VIETNAM, February 4 -  

HÀ NỘI — US Ambassador to Việt Nam Marc Knapper affirmed that the lifting of the trade embargo by US President Bill Clinton 30 years ago paved the way for terrific advances in bilateral trade and economic relations between Việt Nam and the US.

He made the statement on the occasion of the 30th anniversary of the US lifting the embargo on Việt Nam (1994-2024). The event was considered to mark a new chapter in the diplomatic history of the two countries.

On February 3, 1994, US President Bill Clinton declared the lifting of the trade embargo against Việt Nam, removing the final barrier towards normalising relations between the two countries.

After lifting the embargo, the US Department of Commerce also moved Việt Nam from Group Z, which means a restricted trading group, to Group Y, a less restricted trading group.

On June 26, 1994, the US and Việt Nam agreed to exchange liaison offices to mark the establishment of official diplomatic relations between the two countries. And on July 11, 1995, US President Bill Clinton announced the "normalisation of relations" with Việt Nam.

On the morning of July 12, 1995, Prime Minister Võ Văn Kiệt also read a statement establishing diplomatic relations with the US.

Trade is among the key factors mentioned frequently after the event. On October 17, 2001, US President George W. Bush approved the Việt Nam-US Trade Agreement, opening the rapid development of trade relations between the two countries.

US Ambassador Marc Knapper stated that the numbers are clear evidence. Since the lifting of the trade embargo in 1994 and the normalisation of relations in 1995, up to 2022, the trade turnover between the US and Việt Nam has reached US$139 billion, a 300-fold increase compared to 1995.

Việt Nam has become the eighth largest trading partner of the US globally and the largest trading partner of the US in ASEAN. Meanwhile, the US is the second-largest trading partner and the largest export market for Việt Nam. In particular, the US believes in the importance of Việt Nam in global supply chains, he said.

The event of the US lifting the embargo on Việt Nam and then normalising relations first created opportunities for Việt Nam to connect with the US as well as other countries worldwide.

In addition, this was also a prerequisite for Việt Nam to make other important foreign achievements, such as officially joining the Association of Southeast Asian Nations (ASEAN) in 1995 and joining the Asia-Pacific Economic Cooperation (APEC) forum in 1998.

‘A smart decision’

Many experts emphasised the significance of the lifting of the trade embargo, affirming that the event is a driving force for the trade, economic, and investment cooperation between the two nations.

Dr Cấn Văn Lực, a member of the National Fiscal and Monetary Policy Advisory Council and a member of Vietnam National Committee for Pacific Economic Cooperation (VNCPEC), said the US’ decision to lift the trade embargo on Việt Nam was the right decision at the right time.

"I think it was a smart decision by the US. After the trade embargo was lifted, banks and businesses simultaneously entered Việt Nam. It seems like all of them had been eagerly waiting for this moment for a long time," he said.

Bùi Quang Minh, CEO of the multi-industry service ecosystem Beta Group, shared that when the embargo was lifted, he was only 11 years old, living in a rural area in the northern province of Vĩnh Phúc.

Minh had the opportunity to pursue a master's degree at the top-ranking Harvard University in the US. He said he felt grateful to live in a period when the Việt Nam-US partnership has brought many values to his generation.

Minh said his generation witnessed the increasingly close Việt Nam-US relationship, yielding significant achievements in various fields.

“I believe not only has Việt Nam learned many values from the US, but the US has also gained many values from Việt Nam, including innovation and price optimisation, which benefit the citizens of both countries,” he stressed.

VN-US prospective

US Ambassador Marc Knapper mentioned that during US President Joe Biden's State visit to Việt Nam last year, he committed to collaborating with and assisting Việt Nam in developing the semiconductor industry and other high-tech sectors, as well as working with Việt Nam to build a skilled workforce for the 21st century.

"So, we are very excited about the great work ahead of us in the future,” he said.

The US Ambassador also stated that the US welcomes all the significant economic reforms based on market mechanisms that Việt Nam has implemented, as well as Việt Nam's commitments. The US, for its part, is committed to extensive collaboration and support for Việt Nam as it continues to transition to a market economy, he said.

Regarding the recognition of Việt Nam as a market economy, the US Ambassador stated that the US Department of Commerce is currently undergoing this process.

The process began last October, including a public consultation period with a duration of 270 days. The US government is committed to conducting a fair and transparent process in line with international rules, he stressed.

Speaking about the prospects for cooperation between the two countries, Dr Lực said, in the context of Việt Nam and the US elevating their relationship to a Comprehensive Strategic Partnership last year, more specific action plans are needed to turn cooperation initiatives into reality, bringing benefits to businesses and citizens of both countries.

He also mentioned some potential areas, including startup investment, renewable energy, education, healthcare services and digital transformation.

"There should be a detailed plan for each different sector, and also a common focal point to monitor the implementation process and provide information," he added.

“I do hope that in the next five or ten years, Việt Nam and the US will have a free trade agreement,” he said.

Hà Thu Thanh, chairwoman and one of the founders of Deloitte Vietnam, who witnessed the discussions leading to the lifting of the trade embargo, noted that Việt Nam needs to improve its infrastructure, business environment and corporate ecosystem to truly attract investment.

Thanh cited that there are commitments worth billions of dollars invested in Việt Nam, but to truly apply this capital, Việt Nam needs to improve governance, build transparency and trust, and improve the market, she said.  VNS