Vietnam and U.S. embark on second round of trade negotiations

Published 20/05/2025, 08:08
Vietnam and U.S. embark on second round of trade negotiations

Investing.com -- The United States and Vietnam have commenced the second round of their trade discussions in Washington, as announced by the Vietnamese government on Tuesday.

The Southeast Asian nation is working towards a trade agreement that would help it evade a potential 46% tariff, a move that could destabilize its export-oriented growth model.

The trade ministry revealed that the formal bilateral trade negotiations, which started on Monday, are set to continue until May 22. This follows the initial round of talks that took place earlier this month.

In the discussions, both nations focused on the comprehensive strategy to address core issues of mutual concern and expedite the negotiation process, according to the ministry. The ministry also stated that current policies are being reviewed as a foundation for moving forward.

Vietnam’s delegation, led by Trade Minister Nguyen Hong Dien, includes representatives from various sectors such as technology, agriculture, and construction, in addition to officials from the finance ministry and the central bank.

Dien had a meeting with his American counterpart, Jamieson Greer, in South Korea last week, in the aftermath of an APEC meeting.

The U.S. has postponed the enforcement of the 46% tariff on Vietnam until July, replacing it with a 10% rate for now. If imposed, this tariff could hamper Vietnam’s growth, considering its significant dependency on exports to the U.S., its largest market.

Vietnam, a crucial regional manufacturing hub for many Western firms, reported a trade surplus of more than $123 billion with the U.S. in 2024. To shrink this surplus, Hanoi has taken multiple steps, such as limiting shipments of Chinese goods to the U.S. through its territory and increasing its purchases of American goods.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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