Thriving bilateral US-Vietnam ties better than ever before

Lynne Gadkowski - Economic counselor US Embassy to Vietnam

Having just taken up my post as economic counselor at the US Embassy in Hanoi, I would like to take this opportunity to reflect on the remarkable trajectory of the US-Vietnam economic relationship and, despite the tremendous challenges of the past year, the prospects for an even brighter future.

In the 26 years since the United States and Vietnam established diplomatic relations, our bilateral trade has skyrocketed from almost nothing in 1995 to nearly $90 billion in 2020.

Vietnam is now the United States’ 10th largest trading partner worldwide, ahead of India and France. The United States remains Vietnam’s largest export destination, and Vietnam is now a fast-growing market for US investors: since 2015, American exports to Vietnam have grown nearly 40 per cent.

We see tremendous market opportunities in Vietnam for US goods and services in the fields of agriculture, aviation, education, energy, healthcare, and smart cities technologies, to name a few. And our two countries are increasingly linked through global supply chains: American-made computer chips, hardwood, cotton, and animal feed fuel Vietnam’s exports of semiconductors, furniture, apparel, and seafood to the United States and diverse markets around the globe.

American firms have also played a leading role in Vietnam’s rapid economic development by investing billions of US dollars here, integrating Vietnam into global supply chains, creating high quality jobs, and powering Vietnam’s fast-growing economy. In the energy sector, American investors are at the forefront of transitioning Vietnam away from coal toward a clean energy future.

And investment does not just flow one way anymore: enterprising Vietnamese companies with aspirations beyond their own borders are increasingly setting their sights on the United States. Vietnamese firms in the food and beverage, financial technology, and apparel sectors all attended the June 2021 Virtual SelectUSA Summit, the highest profile event dedicated to promoting foreign direct investment in the United States. The US Mission has spoken with dozens more Vietnamese firms interested in gaining a foothold in the vast American market.

Investment between the United States and Vietnam does not just flow one way anymore, photo Le Toan

While the United States and Vietnam have had tremendous success in growing our economic ties, we do occasionally have disagreements. This is common among all our trading partners, and the more we trade, the more we have trade issues to discuss. As always, we work together to find pragmatic solutions.

We are working with our Vietnamese counterparts to remove market barriers facing US products, so Vietnamese consumers can access world class American goods and services – including in the digital realm. We are working to improve the business climate, so American firms can compete openly and fairly.

And we are working towards combatting unfair trade practices that harm American workers. In the same spirit of cooperation that led to the remarkable transformation of our bilateral ties, I am confident that we can resolve these issues constructively.

In the months and years ahead, the United States and Vietnam have an opportunity to deepen and expand our economic partnership to tackle some of the world’s most pressing challenges, from beating back the pandemic and restoring the global economy to reducing emissions and confronting the climate crisis.

As a manufacturing powerhouse, Vietnam plays in integral role in ensuring diverse and secure global supply chains to bolster a strong global economic recovery. On climate, Vietnam is setting the pace for renewable energy deployment in Southeast Asia, but still faces challenges in reducing emissions overall.

The United States and our world-class American companies are committed partners in these efforts, as we take our trade and investment relationship to even greater heights.