Simon Lewis and David Brunnstrom
WASHINGTON (Reuters) – The United States welcomed Vietnam’s planning and investment minister on Tuesday for talks on strengthening economic cooperation and said ties were stronger than ever, days after Hanoi upset Washington by hosting Russian President Vladimir Putin.
The State Department said this week’s dialogue will cover economic security, semiconductors, the investment climate, the digital economy, cyberspace, energy and critical minerals. Last year, Washington upgraded US-Vietnam relations to a “comprehensive strategic partnership.”
Russian President Vladimir Putin’s visit to Vietnam last week drew sharp criticism from the United States. Washington subsequently said it would remain focused on deepening ties with Hanoi as the US works to counter rivalry with China.
The United States must decide by July 26 to upgrade Vietnam to market economy status, which would reduce punitive anti-dumping duties imposed on Vietnamese imports given its current status as a non-market economy characterized by strong state influence.
“The relationship between Vietnam and the United States, we believe, is as strong as it has ever been,” said US Undersecretary for Economic Growth, Energy and Environment Jose Fernandez.
He opened the session by saying that trade between the US and Vietnam is now valued at $124 billion, making Vietnam the US’s ninth-largest goods trading partner.
Addressing Vietnam’s Minister of Planning and Investment Nguyen Chi Dung, Fernandez said American businesses were “very excited” about Vietnam, but added:
“We have to remember that while investors are bullish on Vietnam, we want to make sure they have the regulatory and decision-making environment… they need to continue their expansion in your country.”
In January, Fernandez said in Vietnam that 15 U.S. companies, including semiconductor firms, had expressed interest in investing $8 billion in Vietnam on clean energy infrastructure, depending on the country’s progress on renewable energy regulations.
Vietnam wants to attract chipmakers and boost its renewable energy sector, but has struggled to pass rules to allow it to expand its solar and onshore wind power and develop offshore wind farms.
The United States on Monday upgraded Vietnam’s rating on a human trafficking report, citing concerns that Hanoi had failed to open investigations into government officials involved in human trafficking crimes.
Hanoi warned that maintaining its status as a non-market economy would be very harmful to bilateral ties.
U.S. steel producers, Gulf Coast shrimp producers and honey farmers oppose the rating increase, but it is supported by U.S. retailers and some other business groups.