AmCham Vietnam
Advocacy

AmCham Executive Director Mary Tarnowka is now in Washington, DC, meeting with USG officials and colleagues at the U.S. Chamber, U.S. ASEAN Business Council (US-ABC), and think tanks.  All recognize the importance and potential of the U.S.-Vietnam bilateral comprehensive partnership and the economic partnership. There also is increasing awareness about the severity of COVID outbreaks in the Southeast Asian region, including in Vietnam, and the impact on supply chains. And I heard urgent requests by Vietnamese Ambassador Ha Kim Ngoc for AmCham contributions of critically-needed medical equipment to help support the Vietnamese government’s COVID response, particularly in HCMC and the south.

But COVID cases aren’t just growing in Vietnam and Southeast Asia. There is also a surge in the United States – despite widespread availability of vaccines – caused in large part by the highly transmissible Delta variant. That surge, almost exclusively among the unvaccinated, means the United States once again has the highest number of new COVID cases in the world, surpassing Britain, Indonesia, India, and Brazil.

Partnering with Vietnamese Government on COVID-19 Response and Vaccine. Partnering with the Vietnamese government to support its efforts on COVID-19 control remains AmCham’s top priority. We continue to advocate for the United States to donate additional vaccines to Vietnam, and for Vietnam to distribute more vaccines to HCMC and the southern region, now the epicenter of Vietnam’s fourth wave. We welcome the clarification of Vietnamese government plans in Decree 3355, and encourage equitable distribution according to priority groups. We were thrilled to see the U.S. government donate another 3 million doses of Moderna vaccine to Vietnam this weekend. We plan to hold an event focused on Vietnam’s Role in Building Resilient Global Supply Chains: Managing the Current COVID Outbreaks with industry and both U.S. and Vietnamese government participation on August 5^th at 6PM; save the date!  We also are trying to do our best to keep you informed and support your business operations. Please keep us apprised on your COVID-related questions and concerns.

Section 301 Currency Punitive Actions Averted. While we recognize the current COVID outbreaks and lockdown measures in Vietnam are your most pressing business concerns, let’s celebrate a major win!  USTR determined on July 23rd that no action is warranted now on the Section 301 currency investigation, based in large part on the bilateral currency agreement announced by the Treasury Department earlier in the week. If USTR’s determination had been different, tariffs could have been imposed on Vietnamese exports to the US.  AmCham Vietnam, including AmCham Hanoi, together with over 70 business associations, signed onto a recent U.S. Chamber letter to USTR recommending against such punitive actions.  Links below to the advocacy letter, a recent Inside U.S. Trade article LINK, and USTR and TREASURY announcements  LINK. Note that the 301 timber investigation is ongoing, with active discussions between relevant U.S. and Vietnamese ministries and agencies, but reportedly on a positive track. No finding has yet been reported, the first step before USTR determines any necessary actions. Both 301 investigations, initiated in October 2020 under the Trump Administration, are scheduled to conclude by October 2, 2021.

Prospects for Strengthening U.S.-Vietnam Bilateral Trade and Investment Ties. While many I met with in the private sector would love to see the United States enter CPTPP, there is unanimous recognition that any move in that direction won’t be possible until after the November 2022 mid-term elections. There is strong interest to seek ways to strengthen trade and investment ties in the interim, though lack of clarity on how to do so under the Biden Administration’s “worker-centric” trade policy, beyond a need to address concerns of environmental and labor groups. It clearly means preventing forced labor such as that involved in Xinjiang cotton. Does “worker-centric” also include agricultural workers? Does it include the effect of trade on the cost and availability of consumer goods purchased by workers?  While those answers are not yet clear, the issues we focus on in our Environment, Social, and Governance Committee will likely be of increased interest and relevance to the U.S. Government under the Biden Administration.

The general consensus from what I have heard so far appears to be that the best prospects for Vietnam in the near-term are to ensure full implementation of 301 agreements, seek an enhanced Trade and Investment Framework Agreement (TIFA), avoid problematic digital trade regulations, and seek to participate in a possible U.S.- ASEAN (or smaller group) Digital Trade Framework, that could lay groundwork for a possible Digital Trade Agreement.

Breakfast with Vietnamese Ambassador to the United States Hà Kim Ngọc.  Ambassador Ngoc hosted me for a delicious phở gà breakfast with Economic Section colleagues. He thanked me for AmCham’s contributions to strengthening the comprehensive partnership, helping avert 301 currency sanctions, and advocacy to support US vaccine contributions.  He expressed deep gratitude for the 5 million doses of vaccines donated by the United States, and encouraged continued advocacy for additional vaccines.  He also made a plea for urgent contributions of critically-needed medical equipment and supplies, including ventilators, oxygen, ECMO, blood monitors, and COVID treatment drugs, especially to HCMC.

Amb. Ngoc and his team listened intently to AmCham recommendations on ways to continue business operations during COVID, including a focus on HCMC, Binh Duong and surrounding areas; expediting approval for imports of rapid antigen tests; support for worker housing; liberalized overtime rules; inclusion of those involved in the manufacturing of essential food and animal feed as priority groups; and strengthened inter-provincial coordination, especially on transportation.

Amb. Ngoc took on board concerns about recent draft digital economy decrees and agreed on the importance of a regulatory environment that welcomed foreign technology companies that are often key partners for innovative Vietnamese companies. He welcomed any possibilities to enter into negotiations for an U.S.- ASEAN Digital Trade Agreement.

He repeatedly stated that the U.S.-VN comprehensive partnership is win-win for both because of our many shared interests, not win, win for one-side only the Chinese way. And he said President Phuc had expressed his deep appreciation for the U.S. vaccine donations through stating the old proverb, “A friend in need is a friend indeed.”

If you have interest in these or any other advocacy matters that require AmCham support, please contact relevant Committee leaders and/or advocacyaction@amchamvietnam.com.