US and Vietnam boost investment and trade cooperation

A statement released on September 10 revealed that the U.S.-Vietnam economic relationship remains strong, forward-looking, and positive. US Department of Agriculture Undersecretary Alexis Taylor is leading the largest agricultural trade delegation ever to Vietnam this week, bringing representatives from 50 US businesses and nine states’ departments of agriculture to mark the first anniversary of the partnership.

In June, Ambassador Marc Knapper led a record-breaking delegation of 65 Vietnamese businesses to the SelectUSA Investment Summit in Washington, D.C., with a record number of female executives in attendance. The first Comprehensive Strategic Partnership Economic Dialogue, which is a new forum to discuss economic and policy cooperation, was also held in June.

The US Mission to Vietnam, through USAID, is supporting Vietnam’s growing digital economy, through an MoU signed with the Ministry of Industry and Trade (MoIT) for a $3.2 million programme focused on digital trade. USAID has also launched a partnership with Agribank and VPBank to expand finance opportunities for small and growing enterprises in the agriculture sector. In August, Vietnam approved the import of California nectarines and peaches to Vietnam.

The US Mission to Vietnam is enhancing technical skills training and workforce development at every level through expanded US-Vietnam institutional and public-private partnerships. This includes expanded English language training for STEM students, new exchange programmes focused on workforce development, new Fulbright scholarship opportunities for STEM students and experts, and the September 11 launch of the new $4 million ITSI-CHIPS Workforce Accelerator Program in Hanoi and Ho Chi Minh City to build capacity in the semiconductor industry.

Through these and other efforts, including USAID’s new $15.5 million Higher Education Development Support project, the US continues to partner with Vietnam in the modernisation and internationalisation of key science and technology courses to provide high-quality education and develop a highly skilled, globally competitive workforce.

In addition, the US welcomed the July 3 approval of the direct power purchase agreement after eight years of partnership between MoIT and USAID on its development. Businesses in Vietnam can now purchase electricity directly from private firms producing renewable energy, helping Vietnam attract greater green investment while enabling corporations to achieve their emissions reduction targets.

The US, through the Mekong Delta Coastal Habitat Conservation project, is also building resilience of coastal mangrove ecosystems and increasing US partnerships with Vietnam in the Mekong Delta. USAID supported Cat Tien National Park to achieve International Union for Conservation of Nature Green List status, an international recognition for protected areas that actively contribute to safeguarding and sustaining the world's biodiversity.

The US Department of Agriculture has also signed an MoU with the Ministry of Agriculture and Rural Development’s Plant Protection Division to make better use of fertiliser to reduce costs, greenhouse gas emissions, and water pollution.

In addition, the US Mission has launched a pilot programme to improve air quality in Vietnam by promoting eco-friendly alternatives to rice stalk burning for farmers in Hai Duong and Hanoi, and a partnership with the private sector to help businesses and entrepreneurs cut down plastic waste and promote recycling. The US is continuing to advance its cooperation under the Just Energy Transition Partnership ahead of COP29 in Baku. These areas of cooperation will be discussed at the upcoming Energy Security Dialogue.

More advances can support Vietnam’s aspirations US President Joe Biden will be the fifth American president in a row to visit, and this is something few other countries can claim. It reinforces the United States’ commitment to a strong, prosperous, resilient, and independent Vietnam.

Accelerating involvemenet of American companies The visit by Vietnamese Prime Minister Pham Minh Chinh to the United States and his scheduled meeting with President Joseph Biden and business leaders this week are solid markers of the growing, robust working relationship that exists between the United States and Vietnam.

Sentiment strong from top US investors in Vietnam In the view of most US investors, the most important factor for a favourable US investment climate and maintenance and growth of manufacturing supply chains is a fair, transparent and predictable regulatory environment that values innovation - not only to attract new investment but also to maintain and grow the investment already here.