Great opportunities of Vietnamese-American trade cooperation

Update: 04-03-2019 | 11:13:08

Over the past 25 years, the two-way trade turnover between Vietnam and the US has increased nearly 120 times, from 450 million USD in 1994 to over 60 billion USD in 2018. It is worth mentioning, along with the relationship between the two sides increasingly In recent times, the trade and investment activities between Vietnam and the United States have many opportunities to grow even higher in the coming time.

Exports of Binh Duong enterprises into the United States have been increasing. In the photo: Ceramics are produced according to orders of Costco partner (USA) at Phuoc Du Long Ceramics Company.

Trading activities on both sides are getting bigger and bigger

Information from the Ministry of Industry and Trade, since Vietnam and the United States signed the Bilateral Trade Agreement (BTA) in July 2000, two-way trade between the two countries has experienced outstanding growth. In 2018, Vietnam's export turnover to the US market reached 47.5 billion USD, an increase of 14.2% over the previous year; The US market accounts for 19.52% of the country's total export turnover.

On the other side, 2018 also recorded a rapid growth in Vietnam's import from the United States. In particular, Vietnam imported US $ 12.753 billion worth of goods from the United States, an increase of 36.4% compared to 2017 (US $ 9.349 billion in 2017). President of the American Trade Association in Hanoi Natasha Ansell said the normalization of relations between Vietnam and the United States has opened opportunities for US businesses to develop in the Vietnamese market. Highlights, investment activities of GE, CocaCola, Microsoft, IBM, Nike, ExxonMobil etc. have helped Vietnam to have a foothold in the global supply chain.

For Binh Duong, businesses in the province also made significant contributions to the country's export chart to the United States. The main export products of the province through this market are leather shoes, textiles, wood, ceramics ... Sharing the importance of the US market, Mr. Nguyen Van Le, Vice Chairman of Binh Dinh Leather and Footwear Association Duong said that since the BTA was signed, many industry insiders predicted that the US would be the main market of Vietnam's footwear industry. The commercial development process of this industry between the two countries over the years has proved it. Therefore, the association always wants to strengthen goods to this market to increase production and export turnover in the future.

Meanwhile, Mr. Vuong Sieu Tin, Vice Chairman of Binh Duong Ceramics Association, also said that at present, most of the large ceramic manufacturing companies (garden) in the province such as Phuoc Du Long and Kim Phat, Minh Phat and Tan Toan Phat all view the United States as a key export market. The export to the United States of Binh Duong ceramics enterprises started from more than 10 years ago through major European distributors. However, in recent years, due to increasing trade liberalization, most enterprises in the province have been able to export directly to US partners and participate in dozens of trade fairs and exhibitions. United States organized.

“Phuoc Du Long Company exports about 350 - 400 containers per year to the US market, earning over 3 million USD and we aim to achieve more than 1,000 containers in the near future. It can be said that the United States has gradually become our main export market, ” said Mr. Tin excitedly.

Enhancing investment cooperation

Up to now, Binh Duong has attracted more than 900 million USD of investment capital from the United States. It is also ranked 6th in terms of capital among countries and territories invested in Binh Duong. Most investment projects of US enterprises in Binh Duong focus on industries with high technology content, less labor-intensive and environmentally friendly.

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Trade surplus between Vietnam and the United States in the period of 2007-2018

According to the general assessment of US enterprises, Binh Duong is one of the best infrastructure systems in Vietnam today, along with abundant human resources and a dynamic leadership team, market demand, willing to support businesses with a high sense of responsibility. In addition, the establishment of a factory in Binh Duong also served very well the need to expand the market, seeking new growth opportunities for businesses because Binh Duong has a favorable geographical position, located in the Southern key Economic Zone.

Recognizing the potential of investment cooperation between Vietnam and the United States in early November 2015, the US Chamber of Commerce in Vietnam (Am Cham Vietnam) cooperated with Binh Duong People's Committee to open a representative office of Vietnam - US business community at Becamex IDC building (Thu Dau Mot City). Ms. Mai Hoang, Chairman of Am Cham Vietnam, said that in addition to bilateral cooperation programs, Vietnam and the United States have joined many international organizations and important trade agreements, so the need to understand the environment Investment schools, partners and business opportunities of US businesses in Vietnam in general and Binh Duong in particular in the coming time are very high.

With the two countries expanding their relations, US businesses are increasingly looking for opportunities to do business in Vietnam. It is also a solid basis to place greater expectations on trade and investment relations between the two countries in the future. Ms. Virginia B.Foote, co-chair of the Vietnam Business Forum Alliance (VBF), said: "The wave of investment by US businesses into Vietnam is showing signs of increasing recently, especially in the context of a shift of capital flows from China and some East Asian countries to Vietnam in the past year. We believe that with the infrastructure invested synchronously, the government always tries its best to reform the administration, Binh Duong will be an attractive destination of investment capital from the United States in particular and foreign investors in general. "

Reported by Khanh Vinh – Translated by Vi Bao

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Great opportunities of Vietnamese-American trade cooperation

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