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Economy

Vietnam and US to Launch Trade Agreement Talks

Thursday 10 April 2025 - 07:34

By: Zahouani Ilham

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Vietnam has announced its intention to begin trade negotiations with the United States, following a series of tariff-related tensions. During the first quarter of the year, the US was Vietnam's top export destination. However, the recent imposition of a 46 percent tariff by President Donald Trump—part of a broader global trade initiative—put pressure on the Southeast Asian nation.

Although these tariffs were temporarily suspended on Wednesday, Vietnam’s Deputy Prime Minister Ho Duc Phoc emphasized the need for a bilateral trade agreement to foster stable and mutually beneficial economic relations. This initiative was confirmed through a statement published on the government’s official news portal.

Phoc, now designated by General Secretary To Lam to lead discussions with Washington, met with US Trade Representative Jamieson Greer to initiate the process. According to Vietnam’s government, both parties agreed to commence negotiations on a reciprocal trade pact, which would include tariff agreements. Technical teams from both nations have been tasked to start immediate discussions.

While in the US, Phoc held talks with lawmakers, industry representatives, and multiple organizations. His visit coincided with a major announcement from budget airline Vietjet, which signed a $300 million financing deal with AV AirFinance to expand its aircraft fleet. The agreement, witnessed by Phoc, is part of over $4 billion in aircraft financing arrangements involving key American partners.

AV AirFinance also revealed that Vietjet will begin receiving Boeing 737 MAX aircraft this year, part of a previously announced $24 billion deal from 2019.

In response to the new US tariffs, Vietnam had earlier requested a 45-day delay, warning that the tariffs could undermine its export-driven economic model. To address US concerns, Vietnam pledged to increase purchases of American goods, including defense and security products.

President Trump has justified the tariffs by citing Vietnam’s significant trade surplus with the US, which reached $123.5 billion last year. He also accused the country of helping other nations circumvent tariffs on Chinese goods. Vietnam, however, stressed in its latest statement that it has taken proactive steps to resolve these concerns with the US.