HCM City (VNA) – The upgradeof the Vietnam - US relations to the comprehensive strategic partnership isopening considerable opportunities for both sides to activate new andbreakthrough cooperation fields so that Vietnam can engage more deeply inglobal supply chains, said Deputy Minister of Industry and Trade Do Thang Hai. 

Addressing the annual bilateral tradeforum held in Ho Chi Minh City on November 21, he highlighted Vietnam’sconsistent policy of viewing the US as one of the most important economic andtrading partners.

That Party General Secretary Nguyen PhuTrong and US President Joe Biden officially announced the relationship elevationto the comprehensive strategic partnership on September 11, 2023 has provided asolid foundation for bilateral cooperation to become more substantive in allpillars, with economic, trade, and investment ties remaining the centralimpetus for the countries’ relations, he noted.

Hai went on to say that Vietnam is positioning itself well to become a major manufacturing hub in the world. Its businesseshave been producing a diversity of products with competitive prices andimproving quality.

Given the post-pandemic situation andrecent political and economic uncertainties, many enterprises, retailers, andwholesalers are stepping up diversification strategies to ensure supply sustainability,and they have chosen Vietnam as one of the strategic destinations of theirglobal supply chains. This is a big opportunity, but great efforts from producersand exporters are required to grasp it, he said.

Suggesting new and breakthrough cooperation fields, the official saidfocus should be put on boosting Vietnamese firms’ participation in the supplyof materials, components, and equipment for the energy, aviation, digitaleconomy, semiconductor, and artificial intelligence sectors.

Barbara Weisel, an expert ininternational trade law and former assistant to the US Trade Representative,said that the establishment of the comprehensive strategic partnership showedthe determination of the two countries to develop a dynamic relationship with manycooperation promises and bigger opportunities in the future.

In recent years, she said, the Vietnamese market hasbeen growing strongly and stably. Its young, educated, and entrepreneurial workforceand the network of free trade agreements have turned the country into a leadingbeneficiary from many countries and companies’ interest in supply chaindiversification to guarantee better resilience and economic security.

Thanks to the shift of supply chains andother factors, Vietnam has recorded the biggest market share expansion in theUS compared to others. The North American country has become the largest importmarket of Vietnam, accounting for nearly one-third of the latter’s exports. Asof September this year, Vietnam’s exports to the US rose nearly 15% while theUS’s shipments to the former have yet to post such strong growth, she pointedout.

Foreign direct investment in Vietnam is on the rise, Weisel continued,adding that US businesses from many sectors are heading towards the dynamic SoutheastAsian market while an increasing number of Vietnamese firms, including electricvehicle producers, have also seen investment chances in the US.

The two countries should actively worktogether to build concrete and detailed action plans to enhance the resilienceand competitiveness of the fields that both prioritise. They need to act quicklyto generating economic benefits as globalbusinesses are paying attention to new investments in the region and seeking todiversify supply chains, the expert recommended.

Do Thien Anh Tuan, senior expert at Fulbright University Vietnam, said Vietnamshould continue creating optimal conditions for US enterprises to invest and dobusiness, especially in the fields matching the US’s strength and Vietnam’sdemand.

Besides, Vietnamese companies should improveproduct quality, build brands, and actively join global supply chains throughthe cooperation with US partners, he added./.