VietNamNet Bridge - Vietnam is becoming an increasingly important trading partner of the United States in Southeast Asia given their strong bilateral trade expansion, which the American Chamber of Commerce in Vietnam (AmCham Vietnam) in HCMC puts at nearly US$18 billion for this year.

Jocelyn Tran, chairwoman of AmCham HCMC, told the Vietnam-U.S. Business Forum Year-end Dinner here on Tuesday that annual two-way trade between the two countries would reach the new level from less than US$1 billion about 15 years ago. This substantial growth is led by the apparel, footwear and furniture industry sectors.

Consumer products such as apparel, footwear, and furniture make up about two-thirds of Vietnam’s total exports of some US$14.7 billion to the U.S. in 2010. Apparel shipments to the U.S. are forecast to stand at US$6.2 billion this year as against US$5.4 billion in 2008.

The U.S. foreign trade statistics showed the U.S. trade in goods with Vietnam slightly dropped to more than US$15.3 billion last year from US$15.69 billion in 2008, mainly due to impact of the global economic downturn.

However, Tran was optimistic that the U.S.-Vietnam bilateral trade would double in the next decade.

“I am confident that by 2020, annual bilateral trade between our two countries will reach US$35 billion or more, or doubling this year’s level, and Vietnam will be one of the States’ most important trading partners in Southeast Asia,” she said.

The dinner was organized by AmCham HCMC in cooperation with the Vietnam Chamber of Commerce and Industry (VCCI) to mark 15 years of Vietnam-U.S. normalization of relations and 10 years of the signing of the Vietnam-U.S. Bilateral Trade Agreement.

Trade and investment had been the core parts of Vietnam-U.S. relations over the past 15 years, HCMC Vice Chairwoman Nguyen Thi Hong told the dinner. Le Thanh An, U.S. Consul General to HCMC, and VCCI President Vu Tien Loc were also speakers at this event.

Hong said HCMC had become the destination of first choice for U.S. investors in Vietnam, and the evidence was that Intel recently opened its advanced chip assembly and testing facility in Saigon Hi-tech Park in a US$1-billion investment project. “This has sent a good message to the international business community in general and the U.S. investors in particularly.”

Hong expected the Vietnam-U.S. Business Forum, which made a debut earlier this year, would support Vietnam’s economic growth and expanding relations with the U.S. in the years to come besides enabling companies of the countries to capitalize on new opportunities.

The remarkable development of Vietnam-U.S. trade and investment links in the past years has laid firm foundations for the future relations between the two countries. “We are also looking forward to even greater development based on our continuing close cooperation with our Vietnamese business and government partners,” Tran said.

According to AmCham HCMC, U.S. companies in Vietnam in general and in HCMC in particular have been very successful over the years. They, especially the major retail chains such as Nike, MAST Industries and Target are driving the bilateral trade growing as they purchase products and export stateside.

Apart from export-oriented manufacturing industries, U.S. companies have also been present in the hospitality, transportation, banking, finance and insurance sectors. They are assisting in transfer of technology and human development in Vietnam.

More U.S. companies are exploring the Vietnamese market. According to AmCham HCMC, more than 25 top “Fortune 500” U.S. companies visited the country in the first half of 2010 to assess opportunities in higher-value-added manufacturing and service industries.

Tran said Vietnam would attract more U.S. investors in modern manufacturing and service sectors including electricity, transportation, ICT, distribution/logistics/supply chain management, and education and health care if the Government created a positive environment for investment.

Source: SGT