HCM City (VNS/VNA) - Vietnam, an emerging leader in Asia, must proactively adapt to potential shifts in trade dynamics resulting from the policies of the new US administration, speakers said at a seminar in Ho Chi Minh City on January 8.
Speaking at the “New US Policies: Impacts on Trade and Investment” meeting, Kevin Morgan, Chairman of the US-Vietnam Business Council, said the uncertainty surrounding the new administration’s trade policies is felt not just in Vietnam, but globally.
“As Vietnam seeks to sustain its growth, it must remain vigilant and adaptable,” he noted.
Businesses and governments alike are closely monitoring how these changes might affect their trade relations with the US, he added.
“While the specifics of the new trade policies are unclear, it’s wise to prepare for various scenarios to continue business with the US,” he noted.
Vietnam’s trade surplus with the US was up over 26% year-on-year as of the end of 2024, making it the third-largest surplus with the US, after Mexico and Canada.
Cao Thi Phi Van, Deputy Director of HCM City Investment and Trade Promotion Centre (ITPC), said the significant shift in power in the US following President Donald Trump’s election will have major implications for the global economy, especially for Vietnam as one of its largest trading partners.
Vietnam is attracting substantial high-tech investments from the US, particularly in the fields of microchips and semiconductors.
Vietnam also plays a vital role in the US global supply chain, while US businesses continue to make significant contributions to Vietnam’s economic development, she added.
The seminar aimed to provide updates on these policies to better inform investors, exporters, and stakeholders regarding the future of trade and investment between the two nations.
Keith Hwang, an attorney specialising in US Customs Compliance, International Trade, Logistics, and Customs Brokerage, provided several recommendations for Vietnamese exporters aiming to penetrate the US market.
He underscored the importance of enhancing communication with importers, consignees, and transportation partners, such as freight agents and customs brokers.
He stressed the necessity of understanding three key components of US customs entry: HTS classification, valuation, and country of origin.
Vietnamese exporters must also be thoroughly prepared with the requisite data and documentation to comply with any “OGA” (Other Government Agency) import regulations, which may encompass requirements from the FDA and USDA, among others, he added.
Michael Kokalari, a chartered financial analyst and chief economist at investment management firm VinaCapital, expressed optimism regarding Vietnam’s prospects under the President-elect Trump administration.
“Concerns are being raised in various countries about the potential impact of Trump’s election on their economies. However, we believe these risks are overstated and see no indication that Trump’s election will disrupt Vietnam’s positive economic trajectory for a multitude of reasons,” Kokalari told Vietnam News in a recent interview.
Over the past two decades, Vietnam and the US have forged strong strategic and economic ties, with the US being Vietnam’s largest export market.
In September 2023, their relationship was elevated to a Comprehensive Strategic Partnership, the highest level in Vietnam’s diplomatic framework.
In the first 11 months of 2024, the total trade turnover between Vietnam and the US reached 122.4 billion USD, showing strong growth in both exports and imports.
The US is Vietnam’s largest export market with a turnover of 108.9 billion USD in 2024, up 23.9% year-on-year.
Imports from the US amounted to 13.5 billion USD, an increase of 7.3%. Vietnam’s trade surplus with the US reached 95.4 billion USD, up 26.7%.
Vietnam has become the eighth-largest trading partner of the US and the fourth-largest export market for the US in ASEAN.
The US is Vietnam’s second-largest trading partner and its largest export market. Key export items from Vietnam to the US include footwear, wooden furniture, machinery, and optical equipment.
As of November 2024, the US had over 1,400 investment projects in Vietnam, with total investment capital nearing 12 billion USD.
In HCM City, the US ranks as the third-largest investor among a total of 110 countries and territories investing in the city, with over 1.55 billion USD.
The event was organised by ITPC in coordination with the US-Vietnam Business Council and the Vietnam Innovation Institute./.
