Building trust – Elevating Vietnam's standing.

Vietnam and the United States recently announced a Joint Statement on the Framework for a Reciprocal, Fair, and Balanced Trade Agreement on the occasion of President Donald Trump and Prime Minister Pham Minh Chinh's participation in the ASEAN Summit held from October 26-28 in Kuala Lumpur, Malaysia. A reporter from the Vietnam News Agency (VNA) interviewed Dr. Bui Quy Thuan, Head of the Research Committee of the Vietnam Industrial Park Finance Association (VIPFA), about the significance and impact of this Joint Statement on bilateral relations, as well as its role in enhancing Vietnam's position and affirming its role as a reliable and responsible partner in the global supply chain.

Loading and unloading export goods at Hai Phong International Container Port. (Illustrative photo: Vu Sinh/TTXVN)

What is the significance of Vietnam and the United States issuing a joint statement on a framework for a reciprocal, fair, and balanced trade agreement in strengthening bilateral economic relations, sir?

The joint statement by the United States and Vietnam on the framework for a reciprocal, fair, and balanced trade agreement is a strategic turning point, marking Vietnam's success in negotiating reciprocal tariffs with its US counterpart, as well as Vietnam's consistent diplomatic approach in the current complex geopolitical context.

This declaration establishes an important legal framework and ensures fairness in the economic partnership between Vietnam and the United States, moving towards a long-term, mutually beneficial cooperation framework consistent with the comprehensive strategic partnership between the two countries. This creates stability, confidence, and foresight for businesses and investors in both countries when conducting investment and business activities.

This statement also suggests that instead of conventional trade exchanges, the two countries can cooperate to address core issues such as market transparency, intellectual property protection, and promoting sustainable development. This forms the basis for expanding cooperation into new areas of mutual interest, such as high technology, energy, and the digital economy.

The joint statement on the framework for a reciprocal, fair, and balanced trade agreement will help elevate economic and trade relations to a strategic level and build the trust necessary for a comprehensive trade agreement between Vietnam and the United States in the future.

According to the joint statement, the United States will maintain the 20% reciprocal tariff as stipulated in Executive Order 14257 of April 2, 2025, as amended, on goods originating from Vietnam; and will identify products listed in Appendix III of Executive Order 14356 of September 5, 2025 – “Potential Tariff Adjustments for Likely Oriented Partners” – to qualify for a 0% reciprocal tariff. What does this mean for Vietnam, sir?

The U.S. designating products listed in Annex III of Executive Order No. 14356 of September 5, 2025 – “Potential Tariff Adjustments for Likely-Oriented Partners” – as eligible for a 0% reciprocal tariff rate is highly significant for Vietnam’s key export goods, allowing them to benefit from a 0% tariff rate. This demonstrates that the U.S. may consider Vietnam a like-oriented partner in economic relations, consistent with the comprehensive strategic partnership.

From a legal standpoint regarding recognition as a like-minded partner, Annex III to Executive Order No. 14356 of September 5, 2025, is not merely a preferential treatment but also a formal recognition by the United States of Vietnam as a “like-minded” trade partner.

From an economic perspective, this declaration will strengthen Vietnam's position in the global supply chain. With a 0% tariff, Vietnamese goods will be more competitive in the US market, and Vietnam will become a more attractive and stable investment and business destination for investors seeking to diversify their supply chains. Investors will be more confident in deciding to set up factories in Vietnam, which will fuel a wave of high-quality foreign direct investment (FDI) from the US and Europe in the near future.

Could you please explain the significance of this Joint Statement in helping Vietnam enhance its trade negotiating position and gradually affirm its role as a reliable and responsible partner in the global supply chain?

The joint statement between the United States and Vietnam on the framework for a reciprocal, fair, and balanced trade agreement is a very important step in negotiations with the United States. It also demonstrates that Vietnam's economic diplomacy has reached a new level. At the same time, it enhances Vietnam's negotiating position with the United States and increases its confidence in subsequent detailed negotiations.

Furthermore, this statement helps Vietnam proactively shape a new economic relationship framework with its US partner, particularly within the framework of bilateral trade exchanges, in line with Vietnam's strategic orientation and new economic policies in its current era of development. Simultaneously, through this statement, Vietnam affirms its role as a reliable and responsible partner with the US in adhering to global standards such as transparency and stronger institutional reforms to meet and comply with global trade rules, strengthening its position, enhancing its competitiveness, and affirming the image of a proactive, reliable, and responsible Vietnam in the current new global economic order.

Thank you, sir!

Source: https://baotintuc.vn/kinh-te/xay-dung-niem-tin-nang-tam-vi-the-viet-nam-20251027113708568.htm