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Mr. Do Thang Hai, Deputy Minister of Industry and Trade, speaks at the forum. |
On November 21, the Ministry of Industry and Trade, in collaboration with the American Chamber of Commerce in Vietnam (AmCham), hosted the Vietnam-US Trade Forum 2023 under the theme "Upgrade Relationships – Relaunch Businesses." During the forum, Mr. Do Thang Hai, Deputy Minister of Industry and Trade, acknowledged the certain economic impacts on Vietnam's exports to the US. Nevertheless, he underscored that these effects are temporary and are expected to be overcome by 2024.
Deputy Minister Do Thang Hai noted that there are positive signs of growth in the export volume of Vietnamese goods to the US market in the last months of the year. Numerous US corporations and distribution channels are not only intensifying their procurement of goods but also exploring opportunities to establish procurement channels and centers in Vietnam.
At present, Vietnam ranks as the 10th largest trading partner of the US (it held the 7th position in the same period last year), with a combined import-export value of around US$90.8 billion, constituting 2.4 percent of the total US import-export turnover. Meanwhile, Vietnam's exports to the US amount to $83.7 billion, making up 3.6 percent of the overall US imports.
In the context of a complex economic landscape, the majority of Vietnam's primary export commodities have posted negative growth rates from the beginning of the year until now. This trend is noticeable in categories such as furniture, footwear, clothing, and electronic recording and filming equipment. However, several items within the top 15 export groups have seen positive growth, including machinery, optical and medical measuring equipment, automatic data processing and encoding machines, various office machines and printers, as well as handheld tools and hydraulic pneumatic equipment.
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Ms. Susan Burns, Consul General of the US to Ho Chi Minh City, emphasizes that the US regards Vietnam as a crucial pillar in its economy. |
The representative of the US delegation, Ms. Susan Burns, Consul General of the US to Ho Chi Minh City, emphasized that the US regards Vietnam as a crucial pillar in its economy. The enhancement of the strategic relationship between Vietnam and the US has already yielded and continues to present economic development opportunities for both nations. Vietnam is poised to attract direct investment from US businesses, particularly in the semiconductor and mining sectors.
On the flip side, Vietnamese enterprises stand a chance to boost their capacities and extend the export of goods into the US market. Both parties will find various opportunities to work together in overcoming technical trade barriers and investing in businesses from each country. Additionally, the tight economic connection between the two nations will play a pivotal role in the potential recovery of global supply chains and the overall prosperity of the entire region.
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An overview of the forum |
At the forum, experts shared up-to-date information on the latest policies of the US. Based on this, they provided recommendations, solutions, and business directions, allowing enterprises to gradually position themselves and construct business strategies methodically and effectively amidst intertwined opportunities and challenges. This, in turn, contributes to inspiring the business communities of both countries to develop comprehensive approaches, expand import-export markets, and foster balanced and sustainable trade and investment activities between the two nations.
The forum was attended by over 350 delegates, including leaders from various ministries, trade and investment promotion agencies of many provinces and cities, business associations, and major manufacturing and exporting business communities nationwide.
The forum's discussion sessions, featuring the involvement of US State governors, have garnered high praise from businesses for fostering connections and establishing an effective channel for policy advice, experience exchange, and market information updates. It also supports enterprises in overcoming challenges and capitalizing on opportunities. Simultaneously, it provides opportunities for the business communities of both countries to present solutions to government agencies, aiming to enhance import-export activities and promote future trade and investment cooperation between Vietnam and the US.
The US delegation representative mentioned that the US government has earmarked $240 million for the development of the semiconductor industry ecosystem. This funding is specifically directed towards supporting US businesses with investment strategies in this sector in Vietnam.
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Mr. Daniel Nguyen, Vice Chairman of the House Committee on Economic Development and Small Business and a Member of the Semiconductor Committee in the Oregon House of Representatives, speaks at the forum. |
Regarding this issue, Mr. Daniel Nguyen, Vice Chairman of the House Committee on Economic Development and Small Business and a Member of the Semiconductor Committee in the Oregon House of Representatives, expressed that Vietnam holds substantial potential and opportunities for semiconductor development. The US has recently reviewed Vietnam's legal framework and has committed a $240 million investment to boost the semiconductor ecosystem. Notably, $40 million has been specifically allocated for a new project in this sector. Consequently, Vietnam should capitalize on its resources to advance its semiconductor industry.
According to Mr. Daniel Nguyen, Vietnam needs to swiftly establish a legal framework to drive the development of the semiconductor industry, mobilize private resources, and enhance the quality of workforce training for the semiconductor sector.
Intel continue to further expand investments in Vietnam
Regarding Intel Corporation, Mr. Ace Wilson, Finance Director of Intel Corporation Vietnam, said that Intel has invested $1.5 billion in Vietnam. From 2010 to the present, the corporation has exported goods worth $80 billion. In 2023 alone, Intel anticipates achieving a total export turnover of $10-11 billion. Notably, up to 70 percent of Intel's chip production serving the region originates from Intel's facility in Vietnam.
Concerning investment expansion in the coming time, representatives from Intel indicated that the corporation is implementing a strategy to diversify its manufacturing facilities across multiple countries. The most recent development in this strategy is the decision, made in June 2023, to invest approximately $33 billion in a manufacturing plant in Germany. This move is part of Intel's effort to broaden semiconductor production activities in Europe.
In response to a question from SGGP Newspaper’s reporter regarding information that Intel is shifting investments to another country instead of proceeding with its planned expansion of a factory in Vietnam, the corporation's representative clarified that there has been inaccurate information circulating in the media about the company's investment strategy. Intel remains committed to continuing to expand its investments in Vietnam further in the coming period.
Nevertheless, in conjunction with investment endeavors, numerous businesses at the forum emphasized the need for Vietnam to reassess its investment attraction policies. This involves enhancing transparency in information on land use and legal corridors related to taxes and fees and, especially, building clean energy infrastructure to facilitate businesses in attaining sustainable development goals.
Meanwhile, Mr. Nguyen Vinh Quang, CEO of FPT Semiconductor, a subsidiary of FPT Corporation, revealed that FPT has recently completed the acquisition of two companies in the US. FPT's investment strategy in this market is centered on advancing AI technology and the power chip series. As for the power chip segment, FPT aims to establish itself as a key provider in both the US and Vietnam.
Alongside its factory investments, FPT has developed an educational program aligned with US standards. It is projected that FPT Corporation will provide training for around 15,000 engineers in the coming years, empowering them with the skills to work in this field on a global scale.
