Economics and trade is the field that has witnessed the most rapid and impressive progress in Vietnam-US ties. The coming into force of the Bilateral Trade Agreement in 2001 opened up a host of opportunities for businesses in the two countries.
The two-way trade value jumped from nearly US$1.4 billion in 2001 to US$34 billion in 2014, significantly contributing to poverty reduction in Vietnam. Most significantly, the US has been instrumental in assisting Vietnam improve its national competitiveness.
Trade facilitation is a powerful tool for integrating small and medium enterprises (SMEs) into domestic and global value chains, which makes growth more inclusive, says USAID’s Acting Assistant Administrator for Asia Anne Aarnes.
A number of USAID programmes, including the Provincial Competitiveness Index (PCI), highlight the importance of SMEs, including women-led enterprises, to Vietnam’s growth and the value of involving business in policymaking.
The alliance will support implementing the Trade Facilitation Agreement (TFA) in Vietnam, as well as other free trade agreements such as the Trans-Pacific Partnership (TPP). It also aims to improve competitiveness of domestic and foreign firms in Vietnam through a more transparent business environment.
Through its member networks, the VFTA will share information on trade facilitation including taking part in the annual Traders Satisfaction Survey conducted by VCCI and the GDVC and sharing data on customs performance collected from the private sector.
USAID has worked closely with the Vietnamese government and business associations to develop and implement effective trade facilitation assistance to enable Vietnam to meet the commitments in the TFA and prepare for implementing the TPP.
Experts speak highly of the establishment of the VTFA, saying that the alliance looks forward to targets for supporting Vietnam fulfilling international commitments on trade and investment to accelerate the global integration process with a focus on TFA and TPP.
