Vietnam seeks balanced trade relations with US: Deputy PM

HANOI, Dec 18, 2019, The Hanoi Times. Vietnam is trying to purchase more goods from the US to narrow the US trade deficit with Vietnam, said Deputy Prime Minister Vuong Dinh Hue. Vietnam does not target to have a trade surplus with the US and looks for a more balanced trade relationship with the country, according to Deputy Prime Minister Vuong Dinh Hue, The Hanoi Times reported.

Vietnam is trying to purchase more goods from the US, part of efforts to narrow the current trade surplus, said Hue in a meeting with Vice President of Nike Chris Helzer on December 17, reiterating the country’s stance of not pursuing currency manipulation.

In the first 11 months of 2019, the US continues to be Vietnam’s largest export market with turnover of US$55.6 billion, up 28% year-on-year. Meanwhile, Vietnam imported goods worth US$13 billion from the US during the January – November period, leading to a trade surplus of US$42.6 billion with the US.

Following a recent meeting on the US – Vietnam Trade and Investment Framework Agreement (TIFA), both countries are cooperating to facilitate trading activities towards more balanced bilateral trade, Hue stated.

Making its presence in Vietnam in 1995, Nike’s shoe plant in Vietnam is the largest of its kind globally that has contracts with 100 local suppliers and employs directly and indirectly 500,000 workers.

The plant produces 300 million pairs of shoes annually with export turnover of US$6.7 billion in 2019.

Nike’s Vice President Helzer highly regarded the quality of Vietnamese labor force and expressed strong belief in the country’s business environment.

Helzer revealed plan to train high quality human resources of Nike’s plants in Vietnam and seeks the government’s support for the US company to sign contracts to use renewable energy sources.

Deputy PM Hue said Vietnam has been improving the business environment and enhancing competitiveness, while creating favorable conditions for the successes of foreign investors, including those from the US.

Vietnam would continue to offer incentive polices for hi-tech and environmentally friendly projects, particularly with foreign investors willing to transfer technologies to their Vietnamese partners.

Hue asked Helzer to continue supporting Vietnam – US trade relations, including the expanded use of Vietnamese supplies for greater localization rate and supporting local enterprises for joint development.

Hue also suggested Nike provide exclusive products for the upcoming SEA Games 31 that will be hosted in Vietnam in 2020, which is also the year when Vietnam and the US celebrate the 25th anniversary of establishment of diplomatic relations.

The Vietnamese government is committed to ensuring Nike’s long-term and sustainable businesses in Vietnam, stressed Hue.