Vietnam, US businesses sign deals worth US$4.2 billion

The Hanoi Times — Vietnamese and US businesses signed cooperation agreements and contracts for the procurement of machinery, equipment, raw materials, services, and goods with a total value of nearly $4.2 billion.

The signing took place during the visit of Prime Minister's Special Envoy and Minister of Industry and Trade Nguyen Hong Dien to Washington, D.C. on March 13, to strengthen bilateral economic and trade cooperation.

According to the Ministry of Industry and Trade (MoIT), these agreements will further promote economic, trade, and investment cooperation between the two countries.

In addition to the contracts inked, previous agreements worth $50.15 billion have been finalized, focusing on aircraft procurement, aviation services, oil and gas exploration, and refined petroleum product imports. Negotiations are underway for additional agreements estimated to be worth around $36 billion.

As a result, the total value of economic and trade agreements between Vietnamese and US businesses expected to be implemented from 2025 onwards is projected to reach approximately $90.3 billion. MoIT emphasized that these collaborations will create hundreds of thousands of jobs in both countries.

Dien said the critical role of trade and investment cooperation as a driving force in strengthening bilateral relations. He noted that the signing of these agreements and memorandums of understanding demonstrates Vietnam's commitment to expanding its imports from the US and fostering a more balanced and mutually beneficial trade relationship.

There remains significant potential for further cooperation, particularly in areas such as science and technology, innovation, research and development, semiconductor and chip industries, artificial intelligence (AI), the Internet of Things (IoT), renewable energy, finance, biotechnology, and healthcare.

The minister expressed his hope that the United States will continue to support business partnerships that will allow for effective investment and cooperation, especially in high-tech and innovation-driven projects.

Vietnam and the US established diplomatic relations in 1995 and upgraded their relationship to a Comprehensive Strategic Partnership in September 2023. Over the past two decades, the US has been Vietnam's second largest export market and one of its most important trading partners. Last year, bilateral trade reached nearly $150 billion, with Vietnam's exports to the US totaling $137 billion, marking a 19% increase from 2023.

In a meeting with USTR Jamieson L. Greer earlier during the visit, Minister Dien reaffirmed Vietnam's recognition of the US as a top strategic partner. He assured that Vietnam has no intention of implementing trade policies that would harm US workers or national security. The Vietnamese government is proactively taking measures to expand trade and investment ties with the US in a comprehensive and sustainable manner.

At a government press briefing on March 5, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said that through the US Embassy in Vietnam and the Vietnamese Embassy in the US, Vietnam has actively conveyed its commitment to maintaining and strengthening a balanced and mutually beneficial economic and trade relationship with the US.

He also reiterated that Vietnam pursues a free trade policy and that tariff differentials on US goods are minimal. These differences are expected to narrow further as Vietnam continues to lower its Most Favored Nation (MFN) tariffs on various products.

As a result, US exports with strong competitive advantages, such as automobiles, agricultural products, liquefied natural gas (LNG), and ethanol, will benefit from these policies, boosting US imports and contributing to a more balanced trade relationship between the two countries.