HCMC – Vietnam and the United States agreed on October 26 to a framework for an agreement on reciprocal, fair and balanced trade, the Vietnamese Ministry of Industry and Trade announced in a statement on its website (moit.gov.vn).
The statement said Vietnam and the U.S. had reached a consensus on establishing the framework for an agreement on reciprocal, fair and balanced trade to strengthen bilateral economic relations, which will enhance market access for both countries’ exporters.
The agreement will build upon the longstanding economic relationship, including the Vietnam-U.S. Bilateral Trade Agreement which was signed in 2000 and came into force a year later.
Key terms of the agreement on reciprocal, fair, and balanced trade between Vietnam and the U.S. will include:
- Vietnam will provide preferential market access for substantially all U.S. industrial and agricultural exports to the Vietnamese market.
- The U.S. will maintain the 20% reciprocal tariff, as set forth in Executive Order 14257 of April 2, 2025, as amended, on originating goods of Vietnam, and will also identify products from the list set out in Annex III to Executive Order 14346 of September 5, 2025, potential tariff adjustments for aligned partners, to receive a zero percent reciprocal tariff rate.
- The two countries will work constructively in an effort to address both countries’ interests in non-tariff barriers that affect bilateral trade in priority areas.
- Vietnam has agreed to address many such barriers including, for example, by accepting vehicles built to U.S. motor vehicle safety and emissions standards; addressing import licenses for U.S. medical devices; streamlining regulatory requirements and approvals for U.S. pharmaceutical products; fully implementing Vietnam’s obligations under certain international intellectual property treaties to which it is a Party; and addressing U.S. concerns with conformity assessment procedures.
- Vietnam and the U.S. have committed to address and prevent barriers to U.S. agricultural products in the Vietnamese market, including with regard to U.S. regulatory oversight and acceptance of currently agreed certificates issued by U.S. regulatory authorities.
- Vietnam and the U.S. will finalize commitments on digital trade, and services and investment.
- Vietnam and the U.S. will engage to address intellectual property, labor, environment, customs and trade facilitation, good regulatory practices, and any distortionary behaviors of state-owned enterprises.
- Vietnam and the U.S. are committed to strengthening cooperation towards our shared goals to enhance supply chain resilience, including addressing duty evasion and cooperating on export controls.
- In addition, Vietnam and the U.S. take note of recent commercial deals between U.S. and Vietnamese companies in the areas of agriculture, aerospace, and energy.
- Vietnam Airlines has agreed to purchase 50 aircraft from Boeing which is worth over US$8 billion.
- Vietnamese companies have signed twenty memorandums of understanding with U.S. companies to purchase U.S. agricultural commodities, with a total estimated value of over US$2.9 billion.
In the coming weeks, the two countries will work to finalize the agreement on reciprocal, fair, and balanced trade, prepare the agreement for signature, and undertake domestic formalities in advance of the agreement entering into force.
