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27th October 2025

Vietnam-US reciprocal trade agreement provides unprecedented access to each other’s markets

Vietnam will grant preferential market access to nearly all US industrial and agricultural exports, while the US will maintain a 20% reciprocal tariff on Vietnamese goods and apply a zero tariff to selected items.

THE HANOI TIMES —A Framework for an Agreement on Reciprocal, Fair and Balanced Trade between Vietnam and the US will provide both countries’ exporters unprecedented access to each other’s markets, according to the Joint Statement released today [October 26].

The Agreement on Reciprocal, Fair and Balanced Trade will build upon the longstanding economic relationship, including the US-Vietnam Bilateral Trade Agreement signed in 2000 that entered into force in 2001.

According to the joint statement of the agreement, Vietnam will provide “preferential market access for substantially all US industrial and agricultural exports” to Vietnam.

Meanwhile, the US will maintain at 20% the reciprocal tariffs, as outlined in Executive Order 14257 of April 2, 2025, as amended, on originating goods of Vietnam, and will also identify products from the list set out in Annex III to Executive Order 14346 of September 5, 2025, Potential Tariff Adjustments for Aligned Partners, to receive a zero percent reciprocal tariff rate.

The two countries will work constructively in an effort to address both countries’ interests in non-tariff barriers that affect bilateral trade in priority areas.

Vietnam has agreed to address many such barriers including, for example, by accepting vehicles built to US motor vehicle safety and emissions standards; addressing import licenses for US medical devices; streamlining regulatory requirements and approvals for US pharmaceutical products; fully implementing Vietnam’s obligations under certain international intellectual property treaties to which it is a Party; and addressing US concerns with conformity assessment procedures.

Vietnam will facilitate the export of US agricultural products in the Vietnamese market, including about US regulatory oversight and acceptance of the currently agreed certificates issued by US regulatory authorities.

The two countries will finalize commitments on digital trade, services and investment

They will engage to address intellectual property, labor, environment, customs and trade facilitation, good regulatory practices and any distortionary behaviors of state-owned enterprises.

Both sides are committed to strengthening cooperation towards shared goals to enhance supply chain resilience, including addressing duty evasion and cooperating on export controls.

In addition, the two countries take note of recent commercial deals between US and Vietnamese companies in the areas of agriculture, aerospace and energy.

Vietnam Airlines has agreed to purchase 50 aircraft from Boeing, which is worth over $8 billion.

Additionally, Vietnamese companies have signed twenty memorandums of understanding with US companies to purchase US agricultural commodities, with a total estimated value of over $2.9 billion.

In the coming weeks, the US and Viet Nam will work to finalize the Agreement on Reciprocal, Fair and Balanced Trade, prepare the Agreement for signature and undertake domestic formalities in advance of the Agreement entering into force.

Prime Minister Pham Minh Chinh meets President Donald Trump

On October 26, on the sidelines of the 47th ASEAN Summit in Kuala Lumpur, Malaysia, Vietnamese Prime Minister Pham Minh Chinh held a brief meeting with US President Donald Trump during the ASEAN–US Summit.

The prime minister conveyed an invitation from General Secretary To Lam and Vietnam’s senior leaders for President Trump to visit Vietnam, which the president gladly accepted.

The two sides also discussed arrangements for General Secretary To Lam’s visit to the US, while President Trump expressed his wish for Prime Minister Chinh to visit the US at a mutually convenient time.

Both leaders agreed to advance substantively the Comprehensive Strategic Partnership for peace, cooperation and sustainable development. They also agreed to expedite the signing of a reciprocal, fair and balanced trade agreement to promote greater US investment in Vietnam.

Chinh proposed that the US soon recognize Vietnam as a market economy and remove the country from the D1 and D3 strategic export control lists [categories that currently limit access to certain technologies and high-value goods for national security and chemical or biological risk reasons].

President Trump welcomed the proposal and instructed relevant US officials to work with their Vietnamese counterparts to move the process forward.

On the same day, Vietnamese Minister of Industry and Trade Nguyen Hong Dien met with US Trade Representative Chief Jamieson Greer and Deputy Secretary of State Jacob Helberg to discuss cooperation in trade, digital technology, artificial intelligence, supply chain partnerships and the possibility of signing a memorandum of understanding in these areas.

Efforts for reciprocal trade agreement

Since late April 2025, Vietnam and the US have held multiple rounds of reciprocal trade negotiations at both technical and ministerial levels.

The Vietnamese government delegation was led by Minister of Industry and Trade Nguyen Hong Dien, with members from the Ministries and agencies of Industry and Trade, Foreign Affairs, Public Security, Finance, Justice, Agriculture and Environment, Science and Technology, Home Affairs, Construction, Health, the State Bank of Vietnam, and the Vietnamese Embassy in the US.

Several in-person and online negotiation sessions took place between Minister Nguyen Hong Dien and US Trade Representative Jamieson Greer, as well as US Secretary of Commerce Howard Lutnick.

On August 1, the White House published a Presidential Executive Order by President Donald Trump on the adjustment of reciprocal tariffs. Under the order, the US revised tariff rates for 69 countries and territories listed in Annex I, reducing the rate for Vietnam from 46% to 20%.

According to Vietnam Customs, in the first nine months of 2025, the two-way trade reached approximately $126.4 billion.

Source: Linh Pham

Photo: VGP

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The airport, in Bac Ninh Province 40 kilometers from Hanoi, will now handle 50 million passengers and 2.5 million tons of cargo a year by 2050 rather than the original 15 million and 1.6 million tons, according to a report by The State Appraisal Council.

Construction had begun in December last year, and the upgrades were approved recently by the Ministry of Construction.

It is envisioned as the northern region’s aviation gateway for passenger and cargo transport, and is being built by property developer Masterise Group.

It will have four runways spaced well apart to allow independent operations.

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Hanoi’s current main airport is Noi Bai International Airport with a capacity of 25 million passengers a year and to be expanded to 55 million by 2030 and 85 million by 2050.

Vietnam, China accelerate ACFTA 3.0 signing process

28th October 2025

Vietnam's key export products to China include agricultural produce (rice, coffee, cashews, fruits), seafood, electronic components, textiles, rubber, and crude oil.

Vietnam is finalizing its domestic procedures to proceed with signing the Protocol to upgrade the ASEAN-China Free Trade Agreement (ACFTA 3.0) as planned. This significant commitment marks a new step forward in bilateral economic relations, which have been elevated to a strategic level with the establishment of the "Vietnam-China Community with a Shared Future."

On the sidelines of the 47th ASEAN Summit in Malaysia, Vietnamese Minister of Industry and Trade Nguyen Hong Dien held a bilateral meeting with Chinese Minister of Commerce Wang Wentao on October 27.

During the meeting, the two ministers agreed that amidst complex developments in the regional and global economy, both sides need to strengthen and promote cooperation to create practical value for their citizens and businesses. The upgrade of ACFTA to version 3.0 will not only expand the scope of tariff preferences but also create a more favorable legal framework for trade in services, investment, and cooperation in new areas such as the digital economy and green transformation.

In recent years, China has affirmed its position as Vietnam's most important trading partner. In 2024, bilateral trade turnover reached $205.2 billion, setting a new record for bilateral commerce. This figure not only reflects the immense scale of trade but also highlights the high complementarity in the commodity structure between the two economies.

Data from the Vietnam Trade Office in China shows that strong growth momentum has been maintained in 2025. Export turnover to the Chinese market for the first 8 months recorded a 9.2% increase, 2.1 percentage points higher than the 7-month figure.

Vietnam's key export products to China include agricultural produce (rice, coffee, cashews, fruits), seafood, electronic components, textiles, rubber, and crude oil. Particularly, products such as durian, dragon fruit, mango, and passion fruit not only have a firm foothold but also recorded strong growth in the final months of 2025.

Conversely, Vietnam imports machinery, industrial equipment, raw materials for production, consumer goods, and electronic components from China.

High-Tech FDI boosts Vietnam's global value chain standing

28th October 2025

Vietnam is targeting double-digit growth in the 2026–2030 period, with high-tech FDI expected to be one of the main drivers.

From an agricultural economy, Vietnam has undergone a powerful transformation to become a competitive industrial manufacturing hub in the region.

During this process, hi-tech FDI has played a pivotal role, with the presence of "eagles" like Samsung, LG, Intel, and Honda, among others.

These corporations have not only brought in capital and advanced technology but also contributed to reshaping industrial capabilities, training high-quality human resources, and paving the way for Vietnam to integrate more deeply into global value chains.

After 17 years of its operations in Vietnam, from an initial investment of $670 million in 2008, Samsung has now invested over $23.2 billion, running 6 factories and 1 research and development (R&D) center, making Vietnam the largest mobile phone production base outside of South Korea.

Other major names like LG, Intel, and Honda have also chosen Vietnam as a strategic production hub, maintaining their commitment for several decades.

According to data from 2015–2024, the processing and manufacturing industry has consistently led in FDI attraction, accounting for 50–80% of total registered capital. Many multi-billion dollar projects in electronics, semiconductors, renewable energy, and high technology have been flowing into Vietnam, contributing to elevating the nation's position on the global technology map.

According to Professor Nguyen Mai, a leading expert on foreign investment, "The presence of 'big eagles' like Samsung has created a strong spillover effect, attracting more high-tech investors and forming increasingly tight linked value chains in Vietnam."

However, experts also warn that to attract more strategic FDI projects, Vietnam needs to continue to significantly improve its investment environment.

This includes three key issues: first, upgrading technical and logistics infrastructure; second, developing high-quality human resources; and third, reforming investment incentive policies, especially for new sectors such as semiconductors, artificial intelligence (AI), and clean energy.

Vietnam is targeting double-digit growth in the 2026–2030 period, with high-tech FDI expected to be one of the main drivers.

According to experts, high technology, especially in strategic sectors, has a strong ripple effect. Attracting it first to learn, cooperate, and develop internal capabilities is a long-term approach that will help Vietnam not just be a manufacturing location but also a regional innovation hub.

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