A seafood processing line for exports. Việt Nam-US two-way trade rose from over US$400 million in 1995 to more than $90 billion in 2020. — VNA/VNS Photo Vũ Sinh

HÀ NỘI — Việt Nam-US trade ties have enjoyed impressive growth over the 26 years since the normalisation of diplomatic ties.

Looking back at the past 20 years in international trade, there is no relationship which has such a fast growth rate like that of the Việt Nam-US trade relationship, said Nguyễn Xuân Thành, senior lecturer at Fulbright School of Public Policy and Management in Việt Nam.

Prof. David Dapice, leading expert on development economics in Southeast Asia, Harvard Kennedy School, Harvard University, used the word “spectacular” to describe the development of economic cooperation between Việt Nam and the US.

Two-way trade rose from over US$400 million in 1995 to more than $90 billion in 2020.

Việt Nam’s total export turnover to the US from $1 billion in 2000 increased to $10 billion in 2007, mainly thanks to the bilateral trade agreement taking effect in 2001. After 2007, Việt Nam's exports continued to increase, partly due to the shift in the global supply chain, as foreign investors entered Việt Nam to take advantage of cheap labour, David Dapice said.

Over the last five years, Việt Nam’s export value to the US has increased by 230 per cent, while exports from the US to Việt Nam also jumped 175 per cent. The US has become Việt Nam's largest importer, while the latter has become the former’s 10th largest trading partner.

Deputy Foreign Minister Nguyễn Quốc Dũng emphasised that the Việt Nam – US relations had made significant strides since 1995, with the most salient aspect being the economic cooperation.

With a comprehensive partnership, trade and investment flows from the US have paved the way for Việt Nam to further its international economic integration and gradually boost growth, thereby moving away from the status of a less developed to a middle-income country.

For US businesses, Việt Nam’s fast-growing market of 100 million people with a young, industrious workforce seems to be highly promising. The country’s increasing demands for development and its location in one of the most dynamically growing areas of the world also offer great opportunities.

Meanwhile, the US, as the biggest importer in the world with abundant capital and technology, is a potential destination for Vietnamese exporters.

What is more important is that the governments and business communities of both countries want to promote economic and trade co-operation. — VNA