Vietnam Begins Second Round Of Trade Discussions With The US

The Vietnamese Ministry of Industry and Trade confirmed the development on Tuesday, noting that the latest round follows an earlier meeting held at the beginning of the month.

The US has temporarily held off on implementing the full 46 per cent tariff, opting instead for a provisional 10 per cent rate, which is set to remain in effect until July.

Source : Freepik

Vietnam has commenced a second round of trade negotiations with the United States in Washington, aiming to resolve tensions over a looming 46 per cent tariff that threatens its export-reliant economy. The discussions, which started on Monday and will continue through May 22, are part of a broader effort by Hanoi to preserve its strong trade ties with its largest export market.

The Vietnamese Ministry of Industry and Trade confirmed the development on Tuesday, noting that the latest round follows an earlier meeting held at the beginning of the month, reported Reuters.

“The two countries had discussions on the overall approach to resolving fundamental issues of mutual concern and accelerating the negotiation process,” the ministry stated. “Vietnam and the US are also speaking about current policies as a basis for proceeding to next steps.”

Diverse Delegation Tackles Trade and Energy Initiatives

Trade Minister Nguyen Hong Dien is heading Vietnam’s delegation, accompanied by representatives from a wide range of industries, including agriculture, construction, and technology. High-level officials from the central bank and the Ministry of Finance are also participating in the talks.

This latest engagement follows Dien’s earlier bilateral meeting with US counterpart Jamieson Greer in South Korea on the sidelines of the APEC summit. Beyond trade matters, Dien also sat down with executives from US nuclear power firm Westinghouse in Washington. Discussions centred on atomic energy cooperation, as Vietnam revives its nuclear ambitions after pausing the initiative years ago.

Strategic Moves to Maintain US Market Access

The US has temporarily held off on implementing the full 46 per cent tariff, opting instead for a provisional 10 per cent rate, which is set to remain in effect until July. A more severe tariff, if enforced, could significantly disrupt Vietnam’s manufacturing sector, which is heavily dependent on American demand.

Vietnam’s trade surplus with the United States reached over $123 billion in 2024, underscoring the scale of its economic dependence. In response to US concerns, Hanoi has taken steps to address the imbalance. These include increasing purchases of American products and limiting the transhipment of Chinese goods through Vietnamese ports to the US market.

Meanwhile, the Ministry of Finance announced that PetroVietnam, the state-owned energy firm, is preparing to boost crude oil imports from Exxon Mobil. Additionally, Vietnam’s rubber and maritime corporations are working on plans to establish operations in the US, further deepening economic ties and possibly mitigating some of the friction in trade relations.