Tiếng Việt
Vietnam and US have trade with each other. But in the past, two country had conflict in militarily and politically. US embargoed Vietnam’s economy from 1975 to 1994. Vietnam removed its in 1994 and officially normalized diplomatic relations with US in 1995. Currently diplomatic relations between two countries are considered strategic partner with billions of dollars worth of goods trade each year.
Read more: 7 reasons that investors should invest in Vietnam
Mục lục
1. United States – Vietnam Bilateral Trade Agreement (BTA)
Vietnam – US Bilateral Trade Agreement (BTA) officially effect on 10 December 2001. This Agreement covers conditions of goods, protection of intellectual property rights, investment protection and service exchange. 140-page agreement take 5 years of negotiation to have effect. BTA has created the necessary conditions for goods and business of the two countries to have fair access to each other’s markets.
When the BTA went into effect the U.S. immediately provided Vietnam’s goods and companies access to the U.S. market (represents nearly a third of world GDP) on the same basis to other countries with which US has normal trade relations. BTA is the most comprehensive trade agreement that Vietnam and US has signed to date.
2. Vietnam joined WTO (World Trade Organization)
Vietnam joined WTO in 2006 and officially became a member in 2007. Vietnam applied to join WTO in 1995 and it took more than 10 years of negotiations to become an official member. Vietnam and US are both members of WTO. This is the basis for goods and services between the two countries to increase turnover.
Despite the BTA, Vietnam and US still have 12 bilateral negotiations to reach a memorandum of agreement on Vietnam’s accession to the WTO on May 31, 2015. Computer products, semiconductors of US is subject to 0% tax while 4% of industrial products are subject to rates below 15%. Service providers from the US have access to market like telecommunication (including satellites), finance and energy.
3. Trade exchange between Vietnam and US
In 2018, US goods and services trade with Vietnam totaled estimated 62,6 billion USD. Exports were 12,1 billion USD and imports were 50,5 billion USD. In 2019, US became Vietnam’s largest export market, accounting 28,5% of total exports. Key products include textiles; footwear; phones, electronic components and computers. The total export value reached 66.6 billion USD.
Investment is also a bright segment in Vietnam – US economic relations. By the end of 2019, the total investment of US in Vietnam reached more than 11 billion USD, ranking 11th among countries and territories investing in Vietnam.