US and Vietnam launch $3.25 million initiative to facilitate digital trade

The activity comes as part of the new US-Vietnam Comprehensive Strategic Partnership that was announced during President Joe Biden’s visit to Vietnam last month.

“During his recent visit, President Biden emphasised the United States’ commitment to supporting Vietnam as it competes in the global digital economy,” said USAID's Vietnam Mission director Aler Grubbs.

“We are pleased to sign the MoU with the MoIT. This new digital trade activity led by USAID and the MoIT is the first to be launched under our two countries’ newly upgraded partnership, and it will go a long way towards unleashing the potential of digital trade as a key driver of the country’s continued growth,” Grubbs added.

USAID’s three-year initiative, called Vietnam Digital Trade, will support the MoIT’s implementation of policy frameworks that facilitate digital trade, in consultation with the private sector. Regulations that are responsive to private sector needs will remove trade bottlenecks and increase regulatory transparency, helping to shape an e-commerce sector where enterprises of all sizes can benefit.

In addition, the activity encourages small- and medium-sized enterprise participation in digital trade by introducing new business models and other best practices, such as traceability of goods, as well as facilitating cross-border connections between companies via the MoIT’s digital trade promotion platform, DECOBIZ.

The project supports business associations such as the Vietnam Chamber of Commerce and Industry and Vietnam E-commerce Association to promote digital trade across the country. The project works through the MoIT and business associations to target female-owned enterprises and minority communities, supporting inclusive economic growth.

USAID’s Vietnam Digital Trade activity advances the US Indo-Pacific Economic Framework for Prosperity, under which Vietnam and the US partner to harness innovation and pursue high standards in the digital economy to drive continued growth.

This activity builds on the United States’ successful partnership with Vietnam over the past two decades, facilitating increased trade and the creation of a business enabling environment.

Vietnamese Minister of Information and Communications Nguyen Manh Hung and the UK’s Parliamentary Under Secretary of State at the Department for Digital, Culture, Media and Sport Chris Philp signed a Letter of Intent on cooperation in digital economy and digital transformation on November 1 (London time).

Despite woes from the COVID-19 pandemic since 2020, digital transformation is accelerating the digital economy in Vietnam.

Minister of Information and Communications Nguyen Manh Hung on February 13 met with US Trade Representative Katherine Tai and US Ambassador to Vietnam Marc E. Knapper to discuss boosting bilateral ties in digital economy and digital trade.