Strong economic, security ties with Vietnam a priority: US Treasury Secretary Yellen

It is a priority for the U.S. to deepen its economic and security ties with Vietnam in the months and years to come, said Treasury Secretary Janet Yellen while meeting with Prime Minister Pham Minh Chinh in Hanoi Thursday.

Yellen's two-day visit is part of the Joe Biden administration’s efforts to bolster economic ties with Vietnam and diversify global supply chains.

"The United States considers Vietnam a key partner in advancing a free and open Indo-Pacific," she said at the meeting.

"Vietnam is also a close economic partner, with our two-way trade reaching record highs last year and the United States serving as Vietnam’s largest export market," Yellen added.

The Vietnamese PM said: "Vietnam always considers the United States as one of the most important partners."

Chinh noted he highly appreciated the fact that the two sides have maintained high-level contacts, especially the very successful phone call between Party General Secretary Nguyen Phu Trong and President Joe Biden at the end of March.

He spoke highly of the U.S. Treasury's objective and appropriate assessments of Vietnam's financial and monetary policy and management of exchange rates.

The PM suggested the two sides continue exchanging high-level delegations at all levels, strengthen the links between the two economies, and further boost bilateral economic, trade and investment ties. He underlined areas like green growth, innovation, high technology and supply chains.

Chinh also suggested the State Bank of Vietnam and the U.S. Treasury continue to maintain a mechanism to resolve related issues through close dialogs and exchanges on issues arising in the coming time amid global uncertainties.

He proposed the U.S. promote cooperation in responding to climate change, implement the Just Energy Transfer Partnership (JETP) Vietnam, support the country in developing renewable energy sources, and establish a carbon market.

The two sides agreed upon expanding supply chains and manufacturing chips and semiconductors as a priority in Vietnam's development strategy. Chinh noted Vietnam is promoting the building of mechanisms, preferential policies, technical infrastructure, governance, and human resources for these fields.

After the meeting, Yellen briefly sat on a bright green scooter during a visit to a factory on Hanoi’s outskirts where Selex Motors, a five-year-old Vietnamese startup, makes EV scooters and batteries.

Climate change poses an existential threat to the world but also provides a “key economic opportunity” and a way to build “greater resilience into our economies,” she said, adding that she found the facility “impressive.”

“I want to focus today on the importance of both of our countries working together to advance a global clean energy transition.”

Yellen said that the U.S. was committed to mobilizing over $15 billion to support Vietnam’s adoption of renewable energy as a part of the Just Energy Transition Partnership (JETP). The funds were promised by the G7 economies to help Vietnam phase out its reliance on fossil fuels. Similar incentives have been offered to South Africa and Indonesia.

The U.S. is working to evolve the Multilateral Development Banks, or MDBs, to better address global challenges like climate change in a way that complements their core poverty reduction goals, the Treasury Secretary said.

Yellen also met with State Bank of Vietnam Governor Nguyen Thi Hong the same day. She said the U.S. was supportive of Vietnam’s growth and economic transformation, which was good for the people of both countries.