On February 3, 1994, then US President Bill Clinton lifted the trade embargo against Vietnam which had been maintained for 19 years, paving the way for normalization of diplomatic relations between the two countries. After the embargo, the US Department of Commerce moved Vietnam from Group Z, i.e., the group of countries subject to trade restrictions, to Group Y, which bears less trade restrictions.

On June 26, 1994, the US and Vietnam agreed on exchanging liason offices in a step to concretize the establishment of an official diplomatic relationship between the two countries. 

And on July 11, 1995, US President Bill Clinton announced the normalization of relations with Vietnam, opening a new chapter in the diplomatic history of the US and Vietnam.

On July 12, 1995, Vietnamese Prime Minister Vo Van Kiet declared the establishment of diplomatic relations with the US.

This allowed Vietnam to connect in all countries in the world and in many fields. This also served as the premise for Vietnam to gain other important foreign relation achievements, including joining ASEAN in 1995 and APEC in 1998.

One of the factors most mentioned after the normalization of Vietnam-US relations is trade. On October 17, 2021, when US President George W. Bush approved the Vietnam-US Bilateral Trade Agreement (BTA), it paved the way for the development of trade exchange between the two countries. Vietnam-US economic ties have been developing rapidly.

At a discussion held on the occasion of the 30th anniversary of the US lifting of the trade embargo (1994-2024), US Ambassador to Vietnam Marc Knapper affirmed that the event cleared the way for all the development steps in the Vietnam-US economic and trade ties.

From 1995 to 2022, Vietnam-US trade turnover reached $139 billion, increasing by 300 times over 1995.

Vietnam is now the eighth largest trade partner of the US and its largest trade partner in ASEAN. The US is the second largest trade partner and the largest export market of Vietnam. Particularly, the US has confidence in Vietnam’s importance in global supply chains.

Knapper said during the state-level visit to Vietnam last year, US President Joe Biden committed to help Vietnam develop the semiconductor industry and other high tech industries, as well as work with Vietnam to build a workforce for the 21st century.

The US is considering recognizing Vietnam as a market economy.

Can Van Luc, a member of the National Fiscal and Monetary Policy Advisory Council and the Vietnam National Committee for Pacific Economic Cooperation (VNCPEC), commented that the US decision on lifting the trade embargo was a lucid decision. After the embargo lifting, commercial banks and businesses began flocking to Vietnam, while investors from other countries began feeling secure when investing in Vietnam.

According to Luc, as Vietnam and the US have upgraded their relationship to a Comprehensive Strategic Partnership, the two countries need substantial projects and programs and a detailed plan for every field. There also should be a focal point that monitors implementation and provides information. The fields with great potential include investment in startups, renewable energy, and education and healthcare services.

Bui Quang Minh, known as a ‘shark’ on the “Shark Tank Vietnam’ TV Show, and now president of Beta Group, said when the embargo was lifted, he was just 11 years old and lived in a village in Vinh Phuc province. Later, he had the opportunity to study at Harvard University for a master’s degree. Since then, he has witnessed Vietnam-US relations grow, which have helped created great achievements in many fields.

Minh stressed that not only Vietnam can receive values from the US, but the US can also receive values from Vietnam, including innovations and optimization in price – which benefit the people of the two countries. He said he feels grateful as he lives in a time when the Vietnam-US partnership offers people like him and future generations values and other things unimaginable in the past.

Tran Thuong