Vietnam, US to launch talks on new bilateral trade agreement, including tax issues

Vietnam and the U.S. agreed to start negotiations on a bilateral trade deal that will cover tax issues, hours after President Donald Trump announced a 90-day pause on reciprocal tariffs on Wednesday.

The consensus was reached during meetings between Vietnamese Deputy Prime Minister Ho Duc Phoc, who is visiting the U.S. in his capacity as special envoy of Party chief To Lam, and U.S. Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick in Washington D.C.

President Trump on April 2 said that he will levy 46% tariffs on imports from Vietnam as part of a new wave of global impositions, effective from April 9.

Trump on Wednesday dropped his reciprocal tariffs for countries reaching out to the U.S. to negotiate to 10% for 90 days. The 90-day reprieve is applied to nearly 90 nations except for China.

The anticipated deal will be a major breakthrough. Previously, Vietnam had repeatedly proposed signing such an agreement, but the U.S. had not agreed.

The Vietnamese government is expected to establish a ministerial-level technical negotiation team on Friday to concretize the outcomes achieved during the U.S. working trip by a delegation led by Deputy Prime Minister Ho Duc Phoc.

At the meeting with Bessent, Phoc said Vietnam attaches importance to the development of its Comprehensive Strategic Partnership with the U.S. and hopes to promote their economic and trade ties in a balanced, harmonious, and sustainable manner.

Vietnam is ready for negotiations, he stressed, proposing that both sides engage in detailed discussions to reach the agreement as soon as possible.

“This will help promote bilateral economic and trade relations in a stable and sustainable fashion, for the interests of the people and businesses of both countries,” Phoc said.

For his part, Bessent, who has been appointed by the U.S. administration to lead the negotiation team with Vietnam, expressed confidence that the two sides will soon reach appropriate solutions to strengthen economic and trade ties stably for mutual benefits.

The two countries inked a bilateral trade agreement in 2000. At a meeting on Tuesday, Deputy Prime Minister Bui Thanh Son assigned the Ministry of Finance to work with other ministries and agencies to develop a new bilateral agreement with the U.S., aimed at upgrading the existing deal to include provisions on taxation and intellectual property.

Meeting with Commerce Secretary Lutnick, Phoc underscored the importance of the consensus to launch trade negotiations, saying it aligns with the Vietnam-U.S. Comprehensive Strategic Partnership.

He noted Vietnam’s consistent policy of maintaining political, economic, and social stability, while actively pursuing intensive, substantive, and effective international integration.

Deputy PM Phoc called on the U.S. Department of Commerce to closely coordinate with relevant Vietnamese ministries and agencies throughout the negotiation process.

In reply, Lutnick said the U.S. values its relationship with Vietnam, describing the country as a high-potential economy and an important partner for the U.S. in the region.

He noted that the U.S. is currently prioritizing reindustrialization and bringing manufacturing back to the country, along with ensuring fair trade.

He pledged that the Department of Commerce will work closely with Vietnam to negotiate and address issues in bilateral economic and trade relations, aiming for an agreement that supports the development of both nations.

While in the U.S., Phoc also met with U.S. Trade Representative Jamieson Greer, who lauded Vietnam’s proactive and positive steps, which demonstrate the country’s strong commitment to advancing the bilateral economic and trade ties.

Vietnam was one of the first countries to express its willingness to enter negotiations, following last week’s phone call between President Trump and Party chief Lam.

During the talk, the leaders discussed measures to further facilitate bilateral trade. They agreed to maintain discussions to soon sign a bilateral agreement.

Prime Minister Pham Minh Chinh has ordered the immediate establishment of a negotiation team with the U.S., led by Minister of Industry and Trade Nguyen Hong Dien.

The delegation will devise scenarios and appropriate strategies for the negotiations, guided by the principle of “maximizing national interests while ensuring balance and shared risks.”

The Prime Minister emphasized that the process must match Vietnam’s broader international relations strategy and should not negatively impact the 17 free trade agreements already signed with over 60 markets.

At the same time, Vietnam will make every effort to address U.S. trade concerns in a satisfactory way, particularly regarding rules of origin, non-tariff barriers, and intellectual property.

Vietnam will also actively engage in trade exchanges, including aircraft, LNG, and defense and security-related goods, with various countries, including the U.S., Chinh said.

“Resolving one issue must not affect another, and dealing with one partner must not impact our relations with others,” the cabinet leader stressed.