Vietnam’s second-largest trading partner, its largest export market, and one of its top investors. Vietnam, on the other hand, has risen to become one of the top ten trading partners of the US. In 2023, two-way trade reached a record high of 110.8 billion USD, and in the first ten months of 2024, it stood at 110.9 billion USD. Vietnam plays a crucial role in the US global supply chain.

In terms of investment, as of October 2024, the US had 1,400 FDI projects in Vietnam with a total registered capital of nearly 12 billion USD, ranking 11th out of 148 countries and territories investing in the country.

Vietnamese companies, such as FPT and Vinfast, are also expanding their operations in the US, creating mutually beneficial interlaced interests.

Highlighting Vietnam’s recent economic achievements, Mr. Cong noted that despite global economic fluctuations, Vietnam has risen to 35th among the top 40 economies in the world. It is also ranked among the top 20 countries in terms of foreign investment attraction and trade import-export turnover. In the Global Innovation Index, Vietnam moved up two places to 44th out of 133 countries and economies.

Vietnam’s economy has maintained stability, with a relatively high GDP growth rate of 5% in 2023, expected to rise above 7% in 2024. “US businesses and investors have made positive contributions to these economic achievements,” Mr. Cong emphasized.

Echoing this sentiment, US Secretary of State Antony Blinken affirmed that in a time of global transformation, Vietnam is playing an increasingly important role on the world stage. Vietnam is also a significant partner for the US government and American businesses.

Mr. Joseph Uddo, Chairman of AmCham, viewed the upgraded bilateral relationship last year and the change in US administration as a crucial juncture and a golden opportunity to improve the policy framework, attract new investors, and support existing investors and businesses operating in Vietnam to continue thriving.

Addressing the important issues raised at the conference will enhance the business environment, boost the private sector, ensure economic and social development, and promote prosperity in Vietnam. Major donors have expressed their confidence in the country’s development prospects.

CALL FOR ENHANCED COOPERATION AND SUPPORT FROM THE US

Given the current geopolitical challenges, trade tensions, political upheavals, and shifts in global supply chains, both Vietnam and the US face significant obstacles to sustainable development. Therefore, according to VCCI’s leaders, we need to adopt a flexible and creative approach.

The conference serves as a platform for both sides to explore new directions, identify potential cooperation opportunities, and overcome present challenges, particularly in the following areas: promoting bilateral trade and investment, unleashing the potential of the digital economy, ensuring energy security, and maintaining competitiveness.

Speaking at the conference, Prime Minister Pham Minh Chinh emphasized that trade is the most successful and extensive area of cooperation between the two countries. Trade promotion goes hand in hand with economic and investment facilitation. While US investment in Vietnam is still modest compared to its potential, it represents a significant effort that has brought benefits to both peoples.

After nearly four decades of reform, Vietnam has transformed from a country under siege and embargo to one that now enjoys diplomatic relations with nearly 200 countries. It has established Comprehensive Strategic Partnership, Strategic Partnership, and Comprehensive Partnership relations with 32 countries and signed 17 free trade agreements with more than 60 major economies worldwide.

Looking ahead, Vietnam will continue to focus on three strategic breakthroughs in institutions, infrastructure, and human resources. It will bring about significant institutional reforms, building a lean, efficient, and effective government apparatus with the spirit of “open institutions, seamless infrastructure, and smart governance” to reduce compliance time and costs for businesses and investors. Simultaneously, it will increase labor productivity, create new development spaces, and enhance the competitiveness of goods, enterprises, and the economy.

Vietnam prioritizes growth, revitalizing traditional growth drivers (investment, exports, and consumption), and fostering new ones such as the digital economy, green economy, circular economy, sharing economy, and knowledge-based economy. Additionally, it promotes science, technology, and innovation, developing emerging sectors like cloud computing, artificial intelligence, and the Internet of Things, with the spirit of “innovating to soar high and creating to reach far, integrating to develop.”

Prime Minister Pham Minh Chinh addressing the conference. Photo: VGP.

Vietnam is also focusing on implementing large-scale projects that can “change the state and turn the tide,” such as nuclear power plants, the North-South high-speed railway, large airports and seaports, a high-speed road network, developing all five types of transport, and international transit centers. It is ensuring sufficient energy supply, building national data centers, and exploring new development spaces like space, underground, and marine resources.

The Prime Minister called on US businesses to strengthen cooperation and investment in Vietnam in these priority areas. On this occasion, he also requested that the US promptly recognize Vietnam’s market economy status and lift restrictions on high-tech exports to Vietnam, for the mutual benefit of both countries and their peoples, including addressing war consequences, bomb and mine clearance, and Agent Orange/dioxin remediation in Vietnam.

Additionally, the Prime Minister asked the US to enhance cooperation and support in policy consultation, preferential capital allocation, high-quality human resource training, and advanced technology transfer to improve modern governance capabilities.

“This conference will be even more meaningful if it translates into specific and measurable programs, projects, and products that benefit businesses and people, contributing to the Vietnam-US relationship and promoting peace, stability, development, and prosperity in the region and the world,” concluded the Prime Minister.