US remains key export market of Vietnam
The US will continue to be a major and important export market of Vietnam into the future, Minister of Industry and Trade Nguyen Hong Dien has said.
Economic and trade relations between Vietnam and the US have witnessed significant changes over recent years. Two-way trade turnover rose 275-fold, from $450 million in 1994 to $124 billion in 2022, Minister Dien told the media during US President Joe Biden’s visit to Vietnam from Septenber 10-11.
The US has been a partner of great importance and Vietnam’s largest importer for many years, accounting for around 30 per cent of its total export turnover.
Vietnam became the US’s eighth-largest trade partner in 2022.
With average annual trade growth of 20 per cent or higher, the US will remain Vietnam’s biggest export market in the years to come, he said.
Traditional export items of Vietnam, such as garments and textiles, wooden products, footwear, and electronics will continue to recover and post positive export growth rates.
In particular, he went on, there are many favorable conditions for the development of bilateral trade. The policy dialogue mechanism through the Vietnam - US Trade and Investment Framework Agreement (TIFA), jointly chaired by the Ministry of Industry and Trade (MoIT) and the Office of the US Trade Representative (USTR), is being effectively carried out, helping address many complex issues in bilateral economic and trade ties.
According to Minister Dien, MoIT and the US Department of Commerce (DOC) have engaged in open discussions through various channels to have Vietnam recognized as a market economy.
The ministry will continue discussions with the US regarding the possibility of applying the Generalized System of Preferences (GSP) to Vietnam.
In order to mitigate risks from disruptions and dependency, US companies are looking to diversify their supply chains, which makes it easier for Vietnam to expand its manufacturing activities and become more deeply integrated into their global value chains, the Minister said.
