Lifting trade embargo paves the way for developing relations with Vietnam

“I think it was a smart decision by the US. After the trade embargo was lifted, banks and businesses rushed to Vietnam. It seems like they had all been waiting for this moment for a long time,” said Dr. Can Van Luc, Chief Economist of the Bank for Investment and Development of Vietnam (BIDV), member of the National Financial and Monetary Policy Advisory Council and member of the Vietnam Pacific Economic Cooperation Committee (VNCPEC), during a discussion with experts on the occasion of the 30th anniversary of the lifting of the trade embargo (1994-2024).

Experts commented that the lifting of the trade embargo was “right man, right time” , helping to open up huge potential for trade and economic cooperation between the two countries.

US Ambassador to Vietnam Marc Knapper commented that the event paved the way for all the great developments that the two countries have achieved in bilateral trade and economic relations. The numbers are clear evidence: Since the trade embargo was lifted in 1994 and the two countries normalized relations in 1995, by 2022, bilateral trade turnover between the US and Vietnam had reached 139 USD, 300 times higher than in 1995. This means that Vietnam is the 8th largest trading partner of the US in the world and the largest trading partner of the US in ASEAN. Meanwhile, the US is the second largest trading partner and the largest export market of Vietnam.

In the context of Vietnam and the US having just upgraded their relationship to a Comprehensive Strategic Partnership, experts believe that more specific action plans are needed to make cooperation initiatives a reality, bringing benefits to businesses and people of both countries. Dr. Can Van Luc mentioned a number of potential areas including startup investment, renewable energy, education, healthcare services, etc.

“We need real projects and programs, a detailed plan for each different area, and also a common focal point to closely monitor the implementation process and provide information,” said Mr. Luc.

Ms. Ha Thu Thanh, Chairwoman and one of the founders of consulting firm Deloitte Vietnam, who witnessed the discussions leading to the lifting of the trade embargo, commented that Vietnam needs to improve its “soft infrastructure”, factors related to the business environment, and the business ecosystem, to really attract investment. “We have commitments worth billions of dollars to invest in Vietnam, but to really bring this capital in, the question that needs to be asked is about governance, building transparency, trust, and improving the market,” she said.

Mr. Bui Quang Minh, CEO of the multi-industry service ecosystem Beta Group, who participated in Shark Tank Vietnam season 6 as a member of the Appraisal Council, emphasized that in the relationship, not only Vietnam learns many values from the US, but the US also receives many values from Vietnam, including innovation and price optimization, which will benefit both people of the two countries. “I feel grateful to live in a time when our partnership brings so much value to our generation, things that were unimaginable many years ago.”

Ambassador Knapper added that the US Department of Commerce is continuing the process of reviewing Vietnam’s non-market economy status. “And they have 270 days to do that. The process began in October last year and included public comment. We, the US government, are committed to a fair and transparent process that is consistent with international norms.” The US looks forward to continuing to work with Vietnam, deepening and strengthening the trade and investment relationship between the two countries.

Phuong Anh

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