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| Production of complex electronic equipment at the Spartronics Vietnam Factory (part of the Sparton Group, USA). Photo: Le Toan |
Establishing a solid foundation for economic cooperation
Looking back at the 30-year development of relations between the United States and Vietnam, from the normalization of diplomatic relations to the Comprehensive Strategic Partnership, it is impossible not to mention the important contributions of US businesses. Investment and business activities of US businesses in Vietnam not only contribute to tightening the economic relationship between the two countries, but also act as a catalyst for economic development in Vietnam.
Although not among the top countries investing in Vietnam, US investment is a driving factor for foreign investment flows, especially as they decide to diversify their supply chains and shift some of their suppliers’ production activities to Vietnam. Although challenges remain, Vietnam’s commitments to strengthening bilateral cooperation, along with efforts in digital transformation, green development, and administrative reform, are opening up new prospects for US investment in Vietnam.
The decision to normalize diplomatic relations between the United States and Vietnam in 1995 marked an important milestone, opening a new chapter in economic relations between the two countries. In the early years, US businesses mainly sought and carried out commercial activities. This was followed by modest-scale investments, focusing mainly on the production of consumer goods. Coca-Cola, Procter & Gamble... were the pioneering US businesses investing in Vietnam. They played an important role in building trust for other US businesses to enter the Vietnamese market.
Vietnam’s strategic location, young workforce, and market-oriented economic reforms during the Doi Moi period were the main factors attracting the attention of US investors during this period. Although there were still some limitations such as incomplete infrastructure and unstable legal system, the foundation for future economic cooperation had been firmly established.
Expand investment in many fields
The signing of the bilateral trade agreement between Vietnam and the United States in 2001 created an important premise for expanding US investment in many key economic sectors of Vietnam and facilitated Vietnam's accession to the World Trade Organization (WTO) in 2007. These trade agreements have significantly reduced technical barriers, created a more transparent and predictable legal environment, and further strengthened the confidence of US investors in the Vietnamese market.
Along with Vietnam's economic development and foreign investment attraction policies, since the early 2000s, US businesses have begun to enter many economic sectors such as technology, energy, healthcare and finance. Not only bringing large amounts of investment capital to Vietnam, leading US businesses such as Intel, General Electric, Citibank... also bring knowledge, management experience and the most advanced technology in the world. In particular, in the technology sector, there have been large investment projects, such as Intel's $1 billion investment project in Ho Chi Minh City in 2006, opening up the potential for Vietnam to become a stronghold of high-tech manufacturing activities.
In addition to investment activities, US businesses are also actively involved in social activities and community support. They participate in projects to protect the environment, improve public health, enhance women's capacity, and implement skills training activities in line with Vietnam's sustainable development goals.
However, in the process of investing in Vietnam, US businesses also face a number of difficulties and challenges. The complexity and overlap of legal documents, inconsistent policy implementation and infrastructure limitations are the main barriers for foreign investors, including US businesses.
Many prospects in the future
Despite many challenges, US investment in Vietnam has many prospects in the future. Impressive economic growth, political stability, digital transformation and green growth efforts, and especially the commitment of the entire political system to strengthen bilateral relations with the United States, are key factors contributing to this prospect.
To turn challenges into opportunities, it is necessary to strengthen cooperation between the Government and the business community and investors. Dialogues on trade and investment policies, increased transparency and compliance with global standards will contribute to improving the investment environment in Vietnam. In addition, education and cultural exchanges can also help enhance mutual understanding and connection between the two countries.
The past 30 years are a testament to the power of economic cooperation. From humble beginnings to diversification, U.S. investment has contributed significantly to Vietnam’s development while creating value for U.S. businesses.
Vietnam is moving toward high-income status. Close cooperation and facilitating US business investment in Vietnam will undoubtedly remain a key pillar for both countries to continue building a prosperous, sustainable and mutually beneficial future.
President Donald Trump affirmed that the United States will significantly reduce reciprocal tariffs on many Vietnamese export goods and will continue to cooperate with Vietnam in resolving difficulties affecting bilateral trade relations, especially in areas that both sides prioritize.
General Secretary To Lam proposed that the United States soon recognize Vietnam as a market economy and remove export restrictions on some high-tech products.
Besides, General Secretary To Lam and President Donald Trump also discussed a number of major directions and measures to promote the Comprehensive Strategic Partnership in the coming years.
Source: https://baodautu.vn/dau-tu-tu-hoa-ky-dan-dat-dong-von-ngoai-vao-viet-nam-d321300.html
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