Vietnam - US agree on reciprocal, fair and balanced Trade Agreement Framework

Photo caption — Loading and unloading export goods at Hai Phong International Container Port. Illustration photo: Vu Sinh/VNA

The reciprocal, fair and balanced Trade Agreement will inherit and develop on the foundation of the long-standing economic relationship between the two countries, including the US-Vietnam Bilateral Trade Agreement signed in 2000 and effective since 2001.

According to the Ministry of Industry and Trade , the key provisions of the reciprocal, fair and balanced Trade Agreement between the United States and Vietnam will include: Vietnam will grant preferential market access to nearly all US agricultural and industrial exports.

At the same time, the United States will maintain the 20% reciprocal tax rate as prescribed in Executive Order No. 14257 dated April 2, 2025, as amended, for goods originating from Vietnam; at the same time, it will identify products in the list stated in Appendix III of Executive Order No. 14356 dated September 5, 2025 - "Potential Tax Adjustments for Likely Oriented Partners" to enjoy a 0% reciprocal tax rate.

The United States and Vietnam will work constructively to address mutual concerns regarding non-tariff barriers affecting bilateral trade in priority sectors.

Vietnam has agreed to address the above-mentioned barriers such as accepting vehicles manufactured according to US safety and emission standards; and resolving issues related to US medical equipment import licenses.

Additionally, simplify regulatory requirements and approval processes for U.S. pharmaceuticals; fully implement Vietnam's obligations under several international intellectual property treaties to which Vietnam is a party; and address U.S. concerns related to conformity assessment procedures.

The United States and Vietnam have committed to address and prevent barriers to U.S. agricultural products in the Vietnamese market, including monitoring mechanisms in accordance with U.S. regulations and accepting mutually agreed-upon certificates issued by U.S. regulatory agencies.

On the other hand, the United States and Vietnam will agree on commitments related to digital trade, services and investment.

In particular, the United States and Vietnam will discuss intellectual property, labor, environment, customs and trade facilitation, good regulatory practices, and trade-distorting practices (if any) by state-owned enterprises.

In addition, the United States and Vietnam committed to strengthening cooperation toward common goals of enhancing supply chain resilience, including addressing tax evasion and coordinating export controls.

Additionally, the United States and Vietnam noted recent trade agreements between U.S. and Vietnamese businesses in the agriculture, aerospace, and energy sectors.

Vietnam Airlines has signed a contract with Boeing to buy 50 aircraft with a total value of over 8 billion USD. Vietnamese enterprises have signed twenty memorandums of understanding with US enterprises on purchasing US agricultural products, with a total estimated value of over 2.9 billion USD.

In the coming weeks, the United States and Vietnam will continue to discuss and finalize the content of the reciprocal, fair, and balanced Trade Agreement, prepare for the signing of the Agreement, and carry out the necessary internal procedures for the Agreement to officially come into effect.