Hanoi (VNA) – The historic Vietnam visit by US President Joe Biden and the upgrade of the bilateral relationship to a comprehensive strategic partnership will create unprecedented opportunities to promote new and breakthrough cooperation areas, and to promote Vietnam’s engagement in global value chains, said Minister of Industry and Trade Nguyen Hong Dien.
Party General Secretary Nguyen Phu Trong and US President Joe Biden pose for a photo before their talks. (Photo: VNA)
In a recent interview, Dien said Biden's State-level visit to Vietnam on September 10-11 marked the first by a US President made at the invitation of the General Secretary of the Communist Party of Vietnam and the continuation of the nearly 30-year tradition of bilateral diplomatic ties characterised by significant developments of economic cooperation.
Over the past three decades, two-way trade has soared over 275 times from 450 million USD to 124 billion USD last year. The US has been the leading important partner and the biggest importer of Vietnam for many years, accounting for around 30% of the country's total export turnover. In 2022, Vietnam became the eighth biggest trade partner of the US.
An important characteristic of Vietnam- US trade relations is that the two economies are complementary, with the US having demand for Vietnam’s signature farm produce, apparel, leather and footwear, electronics, machinery, and equipment while supplying cotton, animal feed, corn, soya bean, chemicals, machinery, and technology to the Southeast Asian country.
Minister of Industry and Trade Nguyen Hong Dien (Photo: VietnamPlus) Increasing imports of US products helps make Vietnam’s supply chain more transparent as input materials for production have clear and certified origins.
With the current average trade growth rate of over 20% yearly, the US continues to be Vietnam's largest export market now and in the coming years, Dien said.
In the first eight months of 2023, the US’s economic difficulties and high inflation rate caused the purchasing power of consumer goods in the country to decrease significantly.
Rising inventory was also a reason why Vietnam's exports to the US fell in the first months of the year.
However, the decrease is temporary and not a major trend in the coming time. Vietnam's exports have grown again in recent months, signaling a great recovery in 2023. Many organisations said the Federal Reserve (Fed) is in its final stage of the cycle of increasing interest rates, which will increase purchasing power and consumer confidence.
Vietnam's key export products such as textiles, furniture, footwear, and electronics are assessed to continue to recover with positive growth rates.
In recent years, Vietnam has been transforming strongly to become a major global manufacturing centre. Vietnamese enterprises have produced products of diverse types, competitive prices, and increasingly improved quality.
Furthermore, after the COVID-19 pandemic and geopolitical-economic instability, many corporations, retail, and wholesale distribution channels are promoting strategies for diversifying suppliers and choosing Vietnam as a strategic location in their global supply chain.
“It’s a great opportunity for Vietnamese enterprises,” Dien said, adding that seizing the opportunity will also require them to make great efforts.
Vietnam-US trade revenue increases over 275 times from 1994 to 2022. (Photo: VietnamPlus)
Amid the current global economic difficulties, consumer needs and tastes in Vietnam’s export market in general and in the US, in particular, have changed much, especially in terms of product price, quality, and requirements related to environmental protection and sustainable development.
Vietnamese businesses have to quickly adapt to those changes. In addition, they need to actively participate in trade promotion programmes, and exhibitions, boost connections with relevant agencies, develop brands, and build trust with US customers.
To develop the market, in addition to cooperating with large importers and distribution channels, businesses also need to diversify consumer groups and search for niche markets to minimise risks./.
