Opportunities and hurdles for Vietnam-US trade amid changing political landscape
Society – Economy - Ngày đăng : 18:01, 08/01/2025
ITPC Deputy Director Cao Thi Phi Van highlighted that two-way trade exceeded US$132 billion last year, with Vietnam's exports to the US hitting US$119 billion, a 23.3% increase year-on-year. Meanwhile, imports from the US stood at US$13 billion, marking a 7.3% rise.
This growth has reinforced Vietnam's position as the US' eighth-largest trade partner and the fourth-largest export market in ASEAN. On the other hand, the US is Vietnam's second-largest trade partner and its biggest export market. Major Vietnamese exports 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, totaling nearly US$12 billion. In Ho Chi Minh City alone, the US ranked third among 110 countries and territories, with investments surpassing US$1.55 billion.
The US remains a key target for many Vietnamese businesses looking to expand their exports, while Vietnam attracts significant high-tech investments from the US, especially in microchips and semiconductors, to stay competitive in the global tech landscape. Van also noted that Vietnam plays a crucial role in the US global supply chain, and US companies have significantly contributed to Vietnam's economic growth.
Vietnamese Trade Counselor in the US, Do Ngoc Hung, recommended that local firms form partnerships with US importers and distributors, exploring flexible payment methods and sharing risks, particularly during the initial market entry phase.
For agricultural and food products, Hung proposed investing in cold storage facilities to set up distribution centers at major ports, helping to cut costs and improve market access.
Dr. Huynh The Du, a lecturer at Indiana University and IVI member, emphasized the strict standards of the US market, advising that Vietnamese firms must invest in technology, enhance product quality, and adopt transparency to meet the high standards required to succeed in the US.
Kevin Morgan, Chairman of the US-Vietnam Business Council, pointed out the rapid growth of trade in recent years, placing Vietnam among the leading countries with a trade surplus with the US. It is estimated that the US trade deficit with Vietnam has reached US$102 billion, posing risks to the “fair and balanced trade” goals set by President-elect Donald Trump. Therefore, Vietnamese businesses need to prepare strategies to navigate potential shifts in US trade policies and tariffs, Morgan said.