US, Vietnam seal many deals to boost economic ties

A string of deals in energy, infrastructure, telecommunications, digital technology, and climate change response areas were signed on the occasion of Prime Minister Pham Minh Chinh’s working visit to the U.S. and the U.N. from May 11 to 17.

During a meeting in Washington, D.C. on Wednesday, U.S. time, PM Chinh and U.S. Secretary of Commerce Gina Raimondo witnessed the exchange of cooperation documents in fields that will help Vietnam achieve its net-zero commitments made at the 2021 United Nations Climate Change Conference (COP26).

These documents include an investment registration certificate for the Son My LNG Terminal project, to be invested by AES Group and Vietnam’s PVGas.

There is an agreement on environmental, social and governance cooperation, technical assistance cooperation and information exchange to realize Vietnam's zero emissions target through carbon markets, integrated financing, taxonomy and biodiversity, and regulatory frameworks.

Others include a deal on investment cooperation to improve operational efficiency of Nhon Trach 1 power plant; an agreement on investment cooperation in 5G networks; a cooperation agreement on supporting the development of a legal framework on environmental and social standards in investment and credit granting activities of Vietnamese credit institutions; and one on supporting the National Steering Committee in implementing the COP26 commitments on climate change and environment.

The two senior officials also witnessed the signing of a cooperation agreement in power generation and transmission, exchange of new technologies, training and service provision for gas power projects in the 2022-2027 period.

On the occasion, the World Bank’s investment arm IFC signed a deal with Vietnam’s HDBank to finance supply chains of small and medium-sized enterprises in agriculture, building materials, support industries, petroleum distribution and climate change.

The Vietnamese PM told Gina Raimondo that the two countries still have ample room for growth in trade. He expected the trade relations would continue to develop in a harmonious and sustainable manner, with more concentration on supply chains, digital transformation in commerce and investment, and promotion of science and technology.

The U.S.-Vietnam trade rocketed from $400 million in 1995 to $112 billion last year.

"Vietnam is prioritizing projects with advanced, clean technology and high added value, green transformation, digital transformation with spillover effects, and global production and supply chain connections," the premier said.

U.S. Commerce Secretary Raimondo noted she highly appreciated the vision and economic development plan of the Vietnamese Government, especially the transformation to a digital economy, a green economy, and diversified supply chains. She affirmed that the U.S. wants to strengthen cooperation with Vietnam in the process of implementing COP26 emission reduction commitments.

At the meeting with PM Chinh, leaders of Asia Group, Blackstone, GenX, and AES said that they are interested in energy conversion projects and want to invest more in this field in Vietnam.

The premier asked the investors to research and invest in wind power, solar power, and tidal power - energy sources with potential for development in Vietnam.