Economic ties: Implication of Vietnam-US Comprehensive Strategic Partnership

Minh Nguyen

Sep 23, 2023 / 05:28 PM

The US-Vietnam trade rocketed 309-fold since 1995 to US$139 billion in 2022 and the US has been the largest destination for Vietnamese exports in recent years.

One of the key tenets of the recently established Comprehensive Strategic Partnership between Vietnam and the US is to promote economic cooperation through trade and investment.

Vietnamese Prime Minister Pham Minh Chinh rings the opening bell for Friday trading session at Nasdaq's MarketSite in New York City. Photos: Nhat Bac/VGP

Vietnamese Prime Minister Pham Minh Chinh said during the visit to the Nasdaq Stock Market, the most active stock trading venue in the US by volume and the second on the list of stock exchanges by market capitalization of shares traded, behind the New York Stock Exchange (NYSE).

Vietnam has the necessary conditions and potential to move forward in this area, where the US has advantages, PM Chinh said at Nasdaq’s MarketSite in Times Square, New York City chaired by Nasdaq’s Vice Chairman Robert McCooey, who met and invited the Prime Minister in the World Economic Forum’s Summer Davos in June 2023.

McCooey welcomed Vietnamese ministers and senior officials responsible for finance, investment, trade, and stock exchange.

He highlighted the Prime Minister’s visit, saying “The opening bell is to celebrate the strong partnership between the Government of Vietnam and Nasdaq, including the very recent listing of VinFast, a member of Vietnam’s largest conglomerate Vingroup.”

“We look forward to welcoming more companies from Vietnam to Nasdaq in the future,” he said.

Vietnam’s welcoming policies

On this occasion, PM Chinh said the two sides have also identified science, technology, and innovation as pioneering areas of cooperation in addition to their emphasis on economic cooperation.

The Prime Minister urged US corporations to increase investment in Vietnam in priority sectors like startups, innovation, science and technology, education and training, digital transformation, circular economy, and energy transition given the positive political ties between the two countries.

With the continued growth of Vietnam’s stock market, the Prime Minister expects Nasdaq to strengthen cooperation with the State Securities Commission (SSC) and relevant Vietnamese agencies on the basis of mutual benefit.

The Prime Minister reiterated that Vietnam will implement three strategic breakthroughs, namely perfecting institutions, developing modern and synchronized infrastructure, and training highly qualified human resources to create the most favorable conditions for investors.

Vietnam also steps up administrative reform, safeguards the legal interests of investors, removes obstacles, and assists investors in lowering costs, boosting competitiveness, and operating efficiently.

The Vietnamese Prime Minister answered all the questions raised about policies on investment procedures, land use, encouraging foreign firms in pharmaceuticals, among others. He highlighted the stimulation of tourism to draw visitors, including Americans by culture-imbued tourism models while improving digital infrastructure.

He stressed that the validity of Vietnam e-visa for citizens of all countries was extended to 90 days instead of 30, which is very convenient for visiting Vietnam.

In response to foreign companies’ interest in the electronic vehicle market in Vietnam, the Prime Minister said Vietnam is perfecting preferential policies in this industry with a focus on joint investment.

At the same time, Vietnamese ministers and senior cabinet members also answered the questions raised by investors, including those on tax policies.

For his part, Nasdaq’s Vice Chairman Robert McCooey agreed with the Prime Minister to promote start-ups and pledged funds for them.

At the meeting, Nasdaq and the State Securities Commission signed a letter of intent on cooperation.

The Nasdaq Composite tracks the performance of more than 2,500 stocks listed on the Nasdaq while the Nasdaq 100 captures the performance of the exchange’s largest non-financial companies.

Prime Minister Pham Minh Chinh accompanied by Finance Minister Ho Duc Phoc (2nd left) and Minister of Industry and Trade Nguyen Hong Dien (1st right).