The Vietnamese government welcome US investments in fields with high added value, including energy, industry and infrastructure, that can help Vietnam further go up in the global value chain, according to Vice Minister of Industry and Trade Do Thang Hai.
Overview of the conference. Source: MoIT.
An unstable global trade environment as a result of the Covid-19 pandemic is putting pressure on multinationals, including US corporations, to look for the formation of new supply chains, state Mr. Hai at the Vietnam – US Trade Forum 2020 held on November 18.
During this context, a growing number of enterprises are investing in backup supply chains in different locations to ensure sustainability and continuity in operation, he noted, adding many US investors consider Vietnam as a key and safe choice for the global value chains.
Vice Minister of Industry and Trade Do Thang Hai speaks at the conference. Source: MoIT.
According to Mr. Hai, this is the right time for Vietnam to continue pushing for greater improvements in the business environment to attract investment from the US and take a higher role in the supply chains.
US Consul General in Ho Chi Minh City Marie Damour said given Vietnam’s rapid economic growth in the past few years, opportunities for US companies spread in all fields, from healthcare, aviation, to agriculture or education.
Four sectors with the highest potential are energy, infrastructure, digital economy and hi-tech manufacturing, she added.
Mr. Hai pointed to the complementary nature between the two economies as key factor to maintain mutual benefits in bilateral cooperation, therefore placing the US among Vietnam’s top trading partners.
The vice minister also urged Vietnamese enterprises to import more machinery, equipment and technologies from the US to help facilitate trade between Vietnam and the US.
With an investment of US$9.4 billion in 1,063 projects as of September 2020, the US ranks 11th out of 138 countries and territories in terms of FDI commitments to Vietnam. Most of the US's biggest corporations are already present in Vietnam, including Exxon Mobil, Murphy Oil, Chevron, Boeing, Ford, Intel, Wal-Mart, Nike, Coca-Cola and P&G, among others.
During the course of 25 years since the establishment of diplomatic relations, bilateral trade turnover increased by 168-fold from US$450 million in 1995 to US$75.7 billion in 2019.
The US mainly imports textile, footwear, wooden products, seafood, and electronic products from Vietnam, and is Vietnam’s top supplier of equipment, core technologies, and agricultural products.