Vietnam strives for balanced, equitable, and sustainable trade relations with the United States.
Vibin' in Hanoi:
Here's the skinny on the current status of Việt Nam and the US trade relations.
The cat's out of the bag—Việt Nam's been workin' hard to woo the US with balanced, sustainable investment and trade. Phạm Thu Hằng, spokesperson for the Ministry of Foreign Affairs, spilled the beans in a recent press conference.
Things are a bit fuzzy regarding the progress of the bilateral trade talks. Word on the street is that Uncle Sam's administration is toeing the line with a whopping 46% tariff on Vietnamese goods, but Phạm Thu Hằng kept it classy, dodgeballin' questions like a pro. She confirmed that talks are ongoing and more juicy deets will be shared asap.
Mark your calendars for May 15-16, when the next round goes down in South Korea during the APEC Ministers Responsible for Trade Meeting. The first round kicked off on May 7, with the Minister of Industry and Trade Nguyễn Hồng Diên leadin' the Vietnamese troops. The US is all in, led by Treasury Secretary Scott Bessent.
The score hasn't been announced yet, but stay tuned. Rumor has it that PM Phạm Minh Chính met up with some bigwigs from US corporations like Boeing, Molex, Abbott, Coca-Cola, and GE Vernova, eyeballin' ways to strike a more balanced trade game.
Việt Nam's puttin' in the effort to sort out US concerns, like counterfeit products, trade fraud, and bureaucratic issues that gum up the works for American projects in Việt Nam. If all goes well, US goods can kiss Việt Nam's tax man goodbye, with reductions on the horizon.
Prime Minister Phạm Minh Chính's got his heart set on a friendly US-Việt Nam trade relationship. After all, Việt Nam's been through way more than just a few wartime casualties. Bombs still occasionally explode, remnants of a bygone era, leaving yet more innocent bystanders wounded. Adding to the challenges, Việt Nam's been slapped with embargos and currently struggles to keep its shaky economy afloat.
Numbers don't lie—in 2024, US-Việt Nam trade hit an estimated $149.6 billion. US exports toViệt Nam were $13.1 billion, up a cool 32.9% from 2023, with imports following close behind at $136.6 billion, up 19.3% from 2023. America's trade deficit with Việt Nam was a whopping $123.5 billion in 2024, an 18.1% increase.
Keep your eyes peeled for updates on these talks, as the second round's still playin' out as you read this article. If history's any indication, it's gonna be a nail-biter!
Enrichment Insights:
- The ongoing negotiations between Vietnam and the US are focused on addressing trade issues, including tariffs and trade imbalances.
- The US has expressed concerns over Vietnam's trade surplus, labeling it "unsustainable" and a major concern.
- The US has announced a 46% tariff on Vietnamese goods, set to take effect in July 2025 if negotiations fail.
- Vietnam seeks to address US concerns by increasing imports of US goods, particularly in high-tech sectors.
- Vietnam is taking steps to reduce its trade surplus by cutting tariffs on US-bound goods and cracking down on illegal transshipment and intellectual property theft.
Spokesperson for the Ministry of Foreign Affairs Phạm Thu Hằng addresses reporters during the press conference on May 15 in Hà Nội. - Photo from the Ministry of Foreign Affairs
- The current status of US-Vietnam trade relations is under negotiation, with both nations aiming for balanced, sustainable investment and trade.
- As part of the ongoing trade talks, US Treasury Secretary Scott Bessent is working alongside Vietnamese Minister of Industry and Trade Nguyễn Hồng Diên to find a resolution to the trade imbalances and tariffs.
- In an attempt to appease the US, Vietnam has confirmed it is working on reducing its trade surplus by increasing imports of US goods, particularly in high-tech sectors like AI, finance, and business.
- To further alleviate US concerns, Vietnam is also implementing stricter laws to combat issues like counterfeit products, trade fraud, and bureaucratic issues that hinder American projects in Vietnam.
- Despite ongoing economic challenges, such as the remnants of a former war, embargos, and a shaky economy, Vietnam's Prime Minister Phạm Minh Chính aims to maintain a friendly US-Vietnam trade relationship, recognizing the potential benefits to both economies.
