30 years of Vietnam-US trade: Tariffs and a new 'trial by fire' phase.

After three decades of cooperation, Vietnam-US trade is entering a new "trial by fire" phase, with stricter tariffs and regulations, although this also presents an opportunity for the Vietnamese economy to upgrade and enter the high-value supply chain.

Former Deputy Minister of Foreign Affairs Pham Quang Vinh speaks at the Vietnam-US Trade Forum 2025 on December 10-12 - Photo: NGHI VU

On December 10th, to commemorate the 30th anniversary of the normalization of relations between Vietnam and the United States and the 25th anniversary of the signing of the Bilateral Trade Agreement (BTA), the Department of Foreign Market Development ( Ministry of Industry and Trade ) collaborated with the American Chamber of Commerce in Vietnam (AmCham Vietnam) to organize the Vietnam-US Trade Forum 2025 with the theme "30 Years of Economic and Trade Cooperation - Overcoming Challenges, Entering a New Era".

Identifying challenges and opportunities

The event was held against the backdrop of Vietnam-US trade relations entering a new phase, as Washington's trade policies are undergoing significant changes and directly impacting many partners, including Vietnam.

Mr. Nguyen Hong Duong, Deputy Director of the Department of Foreign Market Development (Ministry of Industry and Trade), emphasized that bilateral trade currently faces many issues that need in-depth discussion, especially those related to reciprocal tariffs.

These are sensitive issues, requiring both businesses and investors from both sides to identify the challenges early and work together to find common solutions.

Concurring with this view, former Deputy Minister of Foreign Affairs Pham Quang Vinh, also former Vietnamese ambassador to the US, stated that Vietnam-US trade has the potential to continue to develop strongly in the future, given the intertwined interests between the two sides.

Mr. Vinh argues that tariffs represent a new perspective of the US on the world, a way for this superpower to "reset" the global game, with Vietnam being affected.

According to Mr. Vinh, tariffs are a driving force for Vietnam to reassess its economic position, its strengths in attracting foreign investment, its ability to participate in global supply chains, and its import and export strengths.

"About 70% of Vietnam's exports to the US come from the FDI sector. While we face the need to increase the localization rate, we cannot force foreign businesses to buy Vietnamese goods."

"Therefore, to increase the added value and localization in exported goods, Vietnam clearly needs to upgrade the quality of its economy. This is a big issue," Mr. Vinh analyzed.

Virginia Foote, Vice President of the American Chamber of Commerce in Vietnam (AmCham), shared this at the Vietnam-US Trade Forum 2025 on December 10-12. - Photo: Nghi Vu

Vietnam needs to continue to demonstrate its capabilities.

Commenting on Vietnam's export capabilities to the US, Virginia Foote, Vice President of the American Chamber of Commerce in Vietnam (AmCham), said that Vietnam is doing very well, with the US becoming a very important and successful export market for the country.

"When American companies come to Vietnam, their suppliers come too," Ms. Foote stated.

Besides the issue of tariffs, Ms. Foote also noted that Vietnamese businesses will need to pay close attention to rules of origin, as the US currently has concerns about Vietnamese goods not meeting these rules when exported.

In her recommendations for businesses, Ms. Foote noted that Vietnamese businesses need to thoroughly understand their supply chains, grasp them, and have documented evidence.

Next, Vietnamese businesses will need to work closely with buyers, as many large retailers are seeking new partnerships, and Vietnam is facing strong competition from Malaysia, Indonesia, and other countries.

According to Ms. Foote, these retailers are generally not inclined to change suppliers easily, but they will consider ensuring their supply chains are sustainable and long-term. "Vietnam has proven itself to be a long-term partner, and needs to maintain that position," the AmCham Vice President stated.

Proposal to eliminate reciprocal taxes on footwear.

In an online exchange, Matt Priest, President of the Footwear and Apparel Association (FDRA), informed that the FDRA had sent a recommendation to US President Donald Trump suggesting that he consider reducing or eliminating reciprocal tariffs on footwear, due to rising retail prices and consumer concerns.

According to Mr. Priest, Vietnam has gained market share from China in this industry over the years, but with the current equal tariffs, combined with regulations on regional value content requiring a sufficiently high percentage of domestically sourced materials in footwear, Vietnamese products will lose competitiveness.

The FDRA is proposing that Washington extend a longer and more flexible transition roadmap for the localization rate in the footwear industry. Mr. Priest also stated that the FDRA considers Vietnam a sustainable partner, open to dialogue, always ready to negotiate, and that the Vietnam-US trade relationship will endure for a long time.

"Over 50% of all athletic shoes sold in the U.S. are manufactured in Vietnam. Hundreds of millions of Americans are perfectly comfortable wearing athletic shoes 'Made in Vietnam'. This will remain true for many years to come," Priest stated.

NGHI VU

Source: https://tuoitre.vn/30-nam-thuong-mai-viet-my-thue-quan-va-giai-doan-thu-lua-moi-20251210184130537.htm