Its Time to Take The Bilateral Trade Relations Between US and Vietnam to Next Level
It’s been close to twenty-seven years since the bilateral trade agreement was formed and signed between the United States and Vietnam.
THE BEGINNING OF BILATERAL TRADE BETWEEN THE UNITED STATES AND VIETNAM
It’s been close to twenty-seven years since the bilateral trade agreement was formed and signed between the United States and Vietnam. From then till now, the trade relations and friendship between the United States and Vietnam are growing and strengthening. The bilateral relations between the countries are increasing on all fronts – political, financial, religious, and security.
Recently, in the month of November 2022, the engagement of the United States boosted with southeastern Asia as the President of the United States, Joe Biden, and Vice President of the USA, Kamala Harris attended numerous summits which gave the US a chance to get associated with the ASEAN countries.
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RECENT INSIGHTS ON THE BILATERAL TRADE BETWEEN THE UNITED STATES AND VIETNAM
As per the latest insights and updates, Biden is very much interested to grow relations with Vietnam as it is an emerging nation and has a spectrum of opportunities in the future. Moreover, the labor cost in Vietnam is also very affordable and efficient. The booming economy of Vietnam and its geographical location also attract the United States.
Since the inception of the bilateral trade between the United States and Vietnam in the year 1995, the relations between the nations are expanded and grown at a very good pace. Apart from this, the bilateral trade between the nations has grown due to normalization. Now, the US invests approximately USD 2.8 billion annually in the markets of Vietnam. Not only this, but in the education sector also, both countries are very well connected. To Support this statement, we would like to mention that every year, Vietnam sends roughly 31,000 students to the US to complete their higher or elementary education.
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STATISTICAL ANALYSIS OF THE BILATERAL TRADE
To support the statements that we made till now, we are now going to share some statistical insights to portray the current scenario of Bilateral trade between these countries. So, as per US Export Data for the month of October 2022, the country exported goods worth USD 880 million to Vietnam. On the other hand, as per US Import Data of the same month, it imported goods worth USD 11 billion from Vietnam. This resulted in a negative trade balance of approximately USD 10.1 billion. By comparing the trade statistics with the previous year, i.e., October 2021, exports from the US rose by USD 89.5 billion and imports rose by USD 1.84 billion.
FOR MORE INFORMATION ABOUT US Trade Data, do visit https://www.usimportdata.com/
In the month of October 2022, the major products, as per Vietnam Import Data which were imported from the United States were:
- Aircraft and spare parts (USD 80.1 million)
- Integrated circuits (USD 71.5 million)
- Telephones (USD 65 million)
- Hydrogen (USD 62 million)
- Starch Residue (USD 37.8 million)
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Numerous goods were exported also from Vietnam to the US as mentioned in Vietnam Export Data for the month of October 2022. They were as follows:
- Telephones (USD 2.06 billion)
- Furniture (USD 685 million)
- Semiconductor devices or chips (USD 457 million)
- Headphones and mics (USD 439 million)
- Footwear (USD 390 million)
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UPGRADATION OF BILATERAL TRADE RELATIONSHIP TO STRATEGIC PARTNERSHIP
By taking into consideration the statements provided by the high-level officials who visited Vietnam, specifically Hanoi, we get to know that they mentioned openly saying that the bilateral trade relationship between the United States and Vietnam should be taken a step forward and changed to a Strategic Partnership. A strategic Relationship is a kind of partnership where two or more companies, individuals, or countries share resources so that all the people involved get benefits. In past years, this idea has come up several times, but due to some reason or other, it didn’t materialize.
Now, if the US wishes to establish any strategic partnership with Vietnam, then it should try continuously, but in a quiet manner to materialize this by the end of its present presidential term. It should try to resolve all the persisting issues with Hanoi so as to establish a strategic relationship.
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CONCLUSION – OUR FINAL VERDICT
We really hope that till now you are equipped with the proper and complete knowledge and information about the past, current, and future scenarios of the bilateral trade between the US and Vietnam. In the end, we have some more insights for you which state that in the month of October 2022, the rise in exports from the US to Vietnam was due to the increased exports of goods like oil seed flower, soybeans, and recycled paper. On the other hand, the growth of exports from Vietnam was due to the increased exports of headphones and mics, furniture, and Telephones. If this trend is maintained in forthcoming years, then we are pretty sure that the friendship between these two nations would become even stronger and the trade data of both nations would rise several folds.
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