Vietnam, US reach agreement on landmark trade deal framework

Vietnam's Party chief To Lam and U.S. President Donald Trump on Wednesday stated that they welcome the agreement reached by the two countries' negotiating teams on the Joint Vietnam-United States Statement on a Fair, Balanced, and Reciprocal Trade Agreement Framework.

Lam and Trump held a telephone conversation at 8 p.m (Vietnam time) on the same day to discuss bilateral relations and negotiations on reciprocal tariffs, Vietnam's Ministry of Foreign Affairs reported.

President Trump said he highly appreciates Vietnam’s commitment to offering preferential market access to U.S. goods, including large-engine vehicles.

He affirmed that the U.S. would significantly reduce reciprocal tariffs on many of Vietnam's export items and would continue to work with the Southeast Asian country to address obstacles affecting bilateral trade ties, particularly in areas prioritized by both sides, according to the ministry.

Party leader Lam suggested the U.S. soon recognize Vietnam as a market economy and remove export restrictions on some high-tech products.

Lam and Trump also discussed key orientations and major measures to bolster the Comprehensive Strategic Partnership in the coming years.

The two leaders agreed to enhance delegation exchanges and high-level and all-level contacts, and strengthen cooperation in the areas of trade and investment, especially in key and breakthrough sectors such as science and high technology.

The two leaders also affirmed their desire to continue strengthening bilateral cooperation for the benefit of both countries and to contribute to peace, stability and development in the region and the world.

They expressed their delight at the strong and positive development of bilateral relations, Vietnam's Ministry of Foreign Affairs reported.

On this occasion, Party General Secretary Lam reiterated his invitation for President Trump and the First Lady to visit Vietnam, and expressed his hope to meet President Trump again in the near future.

Trump warmly thanked Lam for the invitation and expressed his desire to meet again soon.

On Truth Social, US President Trump wrote: "It will be a Great Deal of Cooperation between our two countries. The Terms are that Vietnam will pay the United States a 20% Tariff on any and all goods sent into our Territory, and a 40% Tariff on any Transshipping."

This is down significantly from the 46% in the original reciprocal tariff plan announced on April 2, 2025

"In return, Vietnam will do something that they have never done before, give the United States of America TOTAL ACCESS to their Markets for Trade. In other words, they will "OPEN THEIR MARKET TO THE UNITED STATES," meaning that, we will be able to see our product into Vietnam at ZERO Tariff."

"SUV or, as it is sometimes referred to, Large Engine Vehicle, which does so well in the United States, will be a wonderful addition to the various product lines within Vietnam. Dealing with General Secretary To Lam, which I did personally, was an absolute pleasure," he added.

According to a mid-year survey by AmCham Ho Chi Minh City, released on June 25, the most pressing concern of the chamber's members across all sectors was the potential impact of U.S. tariffs.

More than one-third (36%) of companies said they were “extremely concerned,” and another 41% were “somewhat concerned.”

Many reported that U.S. trade policies had already “somewhat” or “significantly” hurt their operations. Manufacturers and exporters were particularly vocal, with some warning that future investment or expansion could hinge on greater predictability in trade relations.

U.S. President Donald Trump on April 2 said that he would levy massive 46% tariffs on imports from Vietnam as part of a new wave of global impositions, effective from April 9. Trump on April 9 dropped his reciprocal tariffs for countries reaching out to the U.S. to negotiate to 10% for 90 days.

After the U.S. announced the delay and agreed to start negotiations with Vietnam, Prime Minister Pham Minh Chinh formed a government negotiation team, led by Minister Dien.

From early May, the Vietnamese technical delegation worked with relevant U.S. agencies on bilateral trade negotiations.

The first round of bilateral trade pact negotiations took place on May 16 in Jeju, South Korea, immediately after the conclusion of the 31st APEC Ministerial Meeting on Trade (MRT 31). The second round was held from May 19 to 22 and the third took place from June 9-12, both in Washington D.C.

On June 19, Minister Dien had an online round of negotiations with U.S. Secretary of Commerce Howard Lutnick and Trade Representative Jamieson Greer.