Vietnam endeavoring to improve trade balance with US: Deputy Minister

Vietnamese Minister of Industry and Trade Nguyen Hong Dien is expected to hold direct discussions with U.S. Trade Representative Jamieson Greer on economic and trade issues of the two countries' mutual interest next week.

Deputy Minister Nguyen Sinh Nhat Tan disclosed the information at the government’s monthly press meeting on Wednesday.

He emphasized that Vietnam and the U.S. are complementary economies. The trade imbalance between the two countries results from the complementary nature of their economies and the structure of their exports, rather than other reasons.

Vietnamese goods exported to the U.S. mainly compete with third countries, not directly with American companies in the U.S. market. This creates an opportunity for American consumers to access cheaper Vietnamese products, Tan added.

"Vietnam is an open economy and in the process of international integration. The country follows a free trade policy; the tariff differential for U.S. goods is not significant and the tariffs could continue decreasing in the future, as Vietnam aims to reduce the MFN (Most Favored Nation) tariffs for many products," he said.

According to Tan, some U.S. products with a high competitive advantage such as cars, agricultural products, liquefied gas, and ethanol, will benefit from this policy. This will also generate positive import flows from the U.S., contributing to improving the trade balance.

Tan also mentioned that the two countries have established a policy dialogue mechanism under the Vietnam-U.S. Trade and Investment Framework Agreement (TIFA). Additionally, the Vietnamese government has proactively instructed ministries and agencies to review obstacles and develop solutions to address issues of U.S. concerns.

This process will be based on fair and reciprocal trade, in compliance with the law, while ensuring the balanced and satisfactory interests of both sides.

Vietnam will also create favorable conditions for U.S. investors to participate in the formation and development of key industries in Vietnam, particularly in strategic energy sectors such as new energy, hydrogen, and nuclear power.

This will lay the foundation for increased imports of liquefied gas, fuel, machinery, and technology from the U.S., thereby helping to improve the trade balance, he added.

According to the Deputy Minister, as soon as Donald Trump was elected U.S. President for the second time, Prime Minister Pham Minh Chinh instructed lower authorities to proactively study policies that President Trump might introduce.

To date, the U.S. administration has implemented tariff policies on certain goods and countries, which have had varying impacts. Through the U.S. Embassy in Vietnam and the Vietnamese Embassy in the U.S., Vietnam's trade ministry has conveyed Vietnam’s desire to maintain and build a harmonious, sustainable, and mutually beneficial economic relationship with the U.S., Tan noted.

“Vietnam affirms that there is no policy that could negatively affect American workers or national security,” he stressed.