Vietnam's General Secretary and President Nguyen Phu Trong announced that the country is very close to finalizing trade negotiations with the United States. This comes as the two nations continue follow-up discussions on last year's trade agreement, moving closer to a final consensus after more than a year.
During an interview with Bloomberg TV on September 21, Trong, who is in New York for the United Nations General Assembly, stated that the trade negotiations with the U.S. are "very close to being finalized." He added that he is prepared to purchase more advanced products, such as aircraft, to reduce the trade surplus with the U.S.
Trong emphasized that one of the issues to discuss with U.S. leaders, particularly the President, is how to expedite negotiations for a mutual, balanced, and fair tariff agreement. He noted that Vietnam's exports align with U.S. demand and do not directly compete with American products. He expressed a desire to increase imports of U.S. products to support industrial production, although he mentioned some policy constraints from the U.S. side.
According to Vietnam's government gazette, Jamieson Grier, the U.S. Trade Representative, also indicated that there has been "significant progress" in their discussions, stating that they are "very close to a final agreement." He added that once the final agreement is signed and implemented, a mutual, fair, and balanced trade agreement would continuously open new opportunities and cooperation possibilities.
Last year, the U.S. trade deficit with Vietnam reached a record $178.2 billion, making Vietnam the third-largest goods trade deficit partner for the U.S., following China and Mexico.
In response, the Trump administration has demanded that Vietnam reduce its trade surplus with the U.S. and expand market access. The two countries reached a tariff agreement last July, where the U.S. reduced its reciprocal tariffs on Vietnam from 46% to 20%, while Vietnam agreed to nearly eliminate tariffs on U.S. products and expand market access for U.S. automobiles, medical devices, and pharmaceuticals. Additionally, the U.S. decided to impose a 40% tariff on transshipped goods to prevent Chinese products from being exported through Vietnam.
However, subsequent detailed discussions have been prolonged, and the U.S. Supreme Court invalidated the reciprocal tariffs in February, leaving the tariff negotiations in limbo.
Despite this, the U.S. continues to exert trade pressure on Vietnam using Section 301 of the Trade Act. In July, the U.S. Trade Representative imposed additional tariffs of 10% or 12.5% on 60 countries based on findings related to forced labor, with Vietnam facing a 12.5% rate. The U.S. is also conducting Section 301 investigations regarding Vietnam's intellectual property protection and enforcement issues, as well as structural overproduction in manufacturing.
Particularly, the U.S. views the issue of Chinese products being transshipped through Vietnam as a major trade concern. In this regard, Trong stated, "We do not accept transshipped goods," emphasizing that trade must be conducted genuinely. He added that products must be produced in Vietnam and meet international standards and requirements, which applies not only to the U.S. market but also to other international markets where Vietnam participates.
Furthermore, Trong requested Grier to adopt a comprehensive approach to various trade issues, including the ongoing Section 301 investigations.
Should the trade negotiations between the U.S. and Vietnam reach a final agreement, it is expected to reduce trade uncertainties for domestic companies operating in Vietnam. Currently, Vietnam hosts major South Korean companies, including Samsung Electronics, LG Electronics, SK, and Hyosung, with around 10,000 South Korean firms operating in the country. South Korea's foreign direct investment (FDI) in Vietnam has surpassed $95 billion, maintaining its position as the top investor.
* This article has been translated by AI.
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