Good prospects ahead for Vietnam – US relations
Vietnam and the United States have reactivated contact and exchanges of delegations in an effort to ramp up bilateral co-operation after two years of difficulties caused by the COVID-19 pandemic.
On the political and diplomatic front, mutual ties have continued to develop positively through high level visit exchanges and meetings, especially following the COVID-19 outbreak being brought under control.
They include the working visits to the US by State President Nguyen Xuan Phuc on the sidelines of the UN General Assembly in September, 2021, and by Prime Minister Pham Minh Chinh during the ASEAN – US Special Summit in May, as well as meetings between PM Chinh and US President Joe Biden, and special envoy on climate change John Kerry on the sidelines of the 26th UN Conference on Climate Change (COP26) in October, 2021.
Vietnam also welcomed many US officials to visit the nation, including Vice President Kamala Harris in August, 2021, Defense Secretary Lloyd Austin in July, 2021, special envoy John Kerry in February, and Deputy Secretary of State Wendy Sherman in June this year.
In addition, the two sides have maintained dialogue mechanisms in the form of online and through correspondence along with telephone calls.
During the meetings and various phone calls, the US side appreciated the Vietnamese position and reaffirmed its commitment to support a strong, independent, and prosperous country moving forward. It continued to attach great importance to relations with Vietnam and requested that both nations reevaluate their position to take further steps toửad strengthening relations, with priority to be given to economic - trade, security - defence, and healthcare co-operation.
The US is Vietnam’s largest export market, while the latter is the former’s ninth largest trading partner. The first five months of the year witnessed their two-way trade turnover rise by 26% year on year to nearly US$11.2 billion.
The two sides have kept implementing their action plan towards a harmonious and sustainable trade balance, whilst simultaneously maintaining dialogues to resolve outstanding issues in trade ties. During the US visit by PM Pham Minh Chinh in May, local firms of the two countries exchanged a score of economic deals with a total value of over US$30 billion.
As of March 2022, the US direct investment in Vietnam has reached US$10.3 billion, making the US the 11th largest foreign investor in the country. US firms are therefore keen to invest in areas of Vietnamese interests, such as infrastructure development, supply chain, and digital economy. Meanwhile, Vinfast, a leading EV manufacturer, signed a contract to build a US$4 billion EV and battery factory in North Carolina.
The two sides have been able to sustain an exchange of delegations and maintain contact in security and defence, with co-operation focused on overcoming war consequences and improving the country’s maritime capacity. Priority has been given to searching for the remains of US and Vietnamese soldiers missing in action, handling dioxin-contaminated land, and supporting people with disabilities.
Vietnam has actively co-ordinated with the US Agency for International Development (USAID) in implementing a Memorandum of Intent (MOI) on co-operation to improve the capacity of examining remains during the war. During the Vietnam visit, Deputy Secretary of State Wendy Sherman announced that the US would provide an additional US$19 million this year in support of ongoing US efforts in Vietnam.
Bilateral education co-operation has also yielded positive results, focusing on education-training and technology transfer. The US International Development Finance Corporation (DFC) announced the US Government’s US$37 million grant to Fulbright University Vietnam (FUV) to build a school in Ho Chi Minh City. In addition, volunteers from the US are expected to come to Vietnam in the coming months to teach English. Currently, Vietnam has six US-invested educational institutions in Hanoi, Ho Chi Minh City, Quang Ninh, Hai Phong, and Binh Duong.
With regard to medical co-operation and the COVID-19 control efforts, the two sides have supported each other in terms of medical equipment and vaccine access, while sharing experience in disease prevention and citizen protection. So far the US has supported Vietnam with nearly 40 million doses of vaccines, along with 111 deep freezers to preserve vaccines.
The US has sponsored the installation of a liquid oxygen system at Bach Mai hospital in Hanoi. It has also opened a regional office of the US Centre for Disease Prevention and Control in Hanoi during Vice President Kamala Harris’ visit. It was requested to donate CUE rapid test kits and transfer the latest mRNA vaccine technology and therapeutic drugs to Vietnamese partners.
Regarding regional and international co-operation, the two countries have closely worked together in addressing regional and international issues of mutual concern and COVID-19 prevention, especially within the framework of the UN Security Council and ASEAN. Recently, Vietnam and six other ASEAN countries participated in the collective discussions toward future negotiations of the Indo-Pacific Economic Framework for Prosperity (IPEFP) with the US and other partners, and attended the Major Economies Forum on Energy and Climate (MEF) chaired by the President of the US.
July 22, 2022 marks 27 years of the establishment of diplomatic ties between Vietnam and the US. With many cooperation opportunities ahead, the leaders and people of the two countries have grounds to believe their comprehensive partnership will continue to flourish in the near future.
