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Enterprises seizing opportunities from the comprehensive strategic partnership between Vietnam and the United States (US)

An overview of the Entrepreneur Café event with the theme "The comprehensive strategic partnership between Vietnam and the United States - What opportunities for enterprises?" Photo: T.D

Many favorable factors

Speaking at the program, HUBA Chairman Nguyen Ngoc Hoa stated that international integration opened up many opportunities for businesses to enhance learning, experience, and cooperation. Vietnam has cooperative relations with more than 200 countries, has over 50 countries signing strategic partnerships, and has five countries signing comprehensive strategic partnership agreements with Vietnam. To enhance comprehensive strategic partnership relations with other countries, businesses need to stay updated on the levels of diplomatic relations with countries around the world, thereby seizing opportunities to prepare for the integration process.

According to Hoa, establishing a comprehensive strategic partnership relationship between Vietnam and the US for peace, cooperation, and sustainable development will bring many benefits to both countries. This new relationship will boost investment capital from the US into Vietnam. Vietnam will have access to the latest advancements in science and technology from the US. Vietnamese businesses are facing many new opportunities and challenges. Therefore, thorough preparations are required to develop more strongly in the future.

Sharing at the program, the Director of the Department of Foreign Affairs of HCM City, Tran Phuoc Anh, stated that when upgrading the Vietnam-US relationship to a strategic level, the US business community saw many investment potentials in Vietnam. The US recognizes that Vietnam is an important link in the global supply chain, and this role is expected to increase in the future.

Furthermore, the economic and trade relationship between Vietnam and the US has undergone significant changes in recent years. Many of Vietnam's key products are in high demand in the US, and vice versa. This is reflected in the continuous growth of two-way trade turnover.

Specifically, since 1995, two-way trade turnover between Vietnam and the US has increased more than 275 times, from around US$450 million to US$124 billion. The US has been Vietnam's leading and largest export market for many years, accounting for nearly 30% of the country's total export turnover. In 2022, Vietnam became the US' 8th largest trading partner.

Heading towards attracting investment in renewable energy

These continue to be the central foundation, and driving force for the relationship between the two countries and an opportunity for Vietnamese businesses to cooperate and do business with US enterprises. However, to achieve this, according to Anh, Vietnamese businesses need to overcome various trade barriers and product protection issues. Exporting to the US, businesses should clearly define product strategies, partners, and distribution channels, thoroughly understand export regulations, and trade protection-related issues, and ensure the traceable origins of input materials. Step by step, research and upgrade production facilities and factories to meet "green production" standards.

Regarding key points to focus on when dealing with Vietnam-US relations, Dr. Nguyen Xuan Thanh from Fulbright University Vietnam mentioned that the agreed-upon contents between the leadership of the two countries created more favorable conditions and opened up markets further for the goods and services of each nation. This promotes robust economic, trade, and investment cooperation. Vietnam has proposed the US consider recognizing a market economy regime, and substantial steps toward the Indian Ocean-Pacific framework.

Vietnam enjoys a favorable position and high potential for attracting investment from US enterprises that are shifting from other countries. However, according to Thanh, the US no longer possesses strengths in the manufacturing and processing industries but is increasingly focusing on the service economy, emphasizing high-quality investments. Thus, to attract US investors and gain a competitive advantage, Vietnam needs to invest in renewable energy to provide sufficient renewable energy for production and business establishments. Vietnam's economic and industrial zones should also have the capacity to supply the required amount of renewable energy for investors.