Following an unprecedented double upgrade of diplomatic ties, Vietnam and the U.S. are in a position to have the most open and frank dialogues about sensitive and uncomfortable issues related to trade and investment, including the recognition of Vietnam as a market economy, U.S. ambassador to the Southeast Asian country Marc Knapper has stated.
In the lead-up to President Joe Biden’s visit (September 10-11) to Vietnam, discussions touched on related issues, for example, market economy status, Knapper said in response to The Investor’s question at a press briefing in Hanoi on Wednesday.
During Biden’s visit, the two former war foes elevated their ties by two notches to a comprehensive strategic partnership, the highest designation in Vietnam’s diplomatic hierarchy, on a par with China, Russia, India and South Korea.
The upgrade sends a strong signal to both countries’ peoples and to the world that “our futures are bound together”, and “Vietnam’s successes are America’s successes, and America’s successes are Vietnam’s successes”, the ambassador said.
The Vietnamese government has strong interest in addressing trade-related issues. The two countries have the mechanisms in place to discuss hard subjects. “This [discussion] will continue because of the mutual respect and trust that we have for each other,” the ambassador added.
Under the Trump administration, Vietnam was put on the watchlist for currency manipulation but was removed from the list in April 2021, three months after Biden’s inauguration.
The upgraded ties entail deeper cooperation in a wide range of areas, such as science and technology, trade and investment, climate and energy, and people-to-people ties.
The two countries are committed to working together in areas of science and technology, semiconductors, education and training, and upskilling workforce development. “All of these things with the goal of ensuring that Vietnam has the workforce it needs to meet the challenges and opportunities of the 21st century,” Knapper said.
More than 70 countries and territories have recognized Vietnam’s market economy status. In July, the UK hinted that it will be the next to recognize that Vietnam’s industries are operating in a market economy and will not impose unfavorable rules should they be investigated under trade defense measures.