Vietnam's Benefits in Developing Trade with the United States

The common language spoken by the American people is English. They also have large communities speaking Spanish, French and many other languages (depending on the origin of immigration). The religion of the American people is also very diverse, Protestantism accounts for about 56%; Roman Catholicism 28%; Judaism 2%; Other religions 4%; the number of people who do not follow any religion is 10%.

In terms of history, the United States separated from the British colony in 1776 and was recognized as an independent country after Britain and the United States signed the Treaty of Paris in 1783. When it was first established, the United States had only 13 states. Currently, the United States has 50 states and 5 administrative districts including the capital Washington DC, Samoa, Guam, Virgin Islands and Puerto Rico. Therefore, the current US flag has 50 stars representing the 50 states and 13 white and red stripes symbolizing the 13 British colonies that declared independence and became the first 13 states of this country.

After World War II, the United States became the strongest empire, implementing a global strategy to control capitalist countries, prevent socialism and national liberation movements. The United States directly intervened in two local wars in Korea (1950-1953) and Vietnam (1964-1975). The failure in the war in Vietnam pushed the United States into a period of relative weakness while Western Europe and Japan developed. The United States focused on consolidating its strength while continuing to promote the arms race with the Soviet Union. After the collapse of the Soviet Union (1991), the Cold War and the bipolar world order ended, and the United States became the only superpower with comprehensive economic and military strength. The United States is in the process of adjusting its strategy and seeking to build a new world order suitable to the position and power of the United States.

* Political system

Politically, the United States is a Federal Republic, following the separation of powers regime. According to the US Constitution, legislative power belongs to Congress, executive power belongs to the President and judicial power belongs to the Supreme Court. US federal state agencies operate on the principle of "control"

checks and balances‟, in which the US Constitution provides specific powers for one agency to cross-check the other two agencies. The US Constitution clearly defines the powers belonging to the federal government and the state governments, in which the state governments have many great powers.

The United States has a multi-party system. The Democratic Party (founded in 1828) and the Republican Party (founded in 1854) take turns in power. Since World War II, there have been 7 Democratic and 7 Republican presidential terms.

* About Economy

The United States is the world's leading industrialized country. The United States has a mixed economy, with corporations and private companies playing an important role while the government tends to limit its impact on the economy. Gross domestic product (GDP) in 2006 was $13.24 trillion, accounting for more than 30% of the world's GDP. GDP per capita is $44,153. In the economic structure, services account for about 80%, industry 18%, and agriculture 2%.

The US's import and export turnover accounts for about 25% of GDP, making it the largest importer and exporter in the world. In 2006, the US exported $1,446 billion worth of goods and imported $2,204 billion worth of goods. The US's largest trading partners are Canada, Mexico, Japan, ASEAN, China, the UK, Germany, France, and the Netherlands. The US has had a high trade deficit for nearly two decades, especially increasing continuously at a record level of $763 billion (5.7%) in 2006, exceeding the alarming level (5.5% of GDP).

Table 1.2: Import and export of goods and services

(Unit: million USD)

2001	2002	2003	2004	2005
Total exports	1,004.9	974.7	1,016.1	1,151.9	1,275.2
Goods	718.7	682.4	713.4	807.4	894.6
Service	286.2	292.3	302.7	344.4	380.6
Total imports	1,367.7	1,395.8	1,511.0	1,763.2	1,992.0
Goods	1,145.9	1,164.7	1,260.7	1,472.9	1,677.4
Service	221.8	231.1	250.3	290.3	314.6
Total balance	-362.8	-421.1	-494.9	-611.3	-716.7
Goods	-427.2	-482.3	-547.3	-665.5	-782.7
Service	64.4	61.2	52.4	54.1	66.0

Maybe you are interested!

Source: Ho Chi Minh City Institute of Economic Research

Export

In 2005, U.S. merchandise exports totaled approximately $894.6 billion, an increase of $87.2 billion (10.8%) over 2004. The three groups with the highest increases were aircraft and aerospace equipment; petroleum products; and motor vehicles. These three groups alone increased by $18.3 billion in 2005, accounting for 24% of the total increase in export value. The two groups with the largest decreases in export value were semiconductors, down $1.8 billion (14%), and grains, down $1.6 billion (13%).

Table 1.3: Export turnover of goods

(Unit: million USD)

2002	2003	2004	2005
Total turnover	682.4	713.4	807.4	894.6
Means of transport	144,655	142,948	155,902	180,517
Electronic products	140,428	140,838	149,450	155,408
Chemicals and related products mandarin	91,702	102,330	121,383	132,734
Machines	63,262	63,462	76,744	82,087
Agriculture, fisheries and food processing	58,345	64,706	66,908	68,698
Minerals and metals	39,924	42,980	50,588	62,911
Forest products	22,825	23,566	25,637	27,809
Energy related products quantity	14,431	16,639	21,783	29,892
Textile products	17,298	17,033	17,633	17,864
Other manufactured products	15,004	14,859	16,923	19,111
Shoes	520	495	450	507

Source: Ho Chi Minh City Institute of Economic Research

Import

In 2005, the import turnover of goods reached 1,677.4 billion, an increase of 204.5 billion USD (14%) compared to 2004. Many groups of goods had an increase of over 4 billion, of which the energy product group had the highest increase of 75.1 billion, accounting for 37% of the total import increase, mainly due to the increase in world oil prices.

Table 1.4: Import turnover of goods

(Unit: million USD)

Product group

2002	2003	2004	2005
Total turnover	1,164.7	1,260.7	1,472.9	1,677.4
Electronic products	229,245	238,833	280,146	305,268
Means of transport	227,147	232,212	253,775	271,464
Energy related products	109,800	147,183	195,553	273,197
Chemicals and related products	106,924	123,922	141,683	163,050
Minerals and metals	85,616	89,204	120,897	137,367
Machines	85,181	93,138	108,564	123,258
Textile products	81,585	87,241	94,045	100,485
Other manufactured products	72,129	74,765	83,226	91,306
Agricultural and aquatic products (including processed products)	55,591	60,899	67,012	73,050
Forest products	37,048	38,769	47,591	50,003
Shoes	15,379	15,560	16,498	17,834

Source: Ho Chi Minh City Institute of Economic Research

The commodity groups with the largest decrease in turnover were semiconductors and integrated circuits (down 831 million USD), and cameras and equipment (down 503 million USD).

After a period of recession (March 2001-January 2002), the US economy quickly grew again. The Bush administration used the following main measures to deal with the economic recession: increasing government spending, cutting lending interest rates and reducing taxes. In addition, because the US economy is in a transitional period, labor productivity has increased sharply due to the application of scientific and technological advances, especially information technology, the economic crisis cycle has shortened, helping the US economy to escape the crisis sooner than previous economic cycles. In 2001, the US GDP increased by 0.8%, in 2002 it increased by 1.9%, in 2003 it increased by 3%, in 2004 it was

4.4%, 3.5% in 2005 and 3.4% in 2006. Currently, the US is a debtor country.

the world's largest with total debt of nearly $9 trillion in 2006, accounting for 64% of GDP.

2.2. The position of the United States in the international arena

An economist's adage is: “When America sneezes, the whole world catches a cold.”

According to the nonprofit Council on Competitiveness, the United States directly contributed to one-third of global economic growth between 1995 and 2005. Between 1983 and 2004, U.S. imports rose sharply and accounted for nearly 20 percent of the increase in world exports.

“Developing countries accounted for an increasing share of U.S. exports, from 32.8 percent in 1985 to 47.0 percent in 2006,” the Congressional Research Service (CRS) report stated. “Developing countries also accounted for 34.5 percent of U.S. imports in 1985 and 54.7 percent in 2006.”

Like a resilient four-wheeled vehicle overcoming rugged terrain, the American economy has weathered the first years of the 21st century with relative ease, despite facing many major setbacks: the stock market crash, terrorist attacks, wars in Iraq and Afghanistan, financial scandals, widespread destruction from hurricanes and floods, rising energy prices, and a dramatic real estate slump.

After a mild recession from March to November 2001, the US economy began to grow at an average rate of 2.9% from 2002 to 2006. Meanwhile, price inflation, unemployment and interest rates remained relatively low.

By many measures, the United States has maintained its position as the most competitive, productive, and influential economy in the world. However, the U.S. economy is increasingly exposed to the effects of other dynamic economies. Today, the United States continues to face both internal and external challenges.

A number of numbers to consider

Regardless, the US economy consistently ranks at or near the top of a series of international rankings:

Ranked first in economic output, also known as gross domestic product (GDP), at $13.13 trillion in 2006. With less than 5% of the world's population, about 302 million people, the United States accounts for 20 to 30% of the world's total GDP. The GDP of one state alone - California

- reached $1.5 trillion in 2006, exceeding the GDP of all but eight countries that year.

Leading in total import turnover, about 2.2 trillion USD, 3 times the import turnover of the second-ranked country, Germany.

Second in merchandise exports - $1 trillion in 2006 - behind Germany, although China is expected to overtake the US in 2007. First in services exports - $422 billion in 2006.

Ranked number one in trade deficit, $785.5 billion in 2006, many times larger than any other country.

Ranked second in sea container transport in 2006, behind only China.

Ranked first in foreign debt, estimated at more than $10 trillion in mid-2006.

It is the top destination for foreign direct investment - in business and real estate - reaching about 177.3 billion dollars in 2006. It is the top destination for foreign direct investment in

The world's 100 largest multinational corporations, including corporations from developing countries.

Ranked fifth in reserve assets in 2005 at $188.3 billion, accounting for 4% of the world market share, behind Japan and China (each with 18%), Taiwan and South Korea, and just ahead of the Russian Federation. Ranked 15th in foreign exchange and gold reserves, reaching about $69 billion in mid-2006.

Top source of remittances in Latin America and the Caribbean in 2006, from migrants leaving these regions in search of work abroad.

Ranked first in oil consumption, about 20.6 million barrels per day in 2006, and ranked first in crude oil imports with over 10 million barrels per day.

Ranked 3rd for ease of doing business in 2007, after Singapore and New Zealand. Ranked 20th out of 163, tied with Belgium and Chile, in the 2006 Transparency International index measuring corruption levels (economies with lower rankings are considered less corrupt).

(According to the publication of the International Information Program, US Department of State, July 2007)

3. Vietnam's benefits in developing trade with the United States

Developing economic and trade relations with countries around the world in general and the United States in particular is an objective requirement of our country. Before the 1980s, Vietnam's trade operated under a centrally planned mechanism. The State had a monopoly on foreign trade. Vietnam's trade relations were mainly

Comment