Did You Know
Did You Know
US President Donald Trump discussed trade with Vietnamese Prime Minister Nguyen Xuan Phuc during a White House visit on Wednesday (May 31) and welcomed the signing of business deals worth billions of dollars and the jobs they would bring.
General Electric Co said earlier it had signed deals with Vietnam worth about US$5.58 billion (S$7.72 billion) for power generation, aircraft engines and services, its largest ever single combined sale with the country.
“They just made a very large order in the United States - and we appreciate that - for many billions of dollars, which means jobs for the United States and great, great equipment for Vietnam,” Mr Trump told reporters at the White House.
Mr Phuc said on Tuesday he would sign deals for US goods and services worth US$15 billion to US$17 billion during his Washington visit, mainly for high-technology products and for services.
Communist Vietnam has gone from being a bitter adversary of the United States during the Cold War to an important partner in the Asia-Pacific, where both countries share concerns about China’s rising power.
Mr Phuc told Mr Trump the relationship had undergone “significant upheavals in history,” but that the two countries were now “comprehensive partners.”
However, while Hanoi and Washington have stepped up security cooperation in recent years, trade has become a potential irritant, with a deficit widening steadily in Vietnam’s favour, reaching US$32 billion last year, compared with US$7 billion a decade earlier.
Mr Trump, who has had strong words for countries with large trade surpluses with the United States, said he would be discussing trade with Mr Phuc, as well as North Korea.
Washington has been seeking support for efforts to pressure North Korea to drop its nuclear and missile programs, which have become an increasing threat to the United States. Hanoi has said it shares concerns about North Korea.
Analysts said that while the Trump administration welcomed new business deals with Vietnam, it wants to see moves on trade.
Murray Hiebert, a Southeast Asia expert at the Center for Strategic and International Studies in Washington said the view was that deals were “nice, but not enough.”
“They want Vietnam to bring some ideas about how to tackle the surplus on an ongoing basis,” he said.
On Tuesday, US Trade Representative Robert Lighthizer expressed concern about the rapid growth of the deficit with Vietnam. He said it was a new challenge for the two countries and he was looking to Mr Phuc to help address it.
The deficit with Vietnam - Washington’s sixth largest - reflects growing imports of Vietnamese semiconductors and other electronics products in addition to more traditional sectors such as footwear, apparel and furniture.
Vietnamese Trade Minister Tran Tuan Anh presented Lighthizer on Tuesday with suggestions to address some U.S. concerns, such as advertising on US social media, electronic payment services and imports of information security and farm products, Vietnam’s trade ministry said.
Vietnam also urged the United States to remove an inspection program for catfish, speed import licenses for its fruit and make fair decisions on anti-dumping and anti-subsidy measures on Vietnamese products, the ministry said.
Vietnam was disappointed when Mr Trump ditched the 12-nation Trans-Pacific Partnership (TPP) trade pact, of which Hanoi was expected to be one of the main beneficiaries, and focused U.S. trade policy on reducing deficits.
Mr Phuc’s meeting with Mr Trump makes him the first South-east Asian leader to visit the White House under the new administration.
It reflected calls, letters, diplomatic contacts and lower-level visits that started long before Mr Trump took office in Washington, where Vietnam retains a lobbyist at $30,000 a month.