Vietnam–U.S. Trade Set to Surpass $100 Billion Milestone for the First Time
Vietnam–U.S. Trade Growth
Vietnam–U.S. trade could reach $100 billion for the first time this year, a significant increase from the $451 million recorded in 1995 when the two countries first established diplomatic relations. By the first eight months of this year, trade between the two countries had already reached $73 billion. Last year, the trade figure was $90.8 billion, according to Hoang Quang Phong, deputy chairman of the Vietnam Chamber of Commerce and Industry (VCCI).
Export and Import Trends
In the past five years, Vietnam’s exports to the U.S. have grown on average by 230 per cent annually, while U.S. exports to Vietnam have increased by 175 per cent each year. Vietnam is currently the 10th biggest trade partner of the U.S., while the U.S. is Vietnam’s largest trade partner.
Investment Amid the Pandemic
Despite the disruption of supply chains due to the COVID-19 pandemic, U.S. businesses have continued to invest in Vietnam, particularly in the manufacturing and processing sectors, clean energy, aviation, healthcare, and pharmaceuticals. Vietnam’s exports to the U.S. mainly include furniture, footwear, and garments.
Timber Trade
Ngo Sy Hoai, deputy chairman of the Association of Vietnam Timber and Forest Products, highlighted that Vietnam is the largest exporter of wood products to the U.S. and the second biggest importer of U.S. wood material, following China. Although the wood sector aimed for $10 billion in exports to the U.S., the actual figure is expected to be around $8 billion this year due to COVID-19 impacts. Hoai emphasized the need for Vietnamese companies to adhere to U.S. regulations on legal logging to ensure that their materials are not illegally sourced.
Future Trade Agreements
Former Vietnam Ambassador to the U.S. Pham Quang Vinh noted that while the U.S. is unlikely to rejoin the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), it has initiated economic projects in digital trade, infrastructure, and energy. These initiatives present new partnership opportunities between the two countries. Vietnam and the U.S. could consider establishing another bilateral free trade agreement based on existing commitments.
Reference: vnexpress
