New Reciprocal Tax Agreement: Which Items Have a Chance to Enjoy 0% Tax?

Many Vietnamese export associations and industries with strengths are expecting to have the opportunity to reduce taxes to 0% after Vietnam and the US agreed to issue a Joint Statement on the framework of a reciprocal, fair and balanced trade agreement.

With the majority of Vietnamese textile and garment products exported to the US being American brands produced in Vietnam, the textile and garment industry expects reciprocal taxes to be reduced under the new agreement between Vietnam and the US - Photo: Quang Dinh

According to the content of the Joint Statement issued by the Ministry of Industry and Trade after Vietnam reached an agreement with the US on the framework of the reciprocal, fair and balanced trade agreement at the 2025 ASEAN Summit taking place in Malaysia, many positive information in the joint statement opens up many expectations for Vietnamese export goods.

Continue negotiations

The notable point in the Joint Statement is the identification of products in the list stated in Appendix 3 of Executive Order No. 14346 dated September 5, 2025. That is: "Adjusting potential taxes for partners with similar orientations" - to enjoy a 0% reciprocal tax rate.

Thus, this content will be deployed to be specified in the Reciprocal, Fair and Balanced Trade Agreement, along with the current policy that the US will maintain the 20% reciprocal tax rate as stipulated in Executive Order No. 14257 dated May 2 for goods originating from Vietnam that was issued previously.

According to Tuoi Tre's source, with the Joint Statement being released, Vietnam will continue to negotiate with the US on the items expected to enjoy 0% tax. These items will be in the list, Appendix 3, but the specific items will depend on the two sides negotiating the next steps.

It is worth noting that not all items in this list will enjoy a 0% tax rate, but only some items.

In particular, the priority is to reduce tax to 0% for products that Vietnam has advantages in, that the US does not produce or does not need to bring back to the country. For products that Vietnam has advantages in such as textiles, footwear, and even increase imports and use many raw materials from the US such as cotton for the textile industry.

On the sidelines of the ongoing 13th ASEAN - US Summit, Minister Nguyen Hong Dien met with US Trade Representative (USTR) Jamieson Greer, discussing the agreement to speed up the progress to conclude negotiations, aiming to complete a reciprocal, fair and balanced trade agreement.

Working with the US Under Secretary of State for Economic, Environment and Energy Jacob Helberg, Mr. Dien also emphasized the spirit of unity towards completing and signing a reciprocal, fair and balanced trade agreement, as well as discussing economic and trade cooperation between Vietnam and the US, and areas with potential for promotion between the two countries.

Lychee is one of many Vietnamese fruits that have been exported to the US - Photo: Ha Quan

Many key industries expect tax reductions

Maintaining export turnover to the US in the first 9 months of the year at nearly 407 million USD, Mr. Dang Phuc Nguyen - General Secretary of the Vietnam Fruit and Vegetable Association - said that if agricultural products and fruits are reduced to 0% tax, it will be a great advantage for Vietnam compared to countries in the Southeast Asian region such as Thailand, as well as narrowing the competitive gap with South American countries.

Because despite the 20% tax, the above turnover has helped the fruit industry export to the US increase by 60%, which is a positive level in the context of general difficulties. Meanwhile, in the opposite direction, fruit imports from the US are nearly 414 million USD, which means maintaining the trade deficit, but compared to previous years, this trade deficit has narrowed the gap.

Therefore, Mr. Nguyen expects that with the cooperation contracts signed between businesses of the two countries importing fruits from the US up to nearly 3 billion USD announced in the Joint Statement, it will help Vietnamese fruits imported into the US have the opportunity to enjoy 0% tax in the upcoming negotiations, expecting to increase the two-way import-export turnover of fruits to up to 2 billion USD. Especially the products that Vietnam has advantages that South American countries have not been able to produce such as durian, processed fresh coconut, passion fruit, grapefruit...

Meanwhile, Mr. Pham Xuan Hong - Chairman of the Ho Chi Minh City Textile, Embroidery and Knitting Association - said that Vietnam's textile and garment industry has many competitive advantages as it is the second largest exporter in the world and the third largest exporter to the US. The US does not produce textiles domestically, while many US textile and garment brands are producing and exporting in Vietnam.

Therefore, if we continue to negotiate reciprocal taxes and increase cotton imports from the US, it will open up many opportunities to further reduce taxes on Vietnamese textiles and garments entering the US to 0% as expected.

In fact, most of Vietnam's textile products exported to the US market are American brands manufactured in Vietnam, so this is a positive factor to promote trade relations and exports of Vietnam's textile industry to this country.

"This also supports American brands when the US does not produce textiles, has no labor and cost advantages while the competitiveness and production capacity of the Vietnamese textile industry has been affirmed. The tax reduction also helps support American consumers, so I hope that Vietnamese textiles will receive more attention and the US will reduce taxes," Mr. Hong shared.

Criteria for tax reduction

In Executive Order 14346, President Donald Trump expressed his willingness to reduce reciprocal tariffs to 0% on certain imported goods, or modify the tariffs applied under Section 232, based on many factors.

Including the economic value of the trading partner's commitments to the United States in a reciprocal trade agreement, the national interests of the United States, the need to address a declared national emergency, and the need to minimize or eliminate threats to national security.

In addition, there are products that cannot be grown, mined, or produced naturally in the United States or grown, mined, or produced naturally in sufficient quantities to meet domestic demand; certain agricultural products; aircraft and aircraft parts; and non-patented items for use in pharmaceuticals. Accordingly, the list of exempted goods may vary depending on each agreement between the United States and its trading partners.

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Source: https://tuoitre.vn/thoa-thuan-moi-ve-thue-doi-ung-mat-hang-nao-co-co-hoi-huong-thue-0-20251028073614248.htm