(VOVworld) – In the 20 years since the normalization of diplomatic relations, Vietnam-US relations have greatly expanded, particularly in economics, trade, and investment. Two-way trade has increased to the point where the US is Vietnam’s biggest export market.

During Party leader Nguyen Phu Trong’s visit to the US, a number of cooperative agreements in banking, aviation, oil and gas, and power were signed between Vietnam and the US. (Photo: baomoi.com)

Two-way trade between Vietnam and the US increased from 3 billion USD in 2002 to 35 billion USD in 2014.Vietnam’s exports to the US increased steadily over the last 15 years, accounting for 22% of ASEAN’s total exports to the US in 2014. Vietnam has become ASEAN’s biggest exporter to the US. According to economists, Vietnam’s exports to the US will likely reach 57 billion USD by 2020, 34% of ASEAN’s exports to this market.

Cu Chi Loi, Director of the American Research Institute, said: “The US economy has overcome its crisis and is rebounding. Opportunities for Vietnamese exports to the US will be greater than previous years. As the US economy improves, domestic consumption will increase, creating opportunities for Vietnamese goods to enter the US market.”

The US is also one of Vietnam’s biggest investors. By February, 2015, the US had 729 investment projects in Vietnam worth 11 billion USD, making it Vietnam’s 7^th biggest investor. Many large US companies, including Intel, Microsoft, IBM, Ford, Cocacola, PepsiCo, Cargill, and P&G have come to Vietnam. In particular, Intel and Microsoft have undertaken a number of major projects to make Vietnam one of their top production centers.

Sherry Boger, Chairperson of the American Business Association in Vietnam, said Vietnam is an attractive destination for foreign investors in Southeast Asia because it is located on an important trade route and has low labor costs and excellent growth prospects.

She said that the potential for further cooperation in trade and investment between Vietnam and the US is great, which will increase two-way trade and aid Vietnam’s efforts to improve its business environment.

She added: “the TPP will help play a foundation for regional renovation for economic and social development. Cooperation and the TPP can be a foundation and an engine for the US-Vietnam comprehensive partnership. On enhancing enterprises competitiveness, Vietnam has been extremely successful in attracting FTA. We need more participation by Vietnamese companies and global supply chains. Only 36% of all Vietnamese firms are integrated into export oil and production network, compared with nearly 60% in Malaysia and Thailand.”

Vietnam  and  the  US  have  great  potential  for  broadening their economic,  trade,  and investment  relations. The business communities of both countries expect that the signing of the TPP will open a larger market and more opportunities for cooperation between Vietnam and the US. 

Vu Tien Loc, President of the Vietnam Chamber of Commerce and Industry, said: “There will be a breakthrough in bilateral relations. We expect the US to become Vietnam’s top investor and importer. We are on a path of reforming and industrializing. The US has advanced technologies in several sectors and a great financial capacity. We expect increasing US investment in Vietnam’s finance, banking, insurance, manufacturing, electronics, agriculture, and tourism sectors in the future.”

Economists  predict  Vietnam-US  trade  revenue  in  2015  will  exceed  last year’s  figure  of  35  billion  USD.  Vietnam has simplified its administrative procedures, upgraded its technology, and improves its product quality for exports. Economic achievements over the past 20 years have laid a foundation for a breakthrough in Vietnam-US economic, trade, and investment cooperation.