The US is committed to working with Vietnam for broad, strengthened, and supportive engagement as it continues its transition to a market economy, H.E. Marc Knapper, US Ambassador to Vietnam, told a panel discussion on the 30^th anniversary of the lifting of the trade embargo, held by the US Embassy in Hanoi on February 2.

The US trade embargo against Vietnam began in 1975, until President Bill Clinton announced its lifting on February 3, 1994.

“This helped pave the way for all of the terrific advances we have had in our two countries’ bilateral trade and economic relationship,” the Ambassador said.

Since the trade embargo was lifted in 1994 and the two countries normalized relations in 1995, in 2022 alone, bilateral trade turnover between the US and Vietnam reached $139 billion, an increase of 300-fold compared to 1995.

“This means that Vietnam is the US’s eighth-largest trading partner in the world and its largest trading partner in ASEAN, while the US is Vietnam’s second-largest trading partner and largest export market,” the Ambassador noted. “We firmly believe in the importance of Vietnam in terms of global supply chains.”

When President Joe Biden came to Vietnam last year, the US committed to work with the country to help it develop a semiconductor industry and other high-tech industries, and to work with Vietnam to build a workforce for the 21st century, such as computer scientists and engineers and IT workers who can help to work in the high-tech economy that Vietnam and the US aspire to create. “So we are very excited about the partnership we have ahead of us,” Ambassador Knapper said.

The US Department of Commerce is currently reviewing Vietnam’s non-market economy status, with a 270-day deadline to complete the task, which began last October and included seeking public comment. The US Government is committed to an impartial and transparent process that is consistent with international rules.

“We very much welcome all the great economic reforms based on market mechanisms that Vietnam has implemented, as well as Vietnam’s commitments,” the Ambassador added. “We look forward to continuing to work with Vietnam as we deepen and strengthen trade and investment relations.”

At the panel discussion, Dr. Can Van Luc, Member of the National Financial - Monetary Policy Advisory Council, said he believes that lifting the trade embargo on Vietnam was a smart decision by the US. “After the trade embargo was lifted, banks and businesses soon entered Vietnam,” he added.

In the context of Vietnam and the US having just upgraded relations to a comprehensive strategic partnership, experts believe that more specific action plans are needed for cooperation initiatives to come true, bringing benefits to businesses and people from the two countries.

Dr. Luc mentioned a number of fields of potential, including startup investment, renewable energy, education, and medical services.

Ms. Ha Thu Thanh, Chairwoman of Deloitte Vietnam, said Vietnam needs to improve its “soft infrastructure” and elements of the business environment and business ecosystem to truly attract investment. “We have commitments worth billions of dollars to invest in Vietnam, but to actually bring this capital here we need to pay attention to governance, building transparency and trust, and improving the market,” she explained.

Mr. Bui Quang Minh, CEO of the Beta Group, emphasized that within the relationship, not only does Vietnam learn many values from the US, the US also learns many from Vietnam, including innovation and price optimization, which will benefit the people of both countries.