The caution was voiced by speakers at the recent ‘New US Policies: Impacts on Trade and Investment’ meeting, which was held in Ho Chi Minh City by the Investment and Trade Promotion Centre (ITPC) in partnership with the US-Vietnam Business Council and the Institute for Vietnam Initiatives, according to local news publication SGGP.
During the event, implications of the US’s shift towards new economic and foreign policy changes for US-Vietnam trade relations were scrutinised with the focus areas including commerce, tariffs, technology, financial systems, and investment flows.
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ITPC deputy director Cao Thi Phi Van projected that the total trade volume between Vietnam and the US was projected to exceed $132bn in 2024. Compared to the previous year, where Vietnamese exports to the US soared by 23.3% to nearly $119bn.
Conversely, imports from the US saw a 7.3% rise to $13bn. Consequently, Vietnam enjoyed a substantial trade surplus with the US amounting to $106bn.
US-Vietnam Business Council board of directors chairman Kevin Morgan pointed out that Vietnam’s major exports include items like footwear, furniture, machinery, and optical equipment. There is also growing investment within Vietnam’s high-tech landscape — particularly in sectors like microchips and semiconductors from businesses in America.
Morgan was quoted by news agency VietnamPlus as saying: “As Vietnam seeks to sustain its growth, it must remain vigilant and adaptable.”
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By GlobalDataHe added: “While the specifics of the new trade policies are unclear, it’s wise to prepare for various scenarios to continue business with the US.”
Vietnam currently hosts more than 1,400 projects with an aggregate registered capital nearing $12bn. In terms of investment in Ho Chi Minh City, the US holds third place among 110 countries and territories with a stake amounting to $1.55bn.
These statistics not only affirm the stature of the US as Vietnam’s preeminent export destination but also positions Vietnam as an integral player within ASEAN in the global supply chain hierarchy, ranking it as the eighth largest trading partner.
Do Ngoc Hung, who serves as the trade counsellor and leads the Vietnam Trade Office in the US, advised Vietnamese enterprises to engage with US importers and distributors to explore adaptable payment arrangements and risk-sharing strategies.
Furthermore, it is recommended that Vietnamese companies invest in cold storage facilities at a port on the US West Coast to create a distribution hub for their goods.
This strategy could then be extended to other regions such as the East Coast or Southern US, catering to various product lines. This approach hopes to cut down costs and give businesses an edge in delivering their products efficiently.
