Star Fashion Co., Ltd. invests in building a factory specializing in knitwear and sportswear for export in Phu Nghia Industrial Park, Chuong My district, Hanoi, exporting to the US market. Photo (documentary) illustration: Tran Viet/VNA
Mr. Do Ngoc Hung said that in the context of the general economic situation, there are still many difficulties from the impacts of the COVID-19 pandemic and the disruption of supply chains, bilateral trade turnover between Vietnam and the US. still maintain a positive growth momentum. According to statistics in the first 9 months of 2022, two-way trade turnover reached about 96.2 billion USD, up 20% over the same period in 2021 (accounting for 17.2% of Vietnam's total import and export turnover with countries is 558 billion USD), of which export turnover reached 85.1 billion USD, up 23.7% (accounting for 30% of total export turnover of Vietnam in the first 9 months of 2022). The US is currently Vietnam's second largest trading partner and largest export market.
Vietnam is the 5th largest trading partner of the US, in terms of exports, Vietnam ranks 6th in terms of total export turnover to the US, accounting for about 4% of total US imports from partners. Vietnam's export turnover to the US continues to maintain its upward momentum, leading to a large trade surplus, reaching $74 billion in the first nine months of 2022, ranking third after China and Mexico, focusing on commodities. : textiles and garments reached USD 13.8 billion, up 19.4%, footwear reached USD 7.7 billion, up 38.7%, wood and wood products reached USD 6.6 billion, up 1.9%, aquatic products, agriculture products (including vegetables, fruits, coffee, pepper, cashew nuts, rice...), computers, electronic products and components reached 22 billion, up 32%, machinery and equipment and spare parts reached 15 billion USD, up 32%. 29%.
However, a number of items decreased in export turnover compared to 2021, namely cashew nuts reaching 630 million USD, down 19%, iron and steel reaching 700 million USD, down 11% (total import and export in 2021 reached 111.4 billion VND, reaching 111.4 billion USD). USD in which exports reached 96.2 billion USD and import reached 15.2 billion USD). The trend of decreasing imports from countries, including Vietnam, in September was 8.1 billion USD, down 17.9% compared to August, August compared with July decreased by 0.8 and decreased in July. 6.9% compared to June because the US Federal Reserve Bank (FED) raised interest rates, inflation in the US...
According to the Ministry of Industry and Trade, if maintaining the same speed as in the past 9 months, Vietnam's import and export in 2022 may reach over 740 billion USD, contributing to improving the balance of payments and increasing foreign exchange reserves. - In the first 9 months of 2022, the trade surplus reached about 7 billion USD, facilitating the completion of the economic development target for the whole year (in which, Vietnam's overall export target increased by 8% in 2022 according to the target). Government assigned).
However, the average trade growth of 20% per year leads to a number of items that can become subject to trade remedy investigation, such as recent cases including: honey, hardwood plywood, wooden cabinets, steel pipes with many types of goods and new forms of investigation associated with national security and trade issues on the basis of applying many laws (most recently the Commercial Act 1975 - 301… ). On that basis, the issue of market economy discussion was also directed by the Ministry of Industry and Trade to the Trade Office in the US to continue discussing and working with relevant US agencies to handle and resolve, in order to ensure In addition, the Trade Office also supports providing US business verification information to support Vietnamese businesses.
Following the direction of the leaders of the Ministry, the Trade Office continues to fight to protect the interests of Vietnamese enterprises, remove difficulties for Vietnamese exporters...; continued dialogue with the US on the issue of the market economy in the most recent specific anti-dumping investigation cases, information on Russian birch wood exported around Vietnam to the US, strengthening the mechanism early warning about trade remedy lawsuits as well as coordinate with business associations and related businesses to handle arising issues.
Counselor Do Ngoc Hung said that the Vietnam Trade Office in the US thoroughly understood and effectively implemented the direction of the Minister for 5 groups of tasks: (i) capturing, analyzing, evaluating and advising on US policy. have an impact on the economic relations between the two countries, (ii) in-depth research, mastering the needs, tastes and requirements of the market, (iii) strengthening the connection and investment cooperation in the industrial sector. , especially in fundamental industries, (iv) search, discover and connect diverse sources of raw materials to serve domestic industries and (v) actively seek and connect , attracting investment in the stages of production and supply of supplies, materials and equipment for the development of the energy industry, especially renewable energy.
In the coming time, the Trade Office will coordinate with related units to organize the Vietnam - US Trade Forum 2022 event with the theme of change - challenge - adaptation chaired and coordinated by the Ministry of Industry and Trade. in cooperation with the US Embassy in Vietnam, the US-ASEAN Business Council (USABC) and the Oregon State government in November 2022 in Ho Chi Minh City.
Also at the end of November 2022, the Trade Office will coordinate with the Vietnam Federation of Trade and Industry to organize a trade connection with about 40 businesses to explore the market and find partners in the world's fields. export strength of Vietnam. Coordinating to participate, introduce Vietnamese enterprises to participate in trade promotion activities, participate in annual fairs in the US to find partners and customers, innovate the form of trade promotion through activities. directly and online, improving the efficiency of trade promotion in the locality.
Referring to Vietnam's strengths when entering the US market, Counselor Do Ngoc Hung said that the strength and advantage is the strengthening of the Vietnam - US comprehensive partnership as well as the organization of Leaders' delegations. High-level visits and working meetings between the two countries create an important foundation for the development of bilateral economic and trade relations. In addition, a policy dialogue mechanism through the Vietnam - US Trade and Investment Council (TIFA) has been effectively implemented, helping to handle many thorny issues in economic and trade relations. In addition, the trade and geopolitical conflicts as well as the inflation situation will help Vietnamese goods increase their market share, occupying the gap of Russian and Chinese goods in the US. Promote the export of products that Vietnam can replace in the context of a shortage of supply from the global supply chain such as agricultural products, consumer goods, iron and steel; continue to work and request the US side to open more markets for Vietnamese agricultural exports. In the current context, the trend of shifting supply chains gives Vietnam the opportunity to expand production activities and participate more deeply in the global value chain.
Regarding challenges and difficulties, Counselor Do Ngoc Hung said that legal and technical barriers to trade are also significant difficulties for Vietnamese businesses. The United States is known for having a complex legal system and many technical barriers to trade. In recent years, Vietnamese enterprises often face difficulties in labor and environmental standards when exporting goods to the US; anti-dumping and anti-subsidy lawsuits; technical barriers and food safety… The US continues to implement many measures and trade barriers to protect domestic production. In addition, exporting goods to the US, businesses also face difficulties in costs and the requirements of the standard capacity of an enterprise.
Counselor Do Ngoc Hung recommended that some favorable factors are only momentary, so to take advantage of opportunities and develop sustainably, enterprises must actively improve competitiveness and improve technology. ; improve labor productivity; actively participate in regional and global production and supply chains; fully implement regulations of US authorities, avoid violating regulations on investment, labor, environment, origin of goods...
The US is a huge, diversified market with great demand for many types of goods because it is a multi-racial country, high GDP per capita and especially people in the US have a habit of shopping, financial services main development. This is actually the largest consumer market in the world. As a result, the quantity of each order is often large. The US is really a great opportunity for Vietnamese exports. Counselor Do Ngoc Hung said that businesses need to take advantage of the Vietnamese community in the US.
According to the results of the "Study on the American Community" conducted by the US Government, there are about 1.5 million Vietnamese living in the US, accounting for about 10.5% of the total number of Asian Americans, which is a large community. fourth after China, India, Philippines. In addition, convincing US importers who are importing from their familiar partners in other countries to switch to importing Vietnamese goods forces our businesses' products to be cheaper, better, and more exclusive. be more unique or have something more attractive than their familiar customers, thereby continuing to improve quality, appearance, and design.
Kieu Trang - Doan Hung (VNA)
