Vietnam and the US are nearing completion of trade deal negotiations, according to Vietnamese Deputy Prime Minister Pham Gia Tuc. However, US officials expressed more caution regarding the timeline and specific terms of the agreement, highlighting concerns over the trade deficit and regulatory frameworks.
The finalization of a trade deal between Vietnam and the U.S. could impact global supply chains and the flow of goods, particularly for sectors reliant on Vietnamese manufacturing. Differing paces in negotiations highlight ongoing trade tensions and regulatory hurdles that could affect foreign investment and market access.
Vietnam and the United States are close to finalizing trade negotiations, with Vietnamese Deputy Prime Minister Pham Gia Tuc stating that the final text of the agreement has been sent to the U.S. Tuc expressed hope that the U.S. would continue to facilitate stable and sustainable access for Vietnamese goods to the U.S. market. However, U.S. officials conveyed a more cautious stance on the progress and timeline.
U.S. Assistant Secretary of Commerce David Fogel noted that the U.S. trade deficit with Vietnam is the largest it has with any partner, with Vietnam's surplus exceeding $163 billion in the January-August period. Fogel urged Vietnamese businesses to increase investment in the U.S. and suggested the U.S. could export advanced technology to Vietnam, which currently faces restrictions on accessing such technologies. U.S. Ambassador to Vietnam Jennifer Wicks echoed that talks are ongoing and urged Vietnam to adapt its data protection regulations to attract investment and facilitate the deployment of new technologies. She also called for predictable policies and stable pricing rules to encourage foreign investment in Vietnam's energy sector.
Previously, the Trump administration launched investigations into Vietnam's trade practices, resulting in 12.5% tariffs on certain Vietnamese products due to alleged failures to prevent the use of goods made with forced labor. Two other investigations concerning industrial overcapacity and intellectual property rights are still underway and could lead to additional tariffs. Vietnam expects objective assessments in these ongoing investigations.
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