The United States will continue to be Vietnam’s largest export market in the last 6 months of the year. In particular, if Vietnam-US trade turnover reaches over 100 billion USD, it will be the third consecutive year that the two countries have reached this milestone.
Speaking to the Government Electronic Newspaper, Mr. Do Ngoc Hung, Trade Counselor, Head of the Vietnam Trade Office in the United States, said that according to data from the International Trade Commission, US Department of Commerce (USITC), by the end of May 2024, the two-way trade turnover between Vietnam and the United States reached 54.8 billion USD (up 15% over the same period in 2023).
This is a positive growth rate when most countries directly competing with Vietnam have low or below 0% growth.
Expected Vietnam-US trade turnover to reach over 100 billion USD
Meanwhile, according to data from the General Department of Vietnam Customs, in the first 6 months of 2024, Vietnam's exports to the United States reached 55.1 billion USD, up 24% (accounting for 30% of Vietnam's total export turnover). The trade surplus reached 48 billion USD, contributing to Vietnam's total trade surplus of 12 billion USD.
The United States will continue to be Vietnam's largest export market in the last 6 months of the year with the expectation that this will be the third consecutive year that the total export turnover of the two countries reaches over 100 billion USD and exceeds the target set at the beginning of the year.
Analyzing the growth momentum of the two countries' trade in recent times, Mr. Do Ngoc Hung said that Vietnamese goods are increasingly popular in the US market due to their continuously improved quality, updated trends and competitive prices. On the other hand, changes in the supply chain as well as the wave of investment shifts have contributed to enhancing the production capacity of Vietnamese enterprises. This also creates opportunities and room for Vietnamese goods to increase exports to the world in general and the US market in particular.
However, along with the development of trade turnover, Vietnam's export goods to the United States are currently facing many barriers, trade defense measures through anti-dumping and anti-subsidy investigations and evasion of trade defense tax measures as well as transshipment of goods.
Proactively responding to trade defense
“As of June 2024, the United States is the country that initiated the most trade defense investigations on Vietnam's export goods, with 11 cases. Not only is it the market with the most trade defense investigations on Vietnam's export goods, but the United States is also the member with the most trade defense investigations among members of the World Trade Organization (WTO) with many other markets,” Mr. Do Ngoc Hung informed.
The reason is that increasing imports means that domestic competitive pressure on US manufacturing industries is increasingly fierce. In that context, US businesses will increase the use of this tool to limit imports and reduce competitive pressure.
The export industries that the US has sued for trade defense have turnover ranging from low to high-value items with large market shares and turnover, such as: steel products, seafood (shrimp, pangasius), machinery and equipment, wood, furniture, paper bags, plastic bags, aluminum, etc. and recently, paper plates.
Therefore, the Head of the Vietnam Trade Office in the US noted that Vietnamese export businesses need to identify the risk of being sued for trade defense that will always exist along with increased exports and need to be proactive in their response plans.
“The number of lawsuits will continue to increase in the coming time when the US and world economies are in crisis, the US manufacturing industry is facing difficulties, and especially in the context that the US government needs the support of voters in the upcoming US presidential election (the Ministry of Industry and Trade has directed the DOC's preliminary conclusion on anti-dumping tax on Vietnamese raw honey),” Mr. Do Ngoc Hung warned.
The Vietnam Trade Office in the US recommends that businesses need to carefully study the laws and procedures for US trade defense investigations, and at the same time prepare information and documents in case of an incident.
In case of an incident, businesses need to actively coordinate with Vietnamese authorities, such as the Department of Trade Defense (Ministry of Industry and Trade) and the investigation agency of the US Department of Commerce in providing full information as requested.
The Ministry of Industry and Trade (Department of Trade Remedies, Trade Office) continues to support and guide businesses to effectively respond to trade defense investigations by the United States (DOC). Along with that, coordinate and cooperate with the investigating agency in providing information, receiving inspection delegations at enterprises and fully participating in the steps prescribed by US law, especially in the context of DOC expanding its authority as well as supplementing regulations on anti-dumping and anti-subsidy investigations (regulations on cross-border subsidies, taking into account factors such as environment, labor, intellectual property, etc.).
Source: Government Newspaper - Phan Trang
