US-Vietnam trade undeterred by uncertainty
The information was revealed at the conference titled “Vietnam-US Trade Interaction after 2016” held in Ho Chi Minh City.
According to Mary Tarnowka, the US Consul General in Vietnam, the US is encouraged by Vietnam’s recent resolution on international economic integration, reaffirming its intentions to continue economic reforms and further open its economy, with or without the Trans-Pacific Partnership Agreement (TPP). This resolution is an important signal to trading partners that Vietnam is moving to establish a level playing field for US companies looking to invest and compete in the country.
She noted that potential sectors for US companies in Vietnam include infrastructure projects like energy, smart cities, healthcare, and aviation. “Also, Vietnam is already the 11th largest export market for US agricultural products. The US can take steps to meet Vietnam’s demand for agricultural technology and equipment, as Vietnam strives to improve food safety and develop its food processing industry,” she added.
Echoing the view, governor of AmCham Vietnam’s Board of Governors Walter Blocker said that Vietnam’s competitiveness has resulted in a great increase in US investment and indirectly contributed to intensifying US capital flows into Vietnam through third-party countries. US businesses will continue to promote Vietnam’s continued integration into regional and global supply chains.
“US companies not only produce quality products, but also find more efficient ways to get those products growing in Vietnam and export to other countries. This has created greater productivity gains and competitiveness for the country on a global level, compared to a few years ago,” he said.
Le Hoai Quoc, chairman of the Saigon Hi-tech Park Management Authority, is upbeat about US investment in Vietnam. Many US tech companies like Intel would continue to increase their business, irrespective of the TPP. Intel Vietnam is increasing the range and volume of its production, reaching $4 billion in exports this year.
The US currently ranks 11th among the countries and territories investing in Ho Chi Minh City. More US multinational corporations are looking for investment opportunities in the municipal city.
Le Thanh Liem, Deputy Chairman of the Ho Chi Minh City’s People Committee, expects the US to soon become the city’s largest foreign investor.
When it comes to the future of the TPP, Blocker said that agreement is not dead but it may become something else. Indeed, it is very similar to the commitment to strengthen bilateral trade relationships. Driven by American interests, the US will take the most efficient ways to bring quality products with best prices to US consumers, like Vietnamese textile and apparel goods.
Bilateral trade between the two countries has nearly tripled in the last eight years, and now tops at $45 billion. US exports to Vietnam were up to an astounding 44 per cent in the first half of 2016, making Vietnam its fastest growing export market. Meanwhile, the US remains Vietnam’s largest export market, growing 24 per cent year-on-year.
