Vietnamese firms must pay more heed to complying with U.S. trade regulations: official

The rapid growth of Vietnam’s export to the U.S. requires Vietnamese businesses to pay more attention to complying with trade regulations, avoiding the risk of being investigated or sued, said Do Ngoc Hung, Vietnam's trade counselor in the U.S.

Hung made the remark in a talk with the Vietnamese government's news portal after Donald Trump took the oath of office, becoming the U.S. President for the second term.

According to the U.S. Department of Commerce, the U.S.'s import and export turnover reached $4,432 billion in the first 10 months of 2024, up 2.7% year-on-year. Of this, imports totaled about $2,708 billion, and exports were $1,724 billion. The country's trade deficit amounted to $984 billion.

Statistics from the U.S. International Trade Commission (USITC) showed that the total two-way trade between Vietnam and the U.S. reached $112 billion during the same period. Vietnam’s trade surplus with the U.S. was $102 billion, up 26% year-on-year and equivalent to 10.4% of the U.S.'s total trade deficit.

However, according to Hung, U.S. exports to Vietnam increased by nearly 30% in the period, reaching $10 billion. Despite this, the U.S.'s trade deficit with Vietnam ranked third, behind China and Mexico.

Vietnam’s value of export to the U.S. accounted for 30% of ASEAN's total export to this market.

A bright spot in the Vietnam-U.S. trade relationship last year was the export of agricultural, forestry, and fishery products, which reached about $12.3 billion by the end of October 2024.

This accounted for 21.7% of Vietnam’s total fishery, forestry and agricultural exports worldwide and 10% of total exports to the U.S., marking a 24.6% increase over the same period in 2023.

The Vietnam Trade Office in the U.S. emphasized that rapid growth in trade with the U.S. means Vietnamese businesses must focus on complying with U.S. trade regulations to avoid risks such as lawsuits, investigations, and the imposition of trade defense measures.

The U.S. to prioritize bilateral cooperation with each partner

Along with a significant increase in trade defense measures (10 cases involving Vietnam), the U.S. has strongly enforced the Forced Labor Prevention Act. As a result, Vietnam's exports may be affected, with goods potentially being returned or delayed at customs, causing price increases and reducing competitive advantages.

Peter Navarro, a senior counselor for trade and manufacturing for U.S. President Donald Trump, has advocated for Congress to pass the Reciprocal Trade Act (USRTA). This would allow the U.S. to increase tariffs to match those of countries imposing higher tariffs.

The Act is designed to pressure trading partners into reducing tariffs on U.S. goods and eliminating non-tariff barriers, or the U.S. would raise tariffs to mirror those of its trading partners.

If the USRTA is enacted, Navarro suggested the economies prioritized in negotiations would include India and China (group 1), the EU (group 2), and Thailand, Taiwan, and Vietnam (group 3).

The Vietnam Trade Office in the U.S. stated that over the next four years, the new U.S. administration is expected to reduce its participation in multilateral economic cooperation, citing that it is negatively impacting the country’s economic development.

Instead, the U.S. will likely focus on bilateral cooperation with individual partners, making it easier to negotiate, manage, and implement agreements that ensure economic benefits for the U.S.

Many experts believe 2025 will continue to be a challenging year for the U.S. economy, with growth rates remaining low and inflation still high. Energy prices are likely to fluctuate as global conflicts persist. Many analysts predicted that the trend of high consumer spending will not last, and the U.S. people will likely tighten their spending if the situation doesn’t improve.

Regarding the impact on Vietnam, the Vietnam Trade Office in the U.S. noted that U.S. officials appreciate Vietnam’s growing role, particularly following the upgrade of U.S-Vietnam relations to a comprehensive strategic partnership. Both countries now consider each other as top strategic partners, with increasingly important positions and roles in the region and globally.

In the short term, achieving a balanced, sustainable, and mutually beneficial trade relationship has become more urgent. Vietnam must continue to open its market, accelerate the resolution of concerns of the U.S. business community, and demonstrate its commitment to maintaining strong trade and investment ties, according to the Vietnam Trade Office in the U.S.

With a focus on traditional energy, cooperation in rare earth mining presents substantial opportunities, especially as the two countries look ahead to celebrating the 30th anniversary of diplomatic relations in 2025, it added.