Vietnam PM urges US to lift tech ban, stresses '4 nos' policy

Vietnamese Prime Minister Pham Minh Chinh has called on the U.S. to lift technology restrictions on Vietnam as the two former foes deal with war consequences and strongly boost investment-trade ties.

Addressing the seventh U.S.-Vietnam Business Summit Wednesday, Chinh said Vietnam will apply U.S. technologies to address war legacies such as unexploded ordnances and orange agent.

“We will use technologies to improve our people’s material and spiritual life, and not against other countries as clearly expressed in our “four nos” defense policy, he said.

Vietnam’s “four nos” policy, as outlined in the 2019 Vietnam Defense White Paper comprise the following: no partaking in military alliances; no siding with one country against another; no foreign military bases on Vietnamese territory or use of Vietnam to counteract other countries; and no use of force or threat to use force in international relations.

He also called on the U.S. administration to recognize Vietnam as a market economy, calling it “a political decision rather than a technical one.”

Per an August 2 decision, the U.S. Department of Commerce has continued to classify Vietnam as a non-market economy country for purposes of calculating U.S. antidumping duties on imports from the country.

Vietnam's trade ministry said it "regrets that the U.S. Department of Commerce continues to designate Vietnam as a non-market economy, though the country's improvements were acknowledged."

Deputy Ministry of Foreign Affairs Do Hung Viet expressed his hope that American businesses would endorse Vietnam’s efforts to upgrade its market economy status.

Trade-investment ties thrive

PM Chinh highlighted the thriving economic, trade, and investment relations between the two countries over nearly three decades after normalization of relations, with significant contributions made by U.S. businesses.

Trade was the most notable success of bilateral economic relations, he said.

The U.S. is currently Vietnam's largest export market and second largest trading partner, only behind China. Vietnam has emerged as one of the U.S.’s 10 largest trading partners.

However, U.S. investment in Vietnam remains modest and below its potential, PM Chinh said.

According to data from the Vietnamese government, two-way merchandise trade turnover reached a record $110.8 billion in 2023 and rose further to $110.9 billion in the first 10 months of this year.

As of October 2024, the U.S. had invested in 1,400 projects with a total registered capital of nearly $12 billion in Vietnam, ranking 11th out of 148 countries and territories investing in the country.

Chinh expressed his gratitude to the U.S. for supporting Vietnam’s aspiration to be “strong, independent, self-reliant and prosperous.”

On this basis, the two countries have actively facilitated trade and investment relations, creating conditions for businesses to cooperate further. Some Vietnamese companies like VinFast, FPT and CMC have invested in the U.S., he noted.

Socialist market economy

Chinh emphasized that Vietnam was building a socialist-oriented market economy that adhered to supply-demand rules. However, as a developing country with a modest economic scale but high openness, its resilience lacked strength.

In addition, Vietnam has experienced devastating wars, so it needs a development roadmap that matches its conditions and the general global context, he said.

Chinh said that over nearly 40 years of Doi moi (renovation), Vietnam has gone from being a country under siege and embargo to one that has diplomatic relations with nearly 200 countries, including comprehensive strategic partnerships, strategic partnerships, and comprehensive partnerships with 32 countries. It has signed 17 free trade agreements with 65 leading economies in worldwide.

Globally, Vietnam was among the 34 largest economies and a top 20 trading economy, with import-export turnover this year estimated at nearly $800 billion.

Vietnam has attracted more than $400 billion in FDI so far, and is poised to garner $40 billion in commitments this year, while disbursing more than $25 billion.

The Vietnamese government will continue to prioritize growth, focusing on renewing traditional growth drivers (investment, export, consumption) and promoting new drivers like the digital economy, green economy, circular economy, and knowledge-based economy.

At the same time, it was according due importance to science and technology, innovation and emerging industries and fields like cloud computing, artificial intelligence and the Internet of Things, the PM said.

More U.S. investment

Chinh said he was scheduled to meet in the near future with large U.S. business delegations seeking to invest in Vietnam’s digital transformation and technological advancement.

To achieve strategic breakthroughs in three areas, namely, institutions, infrastructure and human resources, Vietnam will invest heavily in transport infrastructure, reduce input costs and logistics costs, create new development spaces and increase its competitiveness.

With major projects underway and in the pipeline, U.S. businesses can invest in international financial centers in Ho Chi Minh City and Danang, major seaports in Hai Phong, Danang and Ba Ria-Vung Tau, helping Vietnam emerge as an international aviation and maritime transport hub, he said.

U.S. Ambassador to Vietnam Marc Knapper said U.S. companies stood ready to work with Vietnam to advance its energy security transition goals as also take advantage of bold new steps such as the direct power purchase agreement mechanism.

“We are aiming to support Vietnam's goals to be a high-tech economy, to be a high-income economy, to be a digital economy, to be a green economy. These are goals, bold goals, but achievable ones.”

The U.S. government and private sector are focused on building resilient supply chains, fostering high-tech investment, particularly in semiconductors, AI, quantum, and other advanced industries with Vietnam, the diplomat said.

AmCham chairman Joseph Uddo said: “With last year’s relationship upgrade and with the change in government in the United States, this is a critical time and wonderful opportunity to work on upgrading the policy framework to attract new players and help current investors and businesses grow.”

AmCham executive director Adam Sitkoff commented: “We now are seeing a true sense of momentum in the U.S.-Vietnam economic relationship, although President-elect Trump has articulated the need for more balanced trading relationships.

“It is incumbent upon the business communities of both countries to capitalize on this momentum to unlock higher levels of two-way trade and investment, while working with both governments to break down the challenges and obstacles standing in the way.”