Vietnam, US issue joint statement on framework for agreement on reciprocal, fair, and balanced trade

Vietnamese Prime Minister Pham Minh Chinh and U.S. President Donald Trump on October 26 announced a Joint Statement on Vietnam-US Framework for an Agreement on Reciprocal, Fair, and Balanced Trade.

The announcement was made on the occasion of the two leader’s attendance at the 47th ASEAN Summit held in Kuala Lumpur, Malaysia.

The Joint Statement reflects the outcomes of reciprocal trade negotiations between the two countries to date, recognising the efforts by both governments and business communities to foster a balanced, stable and sustainable economic and trade relationship, in line with the bilateral Comprehensive Strategic Partnership between the two countries.

The joint statement outlines key components of the agreement, with both sides working constructively to address mutual concerns related to non-tariff barriers, reach consensus on digital trade, services, and investment commitments, and engage in discussions on intellectual property, sustainable development, and supply chain resilience.

As part of key terms of the agreement, Vietnam will provide preferential market access for substantially  all US industrial and agricultural exports to Vietnam.

The US will maintain at 20% the reciprocal tariffs, as set forth in Executive Order 14257 of April 2, 2025, as amended, on originating goods of Vietnam, and will also identify products from the list set out in Annex III to Executive Order 14346 of September 5, 2025, Potential Tariff Adjustments for Aligned Partners, to receive a zero percent reciprocal tariff rate.

Going forward, Vietnam and the US will continue discussions and follow-up actions to finalise the agreement, guided by the principles of openness and equality; respect for independence, sovereignty and political regimes; and mutual benefit; while taking into account their respective levels of development.

In the first nine months of the year, the two-way trade turnover between the two countries reached $126.4 billion, surging 27.3% year-on-year. Vietnam’s exports to the US were estimated at $112.8 billion, up 27.7%, and accounting for 32.3% of the country’s total export value.