Cooperation advantages from US-ASEAN relations

The economic landscape of Vietnam has undergone remarkable transformations, positioning it as one of the most dynamic and rapidly growing economies in Southeast Asia. The country has increasingly become a key player in the global market, attracting foreign direct investment from around the world, with the United States standing out as one of the most significant contributors.

Vaibhav Saxena, foreign counsel, Vilaf

As US companies seek to diversify their global operations and establish a more resilient supply chain, Vietnam has emerged as a crucial destination for investment. Furthermore, as part of the broader US strategy for engaging with the Asia-Pacific region, the US-ASEAN partnership holds substantial promise for both the US and ASEAN countries, with Vietnam remaining as a favourable priority destination.

Vietnam’s economic trajectory has made it one of the most attractive investment destinations in Southeast Asia. Over the past two decades, the country has moved from an agrarian-based economy to one of the leading industrial and manufacturing hubs. Several factors have contributed to this remarkable transformation, such as market-friendly reforms, robust economic growth, trade agreements, and an increasingly favourable business environment.

The Vietnamese government has actively sought to improve the business environment for foreign investors by addressing challenges such as corruption, regulatory uncertainty, and infrastructure gaps. In recent years, Vietnam has invested heavily in its infrastructure, particularly in transportation and logistics, to make the country more attractive for foreign investors.

The US has recognised Vietnam’s potential and has significantly increased its investment in the country across various sectors, including manufacturing, technology, retail, energy, and services.

The manufacturing sector, particularly in electronics, textiles, semiconductors, finance, energy, and footwear, has been a major area of focus. US companies like Intel, Nike, and Coca-Cola have made substantial investments in the country. Additionally, technology is an emerging sector, with US companies such as Microsoft, Google, and Apple expanding their presence in Vietnam, creating new opportunities for innovation and partnership.

On the other hand, US goods trade with Vietnam totalled an estimated $149.6 billion in 2024 while its goods exports to Vietnam in 2024 were $13.1 billion, up 32.9 per cent from 2023.

This growth is a clear indicator of how the US is integrating its economic strategy with that of Vietnam, paving the way for deeper and more diversified business engagements.

The US-ASEAN business trip represents an important opportunity to further strengthen the economic and trade ties between the United States and the ASEAN region. The ASEAN bloc collectively represents a market of nearly 700 million people, with a combined GDP of over $3.5 trillion, making it one of the most important trading regions for the US.

An official business trip would be an effective way to address shared economic goals, explore new investment opportunities, and tackle regional challenges. It would serve as a platform for US businesses to explore new markets and strengthen existing trade relationships within ASEAN countries.

Key industries such as manufacturing, technology, agriculture, and energy would likely be high on the agenda. A US-ASEAN business trip would allow US companies to forge new partnerships, engage in business matchmaking events, and explore potential joint ventures with ASEAN counterparts.

In addition, ASEAN nations, including Vietnam, face significant challenges related to environmental sustainability, such as pollution, waste management, and the need for clean energy solutions. US companies specialising in renewable energy, sustainable infrastructure, and green technology could play a vital role in helping ASEAN countries transition towards a more sustainable future. Collaborative efforts in these areas would align with both the US and ASEAN’s long-term goals to tackle climate change.

With digital transformation accelerating across Southeast Asia, there is significant potential for US companies to collaborate with ASEAN counterparts in fields like AI, cybersecurity, cloud computing, and e-commerce. The US-ASEAN business trip would provide a platform for US tech giants to share knowledge, collaborate on innovation, and invest in digital infrastructure in ASEAN countries, particularly in Vietnam.

As part of the broader US-ASEAN business association, specific attention could be given to strengthening US-Vietnam collaboration in several areas.

Given Vietnam’s growing reputation as a hub for technology and innovation, US companies could focus on strengthening partnerships in this sector. Collaborative ventures in AI, fintech, e-commerce, and cybersecurity can drive significant growth in both markets.

Meanwhile, Vietnam’s infrastructure needs are vast, particularly in the areas of transportation, energy, and logistics. US companies with expertise in engineering, construction, and renewable energy have an opportunity to invest in large-scale infrastructure projects that could benefit both countries.

Meanwhile, the healthcare sector in Vietnam offers ample opportunities for US companies to collaborate in areas such as pharmaceuticals, biotechnology, and healthcare infrastructure. Strengthening healthcare systems through joint ventures and technology transfer can contribute to the long-term health and prosperity of the region.

The growing US investment in Vietnam and the broader US-ASEAN business meet highlight the increasing importance of economic ties between the United States and Southeast Asia. For Vietnam, a dynamic and rapidly growing economy, the benefits of greater US investment are clear: job creation, access to advanced technologies, boosting investments and enhanced trade opportunities.

For the US, Vietnam represents a critical market in the region with vast potential for future growth while tackling shared challenges and seizing emerging opportunities in an ever-evolving global landscape.

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