Although Vietnam has a surplus in trade with the United States, the former is an important market of the latter and the two-way trade turnover keeps going up year after year. Therefore, Vietnam and the US are the important markets of each other.
Vietnam apparel - textile: Biggest cash earner
Currently, the bilateral trade turnover between Vietnam and the US approximates US$30 billion, an increase of over 130 times over 1994. Vietnamese Ambassador to the US, Nguyen Quoc Cuong said that the Vietnam - US bilateral relations are deepening. In July 2013, the two sides established the comprehensive partnership framework. According to statistics from customs authorities, the two-way trade revenue reached US$29.1 billion in 2013, up 18.8 percent against 2012 and up 4.3 times against 2005 with US$6.77 billion.
Remarkably, Vietnam is running a trade surplus with the US. In 2013, Vietnam’s earnings from exports to the United States were over 4.5 times more than the value it spent on imports from the world’s largest economy, resulting in a trade surplus of US$18.6 billion for Vietnam. According to customs authorities, the values in the first months of 2014 were higher than those in the corresponding periods in 2013. In the first two months of 2014, the two-way trade revenue was estimated at US$4.9 billion, up 25.8 percent year on year.
Apparels are Vietnam’s biggest export to the US, which reached US$8.6 billion in 2013, accounting for 36 percent of its total exports to this market and nearly 48 percent of its apparel exports. Especially, in 2013, Vietnam’s telephone exports to the US surged 5 times over 2012. Additionally, Vietnam’s key exports like wooden furniture, seafood and footwear also have big proportions in this market.
According to experts, the bilateral trade turnover augments 20 percent annually and their import and export structures are not antagonistic. Hence, Vietnam’s major exports to the United States like garments, footwear and furniture are forecast to be on the rise in the near future. The two-way trade turnover is estimated to climb to US$50 billion in 2020. Notably, many US importers redirected their orders to Southeast Asia, including Vietnam, from China.
US exports to Vietnam on the rise
According to experts, Vietnam is now one of 13 key markets of the US and its 29th biggest trade partner. Boosting exports is as one of the important measures of the US to spur economic growth and Vietnam, as an ASEAN member, is an important market of the US. Therefore, US’s exports to Vietnam are on the rise year after year. Currently, some 1,800 containers of US agricultural products such as fruits, meat, poultry meat and are shipped to Vietnam every year. Vietnam’s key exports to Vietnam in 2013 include machinery, spare parts, computers, electronic products, cotton, plastic materials, animal feed and soybean.
In 2013 alone, Vietnamese companies signed contracts worth US$2.6 billion to buy jet engines and wind turbines, thus helping the US generate thousands of new jobs. Vietnam is the most popular destination for US companies to expand business in Southeast Asia. In 2013, its exports to Vietnam were worth US$5.23 billion, up 8.4 percent against 2012.
Vietnam is also a favourite destination of US investors and they are also expanding partnerships with Vietnamese firms. With a total direct investment of more than US$11 billion, the US ranked 7th amongst countries and territories investing in Vietnam. This is also a favourable condition for Vietnamese enterprises to grasp opportunities. Mr Herb Cochran, Executive Director of the American Chamber of Commerce (AmCham) in Ho Chi Minh City, said, big US companies like Walmart have detailed processes to manage their vendors and Vietnamese companies should necessarily study their requirements to become their direct suppliers.
The two-way trade is forecast to balloon after Trans-Pacific Partnership (TPP) Agreement takes effect. Mr Mark Gillin, Chairman of AmCham Vietnam, said TPP will trigger more waves of investment and trade among its members, including the United States and Vietnam. The agreement will boost US - Vietnam economic relations and they will be able to approach the market of each other on a wider scale.
Le Phuong
Vietnamese
