Vietnam needs to grab opportunities to reduce its trade surplus with the US.
Adam Boehler, CEO of the Development Finance Corporation (DFC), at the working session with the Vietnamese Ambassador to the US Ha Kim Ngoc on June 2, said that DFC is implementing a series of plans to support investment projects in developing countries, especially projects in the fields of energy, infrastructure and digital economy.
Vietnamese Ambassador to the US Ha Kim Ngoc
DFC has interest in supporting development projects in Mekong Sub-region as well as projects on manufacturing strategic products in the US supply chain.
Following this strategy, DFC always attaches great importance to Vietnam and considers Vietnam as a preferred partner in US cooperative projects.
Dinh Trong Thinh from the Finance Academy said this is good news which ‘comes once every 100 years’ which Vietnam should not miss.
The US supply chain is a closed chain which has existed for a long time, and Vietnam now has the chance to join it after being disrupted. When the US-China trade war broke out, many US enterprises began thinking of leaving China and the movement has been accelerated by the Covid-19 epidemic.
|It would be costly to relocate production out of China. However, the US enterprises understand that they have to diversify supply sources and production, and not rely on any country.|
It would be costly to relocate production out of China. However, the US enterprises understand that they have to diversify supply sources and production, and not rely on any country.
“A high number of US enterprises have left China for other countries to diversify their investment activities. I believe that this is a golden opportunity for Vietnam to join the US supply chain,” Thinh said.
If Vietnam can do this, it will be able to reduce the trade surplus with the US and reduce the trade deficit with China. This will also help Vietnam build up an autonomous economy. More importantly, Vietnam can diversify the input material supply sources, diversify partners and make products which can meet international standards.
“Vietnamese enterprises are making products in accordance with standards of their own. However, when they cooperate with American and European enterprises, they will have to meet American and European standards, or international standards,” Thinh said. “If so, Vietnam’s products and technologies will be at higher levels."
By that time, Vietnam’s enterprises will not only diversify input supply sources, and establish relationships with all partners in the world, but they will also see products being provided to any clients.
If so, the production efficiency is higher, and Vietnam will not be dependent on anyone. They can satisfy the requirements on product origin stipulated in FTAs: at least 40 percent of the value of products must be made in Vietnam or inner-bloc countries to be eligible for preferential tariffs.
The economy won’t successfully grow if money is only poured into the pockets of a few people, while the majority of people face difficulties and have to live in a polluted environment, experts say.
Hoping that Vietnam will be able to catch the investment flow leaving China, IZ developers have hurried to implement their projects.