Vietnam - United States: Looking back on a year marking a new era of cooperation

Vietnam-US relations have undergone a remarkable journey, growing from the initial foundations to achieve substantial progress.

Delegates attending the 2024 Vietnam - US Cooperation Forum.

Recently, the University of Economics - Vietnam National University, Hanoi (UEB), in collaboration with the Vietnam Union of Friendship Organizations and Troy University (USA), organized the Vietnam - US Cooperation Forum 2024 with the theme "Innovation towards sustainable development".

The 2024 Vietnam - US Cooperation Forum is one of the activities to celebrate the first anniversary of the upgrade of Vietnam - US relations to Comprehensive Strategic Partnership and towards the 30th anniversary of the normalization of diplomatic relations between Vietnam and the US (1995-2025). The event is also one of the important activities to celebrate the 50th anniversary of the tradition of the University of Economics - Vietnam National University, Hanoi (1974-2024).

Vietnam - US Relations: Substantive Progress

Vice President of the Vietnam Union of Friendship Organizations Dong Huy Cuong spoke at the forum.

According to Vice President of the Vietnam Union of Friendship Organizations Dong Huy Cuong, since the establishment of diplomatic relations in 1995 and especially the two countries upgrading their relationship to Comprehensive Strategic Partnership for Peace, Cooperation and Sustainable Development in 2023, Vietnam and the United States have witnessed significant progress in enhancing mutual understanding, consolidating trust and promoting cooperation in all areas, which was acknowledged by President Joe Biden and General Secretary To Lam during their talks last September.

Vietnam's motto in developing relations with the United States is "putting the past behind, overcoming differences, promoting similarities, and looking toward the future." Opening his speech at the 79th United Nations General Assembly High-Level Week, President Joe Biden affirmed that upgrading the Vietnam-US partnership to the highest level demonstrates the resilience of the human spirit and the ability to reconcile. It also proves that behind the horrors of war, there is still a way forward. Things can get better.

At the event to celebrate the first anniversary of Vietnam-US relations upgrading to Comprehensive Strategic Partnership in New York on September 22, General Secretary To Lam stated that the Vietnam-US relationship is the result of the tireless efforts of many generations of leaders, Governments, National Assemblies and people of the two countries in mending and building trust after the war. The Comprehensive Strategic Partnership, based on the principles of respect for the United Nations Charter, international law and each other's independence, sovereignty and territorial integrity, will open up new opportunities for friendship and cooperation between the two countries.

According to Mr. Cuong, the cooperative relationship between the two countries is increasingly developing in many fields. At the multilateral level, Vietnam has become a comprehensive strategic partner of the United States. “Currently, the two countries are not only partners but also friends. The relationship between the two countries as it is today is the result of the tireless efforts of generations of leaders, governments and people of both countries. At the same time, this is also an opportunity to open a new chapter in strengthening cooperation and friendship between the two countries in the coming time,” the Vice President of the Vietnam Union of Friendship Organizations emphasized.

Vice President of Hanoi National University Dao Thanh Truong spoke at the forum.

Associate Professor, Dr. Dao Thanh Truong, Vice President of Hanoi National University, assessed that the Vietnam - US relationship has gone through a remarkable journey, developing from the initial foundations to achieve substantial progress.

Starting from the establishment of diplomatic relations in 1995, the two countries have expanded cooperation through the Bilateral Trade Agreement (BTA) in 2000, followed by the Trade and Investment Framework Agreement in 2007.

In particular, in 2013, the signing of the Comprehensive Partnership marked a new era of cooperation. By 2023, the Vietnam-US relationship will reach new heights with the establishment of the Comprehensive Strategic Partnership, symbolizing a shared commitment to a prosperous and sustainable future.

Over nearly 30 years, trade, cooperation and investment between Vietnam and the United States have grown rapidly and sustainably.

From 1995 to 2023, bilateral trade increased from $450 million to more than $100 billion, despite challenges such as the pandemic and global economic turmoil.

The United States has become the second largest trading partner, continuously maintaining its position as Vietnam's largest export market, while Vietnam has become the United States' eighth largest trading partner and the most important trading partner in the ASEAN region.

Scholars and experts attended the forum.

Specifically, bilateral trade turnover between the two countries recorded significant growth, averaging 16% per year. As of the first 8 months of 2024, bilateral trade turnover reached nearly 88 billion USD, up 22% over the same period in 2023. Of which, Vietnam's exports to the United States reached 77.9 billion USD (up 24.5%), while imports from the United States were 9.8 billion USD (up 5.3%).

In particular, the United States became for the first time the largest market for Vietnam's agricultural, forestry and fishery products, with a turnover of 8.58 billion USD, accounting for 21.4% of the total export turnover of this product group.

In terms of investment, the United States is currently the 11th largest foreign investor in Vietnam, with more than 1,340 projects with a total investment capital of more than 11.8 billion USD. Notably, in the first 8 months of 2024, the United States had 68 newly licensed FDI projects in Vietnam with a total value of 85.61 million USD, an increase of 27.5% over the same period in 2023.

Leading US corporations such as Boeing, SpaceX, Coca-Cola, and Pacifico Energy are increasingly increasing their presence and expanding their investments in Vietnam, affirming their belief in the potential of this market.

At the same time, large Vietnamese enterprises such as FPT and VinFast are also actively expanding their investments in the United States, strengthening Vietnam's position in the international arena. This connection brings great economic benefits, opens up opportunities for sustainable cooperation and strengthens the strategic relationship between the two economies.

Delegates listen to presentations at the forum.

Associate Professor, Dr. Dao Thanh Truong affirmed: “These achievements would not have been possible without the contributions of the business community, organizations and individuals at home and abroad who have continuously promoted the Vietnam - US partnership. Their active and persistent participation has turned commitments into tangible results, strengthening the relationship between the two countries.”

Towards sustainable development

The 2024 Vietnam-US Cooperation Forum is not only an academic event but also provides a comprehensive perspective on the bilateral partnership between the two countries. The forum creates opportunities for leaders, experts and scholars of the two countries to discuss and exchange ideas on development directions in areas such as trade, investment, education and innovation towards sustainable development.

Prof. Andreas Hauskrecht from Indiana University, USA.

Presenting a speech at the forum, Professor Andreas Hauskrecht of Indiana University expressed his impression of Vietnam's "miraculous" growth over the past 30 years since his first visit to Vietnam in 1991. He said that the main driving force helping Vietnam achieve these results is the market-oriented economic reform.

However, the professor said that in the current context, Vietnam's economy is facing many limitations. Firstly, Vietnam has one of the largest market openness levels in the world, leading to instability and being particularly vulnerable in some situations. Secondly, there is the issue of a large trade surplus with the United States. Thirdly, there is the sustainability of Vietnam's demographic situation.

Professor Andreas Hauskrecht believes that at present, the low productivity of the state economic sector is holding back Vietnam's growth rate. Because, although the state economic sector accounts for a large part of the economy, the economic sector with foreign direct investment (FDI) is the factor that promotes growth and this will not last forever.

“What is really needed is to promote the development of the private economic sector. The key here is that the young generation of Vietnam can stimulate and develop the private economic sector,” Mr. Hauskrecht commented.

The forum is held live and online at many locations.

Sharing the same view with Professor Hauskrecht, Dr. Vu Hoang Linh commented that a major challenge of Vietnam's current economy is its over-reliance on cheap labor with significantly lower productivity than neighboring countries such as Thailand and Malaysia.

“These factors put Vietnam at risk of the middle-income trap,” Linh said. “At the same time, like many other developing economies in the world, Vietnam faces long-term environmental risks. Vietnam also faces major challenges as rising geopolitical tensions impact trade activities. Along with that is the challenge of balancing the goal of rapid growth and ensuring environmental sustainability.”

Faced with these challenges, Mr. Linh said that Vietnam needs to improve the quality of education and develop skills for workers. Along with that, it is urgent to develop an innovation ecosystem with increased spending on research and development, supporting startups and small and medium-sized enterprises. These are key points to improve the quality of labor.

Delegates listen to the opinion of Consul General of Vietnam in San Francisco (USA) Hoang Anh Tuan.

Vietnamese Consul General in San Francisco (USA) Hoang Anh Tuan said that there are still many advantages for the cooperative relationship between the two countries to continue to develop further. According to Mr. Hoang Anh Tuan, in the future, there are still many opportunities to expand trade cooperation between the two countries, especially in the fields of manufacturing, electronics, automobile manufacturing, clean energy, green energy, financial services, investment, infrastructure, digital economy and cyber security... "These are areas that can contribute to the growth of the Vietnamese economy, as well as support Vietnam to participate in the US market", Ambassador Hoang Anh Tuan suggested.

Program Director, United States Agency for International Development (USAID) Isabelle Mulin shared that USAID has been working with the Government of Vietnam, the private sector, universities and research institutions, domestic and international organizations, and other stakeholders since 1989 to advance common priorities. USAID is committed to continuing to support Vietnam in enhancing economic competitiveness, modernizing higher education, preventing infectious diseases, responding to climate change, and conserving biodiversity. Ms. Isabelle Mulin said that to move towards sustainable development, it is necessary to have a long-term strategic vision as well as focus on cooperation between parties.

Program Director, United States Agency for International Development (USAID) Isabelle Mulin.

In addition to presentations from Vietnamese and US speakers, delegates also participated in two roundtable discussions. The discussion session on “Vietnam-US Trade and Investment Cooperation” focused on bilateral trade growth trends, opportunities and challenges in the supply chain, FDI investment, renewable energy and sustainable development. The discussion also expanded on measures to promote business cooperation and technology transfer, as well as ESG (environment-social-governance) strategies.

The content of the discussion session “Innovation and Education Cooperation towards Sustainable Development” aims to promote innovation in education and develop high-quality human resources, build a startup ecosystem, develop STEM education, digital skills and the role of universities in applied research. Digital technology and AI applications in education are also discussed to enhance sustainable education and environmental awareness.

Scholars and experts discuss at the discussion session.

The forum is expected to not only have international influence and spread, directly connecting the community of scholars, researchers, policy makers, and businesses of Vietnam and the United States, but also aim to connect the flow of trade, services, and investment between the two countries, focusing on recent trends such as the chip and semiconductor industry, high-quality human resource training, science and technology, promoting energy efficiency and environmental protection.

Source: https://baoquocte.vn/viet-nam-hoa-ky-nhin-lai-mot-nam-danh-dau-ky-nguyen-hop-tac-moi-293999.html