Building trust – Elevating Vietnam's position

Vietnam and the United States have just 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 attending the ASEAN Summit held from October 26-28 in Kuala Lumpur, Malaysia. VNA reporter interviewed Dr. Bui Quy Thuan, Head of the Research Board of the Vietnam Industrial Park Finance Association (VIPFA), about the significance of this Joint Statement on the relationship between the two countries as well as enhancing the position and affirming the role of a reliable and responsible partner of Vietnam in the global supply chain.

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

How significant is the joint statement between Vietnam and the United States on the framework of 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 of a reciprocal, fair and balanced Trade Agreement is a strategic turning point, marking Vietnam's success in negotiating reciprocal tariffs with its US partner, as well as Vietnam's consistent diplomatic policy 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 and mutually beneficial cooperation framework in line with the comprehensive strategic partnership between the two countries. This creates stability, confidence and predictability for businesses and investors of both countries when conducting investment and business.

The statement also shows 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 is the foundation for expanding cooperation to new areas of interest to both sides 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 the economic and trade relationship to a strategic level and also 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 duty rate as provided for in Executive Order No. 14257 of April 2, 2025, as amended, on goods originating in Vietnam; and will identify products in the list in Annex III of Executive Order No. 14356 of September 5, 2025 – “Potential Tariff Adjustments for Likely-Oriented Partners” – to enjoy a 0% reciprocal duty rate. What does this mean for Vietnam, sir?

The US's determination of products in the list stated in Annex III of Executive Order No. 14356 dated September 5, 2025 – “Potential Tariff Adjustments for Likely Oriented Partners” – to enjoy a 0% reciprocal tariff rate is very important for Vietnam's key export goods enjoying a 0% tariff rate. This shows that the US can consider Vietnam as a partner with similar orientations in economic relations in line with the comprehensive strategic partnership.

In terms of the legal aspect of recognizing like-minded partners, Annex III of Executive Order No. 14356 dated September 5, 2025 is not only a preference but also an official recognition from the United States for Vietnam to become a “like-minded” trade-oriented partner.

In terms of economics, this announcement will strengthen Vietnam's position in the global supply chain. When enjoying 0% tax, Vietnamese goods will be more competitive in the US market, and at the same time, Vietnam will become a more attractive and stable investment and business destination for investors looking to diversify their supply chains. Investors will be more confident when deciding to locate factories in Vietnam, which will promote a wave of high-quality foreign direct investment (FDI) from the US and Europe in the coming time.

Could you please tell us the significance of this Joint Statement in helping Vietnam improve its position in trade negotiations, gradually affirming 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 of a Reciprocal, Fair and Balanced Trade Agreement is a very important step forward in negotiations with the United States, which also demonstrates that the capacity of economic diplomacy has been raised to a new level in Vietnam's diplomatic policy. At the same time, it helps to improve the negotiating position with the United States and give more confidence in the following detailed negotiations.

In addition, this statement helps Vietnam “proactively shape” a new economic relations framework with its US partners, especially in the framework of bilateral trade exchanges in line with the new strategic orientation and economic policy in the era of Vietnam’s rise. At the same time, through this statement, Vietnam affirms its role as a reliable and responsible partner with the United States in complying with global standards such as transparency and stronger institutional reforms to meet and comply with global trade rules, consolidate its position, enhance its competitiveness and affirm the image of a proactive, reliable and responsible Vietnam in the current new global economic order.

Thank you!

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