Do Ngoc Hung, trade counselor and head of the Vietnam Trade Office in the US, said that according to data from the US International Trade Commission (USITC), by the end of May the two-way trade turnover between Vietnam and the US had reached US$54.8 billion, up 15% over the same period from last year. This represents a positive growth rate as most countries directly competing with Vietnam had low growth rates of below 0%.

Meanwhile, the General Department of Vietnam Customs reported that in the first half of the year, Vietnamese exports to the US fetched US$55.1 billion, up 24% on-year, accounting for 30% of the nation’s total export turnover.

The trade surplus hit US$48 billion, thereby contributing to the total Vietnamese trade surplus of US$12 billion throughout the reviewed period.

The US will remain the country’s largest export market in the second half of the year, with the expectation that this will be the third consecutive year that the total export turnover between both sides reaches more than US$100 billion and exceeds the target set at the beginning of the year.

Analysing the trade growth momentum between the two countries in recent times, Hung said that the relationship between both nations has been increasingly growing. In 2013, the two sides established a comprehensive partnership and they officially upgraded their relations to that of a comprehensive strategic partnership in 2023.

Furthermore, Vietnamese goods are increasingly popular in the US market thanks to their continuously improved quality, updated trends, and competitive prices.

On the other hand, changes occurring in the supply chain, as well as the wave of investment shifts have contributed to enhancing the production capacity of Vietnamese enterprise. This also serves to create opportunities and room for local goods to increase exports to the world in general and to the US market in particular, Hung added.

However, the head of the Vietnam Trade Office in the US stated that along with the development of trade turnover, Vietnamese export goods to this highly lucrative market are currently facing numerous barriers. This typically includes trade defence measures through anti-dumping and anti-subsidy investigations and evasion of trade defence tax measures, as well as goods transfer.

As of June, the US initiated the most trade defene investigations into Vietnamese exports with 11 cases. The reason behind this is that increasing imports means domestic competitive pressure on US manufacturing industries is increasingly fierce. Amid this context, US businesses will increase the use of this tool to limit imports and reduce competitive pressure, Hung analysed.

The export industries that the US has sued for trade defence have turnover ranging from low to high-value items, with large market shares and turnover. This includes items such as steel products, seafood like shrimp and pangasius, machinery and equipment, wood, furniture, paper bags, plastic bags, aluminum, and paper plates.

Therefore, Hung noted that Vietnamese export enterprises need to determine the risk of being sued for trade defence, which will always exist along with increased exports and the need to be proactive in their response plans.

“The lawsuits will continue to increase in the coming time when the US and world economies are in crisis, the US’ production industry is facing plenty of difficulties and especially amid the US government needing the support of voters in the upcoming US presidential election. The Ministry of Industry and Trade has directed the US Department of Commerce (DOC)'s preliminary conclusion on anti-dumping tax on raw honey from Vietnam,” Hung said.

He also recommended that businesses should carefully study legal regulations and procedures for US trade defence investigations, as well as preparing information and documents in case of an incident.

In case of an incident, firms should actively co-ordinate efforts with Vietnamese authorities, such as the Trade Remedies Authority of Vietnam (TRAV) under the Ministry of Industry and Trade (MoIT) and the investigation agency of the US Department of Commerce in a bid to provide complete information as requested.

Currently, the general trend is that major markets, including the US, continue to apply trade barriers in terms of technology, hygiene, safety, the environment, and social responsibility to protect domestic production and consumers, thus increasing compliance costs for exporters.

Meanwhile, for a developing and populous country like Vietnam, these key export industries play an important role in socio-economic development, bringing export surplus to the economy, labour mobility, and economic restructuring.

Therefore, the head of the Vietnam Trade Office in the US have committed and affirmed that the Trade Remedies Authority of Vietnam under the Ministry of Industry and Trade and the Trade Office will continue to support and guide businesses to effectively respond to trade defence investigations by the DOC.

Moreover, competent Vietnamese agencies will co-ordinate and co-operate with the investigation agency to provide information, receive relevant inspection teams, and fully engaging in the steps prescribed by US law, especially in the context of the DOC expanding its authority. This is along with supplementing regulations on anti-dumping and anti-subsidy investigations such as regulations on cross-border subsidies, thereby taking into account factors such as the environment, labour, and intellectual property.

Source: VOV