With the official elevation of the bilateral relationship between the United States and Vietnam from Comprehensive Partners to Comprehensive Strategic Partners for Peace, Cooperation, and Sustainable Development, Vietnam’s economy is expected to experience robust development in the near future. Vietnamese businesses, as the backbone of the entire Vietnamese economy, will also undergo comprehensive development, especially in promoting exports to the U.S. market with Vietnam’s key export products.
This historic event in the advancement of Vietnam-US relations is anticipated to bring significant benefits to both countries, opening up a wide and potentially lucrative trade corridor. Various sectors are expected to experience substantial breakthroughs, building upon the existing trade relationship between Vietnam and the United States, as evidenced by the high-level meeting between President Joe Biden and Vietnamese representatives, including General Secretary Nguyen Phu Trong and Prime Minister Pham Minh Chinh, at the Vietnam-US High-Level Investment and Innovation Conference.
Key areas of cooperation include the supply of raw materials, components, and equipment for the energy sector, aviation, digital economy, and applications of artificial intelligence.
According to President Joe Biden, the United States will collaborate with and support Vietnam in technology, semiconductor manufacturing, innovation, green transformation, human resource training, and, notably, deeper integration into regional and global value chains.
Impact on Import-Export and Trade Remedy
In reality, the U.S. economy has recently faced difficulties, marked by high inflation rates leading to a corresponding decrease in domestic consumer purchasing power. However, these challenges are largely short-term in nature. The deeper the dip, the stronger the subsequent rebound is expected to be.
This situation presents an opportune moment for Vietnam to ramp up its exports to one of the world’s largest markets. Considering the confirmed bilateral relations and Vietnam’s economic recovery over the past months, as reflected in gradually increasing PMI figures of Vietnam, it is evident that the upcoming months will be a golden period for Vietnam’s exports to the United States.
In addition to high-tech products, Vietnam’s key export sectors such as textiles, wood furniture, leather and footwear, electronics, among others, are also expected to recover and thrive. With advantages in diversified and cost-competitive products, an affordable labor force, and improved product quality, Vietnamese businesses continue to gain trust from U.S. counterparts.
Particularly, in recent years, as trade tensions between the United States and China escalated, U.S. businesses have increasingly sought viable alternative production sources such as India and Vietnam.
In the foreseeable future, the United States is expected to promote the implementation of FriendShoring policies beneficial to comprehensive strategic partners like Vietnam.
Specifically, FriendShoring entails a shift away from seeking cheap production sources to embracing high-quality businesses in countries identified as friendly partners to the United States. Consequently, Vietnamese enterprises will not have to compete solely on price competitiveness but can instead focus on enhancing product quality and production processes based on the established comprehensive strategic partnership between the two countries.
However, Vietnam should remain cautious about excessive concentration on exporting a single product to the U.S. market, as there is a risk of anti-dumping investigations and the application of trade remedy measures. Comprehensive strategic partnerships or relationship settings do not grant Vietnam immunity from trade remedy investigations initiated by countries impacted by Vietnam’s exports.