What Vietnamese businesses expect from Biden's visit

Eight fresh fruits from Vietnam are now allowed to be imported into the U.S., and Nguyen Dinh Tung, CEO of agricultural produce exporter Vina T&T, expects a ninth to be approved after Biden's visit.

"If passion fruit gets the green light, Vietnam's exports to the U.S. will surge. For Vina T&T, growth will be up to 60%."

Coming at the invitation of Party General Secretary Nguyen Phu Trong, Biden arrives in Hanoi Sunday for a two-day visit.

Vietnam and the U.S. have seen trade increase rapidly in the last decade. Last year it was worth a record US$124 billion, making the U.S. the first partner with whom Vietnam's trade has surpassed the $100-billion mark.

That represented a 3.5-fold jump from 10 years ago when the two countries established a comprehensive partnership.

The U.S. is also the biggest export market for Vietnam. In the first eight months of this year, its exports were worth $62.3 billion, and, despite global difficulties, bilateral trade is again forecast to exceed $100 billion this year, according to the Vietnam Trade Office in the U.S.

In the event, businesses see the U.S. as a major market.

Vina T&T has been exporting fruits for 15 years to the U.S., which accounts for 60% of its exports.

The U.S. is a difficult market due to its high standards, but in recent years Vietnamese fruits have increasingly become popular among American consumers and exports have been rising steadily, Tung said, adding that his company posted exports growth to the U.S. of 40% in the first half.

Last month the U.S. approved imports of husked coconut from Vietnam after a 1.5-year hiatus, and exports of the item rose by double digits in the last two weeks.

With a population of more than 300 million, the U.S. is a market full of opportunities for Vietnamese exporters, according to Ta Hoang Linh, head of the Europe and America markets under the Ministry of Industry and Trade.

Textiles are among the main exports to the U.S. and were worth $17.8 billion last year.

But the U.S. maintains high import tariffs on Vietnamese garment products, Pham Xuan Hong, chairman of the Ho Chi Minh City Association of Garments, Textiles, Embroidery, & Knitwear, said.

He hoped Biden's visit would bring down the tariffs and ease certain regulations related to sourcing of materials.

"We expect that textile exports will increase in the last quarter, and orders will be higher than the first three quarters combined."

Nguyen Chanh Phuong, deputy chairman of the HCMC Handicraft and Wood Industry Association, said U.S. timber is suitable for processing in Vietnam but its prices are higher than its European counterpart.

"If the U.S. can bring down timber prices, both countries will reap benefits."

Vietnam is also attracting growing interest from U.S. businesses, who invested $11.4 billion last year in 1,216 projects, the 11th highest by any country or territory.

Apple has moved 11 suppliers' factories to Vietnam, while chip giant Intel has invested $4 billion to expand its plant in HCMC.

Boeing, Google and Walmart have all been studying the business environment in Vietnam to expand their network of suppliers.

Adam Sitkoff, chief executive of the American Chamber of Commerce in Hanoi, said expansion by existing investors is the best advertisement for attracting new ones.

He expected Biden's visit to help close certain business deals and speed up delayed projects.