HCM City, Jun 26, 2012. Despite the difficult domestic and international economic environment, Vietnam – U.S. trade in 2011 continued its steady increase, up almost 20% over 2010. Based on four months trade data from the U.S. Department of Commerce, bilateral trade may increase by about 10% in 2012.
Total bilateral trade in 2011 was about US$ 21.8 billion, with Vietnam’s exports to the U.S. about $ 17.5 billion (up 18%), and imports from the U.S. about $ 4.3 billion (up 17%), demonstrating once again that manufacturing foreign direct investment (FDI) and trade are strong and stable factors that support Vietnam’s economic and social development.
Total Vietnam – U.S. trade in 2012 may reach about US$ 24.0 billion, with Vietnam’s exports to the U.S. about $ 19.3 billion (up 10%), and imports from the U.S. about $ 4.7 billion (up 9%). This estimate is based on four months data from the U.S. Department of Commerce (see source below).
Growth of Vietnam’s apparel exports to the U.S. is likely to slow because of increasing costs, increased competition from countries such as India, Indonesia, Mexico, and Bangladesh, not to mention Cambodia and Myanmar, and reduced demand in the United States. The hope is that exports of “modern manufacturing” and services will take up the slack.
If present trends continue, Vietnam – U.S. trade in 2020 may reach about US$ 45 billion a year, Vietnam’s exports to the U.S. about US$ 36.4 billion, and U.S. exports to Vietnam about US$ 8.6 billion.
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Source of data
|US Department of Commerce Trade Data|
|US Department of Commerce Apparel Imports Date|
|Vietnam Trade Data: General Statistics Office of Vietnam|
More trade data from the U.S. Department of Commerce
|US Imports fr Vietnam by end-use category, 2002-2011 (latest data available)|
|US Exports to Vietnam by end-use category, 2002-2011 (latest data available)|
U.S. trade with Vietnam and other ASEAN countries
Click this link to see how Vietnam-U.S. trade compares with other countries in the ASEAN region (to be provided).
Additional Background about Key Trade and Investment Agreements
U.S.-Vietnam Bilateral Trade Agreement – After 5 years (2002-2006) – Executive Summary This report assesses the impact of implementing the U.S.-Vietnam Bilateral Trade Agreement (BTA) on Vietnam’s trade, foreign investment and economic structure over the five years following its coming into force on December 10, 2001. It particularly focuses on bilateral relationships between the two countries in the context of the parallel and mutually reinforcing process of Vietnam’s accession to the World Trade Organization (WTO), completed on January 11, 2007. The report is co-authored by research staff from the Vietnamese Ministry of Planning and Investment’s Central Institute for Economic Management (CIEM), the Ministry’s Foreign Investment Agency (FIA), and the Support for Trade Acceleration (STAR Vietnam) Project funded by the U.S. Agency for International Development (USAID). Includes:
• Executive Summary (17 pages, pdf file)
• Powerpoint Presentation with Highlights of the Report (ppt file)
• Full Report: Assessment of the 5-Year Impact of the BTA on Vietnam’s Trade, Investment, and Economic Structure (146 pages, pdf file)
Update and Background on Vietnam’s WTO Accession and Implementation (including Apparel Trade), with a Summary and Overview of Vietnam’s WTO Accession Agreement, and also links to downloads of complete information on the Working Party Report (260 pages), Commitments on Goods (560 pages), Commitments on Services (60 pages). Also, includes USTR Fact Sheets on U.S.-Vietnam WTO Bilateral Market Access Agreement, General Overview, Agricultural Goods, Industrial Goods, Services, Textiles and Apparel. Click the link above for more information.
Outlines of the Trans-Pacific Partnership Agreement (TPP) At the APEC 2011 Summit in Hawaii, APEC Leaders announced the achievement of the broad outlines of an ambitious, 21st-century Trans-Pacific Partnership (TPP) agreement that will enhance trade and investment among the TPP partner countries, promote innovation, economic growth and development, and support the creation and retention of jobs. Five defining features will make the TPP a landmark 21st-century trade agreement, setting a new standard for global trade and incorporating next-generation issues that will boost the competitiveness of TPP countries in the global economy. Click the link above for more information.
ASEAN Economic Community (AEC) – 2015 Each ASEAN Member Country shall abide by the the ASEAN Economic Community (AEC) Blueprint, and implement it by 2015. The AEC Blueprint will transform ASEAN into a single market and production base, a highly competitive economic region, a region of equitable economic development, and a region fully integrated into the global economy. The AEC Blueprint including its strategic schedule is annexed to this Declaration of ASEAN Heads of State/Government, Nov 2007: ASEAN Economic Community (AEC) Blueprint 2015.
Balance of market access opportunities and concessions
The Vietnam – United States Bilateral Trade Agreement indicates that there should be a balance of “market access opportunities” and “concessions.”
“The Parties shall seek to achieve a satisfactory balance of market access opportunities through the satisfactory reciprocation of reductions in tariffs and nontariff barriers to trade in goods resulting from multilateral negotiations.”—U.S. – Vietnam Bilateral Trade Agreement, July 13, 2000 Chapter I, Article 3. General Obligations with Respect to Trade.
“The Parties agree to establish a Joint Committee (“Committee”) on Development of Economic and Trade Relations between Vietnam and the United States of America. The Committee’s responsibilities shall include the following: B. ensuring that a satisfactory balance of concessions is maintained during the life of this Agreement;”—Chapter VI, General Articles, Article 5. Consultations.