Timber agreement marks a new chance for improved market access

Adam Sitkoff - Executive director American Chamber of Commerce in Hanoi

According to the USTR’s notice, the new agreement with Vietnam secures commitments that will help keep illegally harvested or traded timber out of the supply chain and protect the environment and natural resources.

The USTR will monitor the implementation of the agreement and does not plan to impose any trade remedies. The American Chamber of Commerce in Vietnam (AmCham) believes that the United States and Vietnam have developed a healthy trade and investment relationship and we are pleased that the two governments were able to reach this agreement and ease trade tensions.

These tensions were primarily driven by Vietnam’s rising trade surplus with the US. To effectively address the trade imbalance, we would prefer the US government continue to work closely with the US business community in Vietnam on the principal challenges and opportunities that matter most.

For example, there are many areas that US companies view as unfair or discriminatory policies and practices in Vietnam. Examples include digital trade and broadcast, intellectual property rights, customs and tax procedures, and more.

Over the past year of this investigation, AmCham repeatedly urged the US government to resolve issues with Vietnam without resorting to duties, tariffs, or other trade barriers. In our view, we see a great opportunity to create a win-win situation by improving market access conditions for US exports of goods and services to Vietnam as the bilateral trade relationship develops on both sides.

Right now is an important time for Vietnam. We see many businesses here that continue to face significant operational challenges, especially with the frequent changes in regulations that are announced and implemented on very short notice. We need policies that are practical, effective, and affordable. Most importantly, we need to see better coordination at all levels of government on implementing pandemic-related policies.

AmCham is working with the government to ensure a fair, transparent, predictable, and streamlined regulatory environment that values innovation. In these uncertain times, the regulatory approval processes for foreign investment should be less burdensome to encourage and expedite more US investment to support post-pandemic economic recovery here.

As major investors here, American companies have an interest in Vietnam’s continued success. We can all do our part to help during these challenging times because social distancing does not mean social disengagement.

AmCham members stand together with the Vietnamese people and US businesses continue to donate goods and other resources to assist outbreak areas. Working together, we can overcome the challenges caused by the virus.