More consideration lent to US investment

September 29, 2023 | 13:00
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Vietnam has underlined the need to formulate a joint action plan with the United States for its new bilateral framework in the hope of boosting trade and investment ties, particularly in high-tech cooperation.
More consideration lent to US investment
Photo Le Toan

Just a week after Vietnam and the US elevated their bilateral relations to a comprehensive strategic partnership, Prime Minister Pham Minh Chinh paid a working trip to the US to attend the 78th session of the UN General Assembly where he underlined Vietnam’s contributions and commitments to the UN’s activities, and met with UN Secretary-General António Guterres.

In the US, he also met with US Vice President Kamala Harris, leaders of the US Congress, the national security advisor, and several members of the US cabinet. He also visited the New York Stock Exchange where he knocked the gavel to open a trading session.

He underlined the need for both nations to focus on materialising the new cooperation framework into specific strategies, projects, and business cooperation. Noting priorities to be implemented, the PM said both nations must continue to prioritise resources for realising commitments in the joint leaders’ statement on elevating US-Vietnam relations. Vietnam wants the US to support it in building “a strong, independent, self-reliant, and prosperous Vietnam,” as jointly wished by the two sides.

What is more, the two nations must strengthen mutual understanding, and build up and consolidate political trust between both sides’ leaders, political circles, and people. They also need to increase exchanges and contacts between the parliament and political parties, while expanding exchanges in all the sectors of interested to both sides, and furthering people-to-people exchanges.

Additionally, Vietnam and the US need to consider economic, trade, and investment cooperation as the crucial momentum and an “eternal impetus” for boosting bilateral relations.

The US is suggested to pay more attention to providing practical support for Vietnamese enterprises to approach modern technology and governance practices, and develop models of green economy and circular economy meeting international standards.

“Vietnam encourages and creates the best conditions for US companies to invest and develop big projects, especially in the manufacturing industry and expansion of supply chains in Vietnam,” PM Chinh said. “Vietnam will continue implementing strategic breakthroughs in institutions, infrastructure, and human resources, while standing ready to conduct exchanges and combination with the US to facilitate US economic, trade, and investment cooperation.”

Vietnam and the US also need to soon complete new cooperation frameworks for a stronger comprehensive partnership. “Sci-tech and innovation will be a new breakthrough in unlimited cooperation. Focus will be laid on digital technology, the semiconductor ecosystem, AI, energy transition, biotechnology, health, pharmacy, and human resources training,” Chinh added.

While meeting with US Secretary of Commerce Gina Raimondo, he also suggested that to effectively implement the newly upgraded partnership, the Department of Commerce should recognise Vietnam’s market economy status, and continue increasing bilateral economic and trade ties, especially encouraging US high-tech firms to do business in Vietnam.

Earlier on September 8, the US noted that Vietnam had officially requested the review of its market economy status. “The US will review Vietnam’s request as expeditiously as possible, in accordance with US law,” said a joint leaders’ statement.

Raimondo said the department will push the US government to soon recognise Vietnam’s market economy status, and would coordinate with the country to materialise the contents agreed in the statement.

The US appreciates Vietnam’s efforts to modernise and enhance transparency of its monetary policy and exchange rate management framework, promote macroeconomic stability, and ensure the safety of the banking system, it said.

Vietnam has also proposed that the US open its doors wider for Vietnam’s goods such as electronics, garments and textiles, footwear, farm produce and fresh fruit, and the US will not impose trade remedies on Vietnamese goods.

According to the Ministry of Planning and Investment, as of August 20, total US registered investment capital in Vietnam reached nearly $11.8 billion in 1,300 projects, making the US the 11th largest foreign investor in Vietnam. From January to August 20 this year, total newly registered and newly added capital, stake acquisitions, and capital contributions from US investors in Vietnam hit $490 million – including 72 new projects registered with $75 million.

Two-way trade between Vietnam and the US has increased from $450 million in 1995 when the two countries established their diplomatic relations, to $123.7 billion last year, and $71.6 billion in the first eight months of this year.

Raimondo noted that US trade with Vietnam and its investment into the country would continue increasing thanks to the US’ Indo-Pacific Economic Framework for Prosperity, currently under negotiations involving Vietnam. “US firms are greatly interested in the Vietnamese market, where there are many business and investment opportunities,” she said. “We believe that after the negotiations are concluded, more US funds will invest strongly into Vietnam.”

The framework focuses on trade, supply chains, clean energy, decarbonisation, infrastructure, tax, and anti-corruption.

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