The U.S.-Vietnam Reciprocal Trade Agreement Enters a Critical Stage, with Details of the New Round of Negotiations Revealed

On November 12, the Vice Minister of Vietnam's Ministry of Industry and Trade, acting as the Deputy Head of the government's negotiation delegation, held a working meeting with the U.S. Deputy Trade Representative. Recently, Vietnam and the United States have concluded technical-level negotiations on the Agreement on Reciprocal, Fair and Mutually Beneficial Trade. During the 8th Ministerial-level Trade Negotiations, the two sides reached a core consensus, finalized the framework of the bilateral trade agreement, and took further steps to implement it.

It is reported that the agreement will be formally signed within the next few weeks. Rick Switzer, the U.S. Deputy Trade Representative, made positive remarks during the meeting, affirming the progress Vietnam has made in trade policy reform, institutional improvement, and fulfillment of international integration commitments. He also emphasized that cooperation between the two countries has created favorable conditions for the negotiation process.

Prior to this meeting, in response to adjustments in U.S. tariff policies, Vietnam's technical negotiation team had conducted multiple rounds of consultations with relevant U.S. agencies since the beginning of May this year. This round of negotiations and technical consultations marks the transition of U.S.-Vietnam bilateral trade cooperation from the "framework consensus" stage to the "substantive implementation" stage, with several details exposed.

According to the fact sheet released by the Office of the United States Trade Representative and the notification from Vietnam's Ministry of Industry and Trade, the key provisions of the agreement include:

1. Differentiated tariff adjustments

The United States will maintain a reciprocal tariff rate of 20% on goods originating from Vietnam, while confirming that some products will enjoy a 0% tariff rate.

2. Elimination of non-tariff barriers

The agreement addresses non-tariff barrier issues. Vietnam has committed to accepting vehicles that meet U.S. safety and emission standards, simplifying the import licensing process for U.S. medical devices, accelerating the approval process for U.S. pharmaceuticals, and fulfilling international intellectual property obligations.

3. Further opening up of investment sectors

The agreement incorporates cooperative commitments in the fields of digital trade, services, and investment. The two sides have agreed to strengthen the resilience of supply chains, focus on cracking down on tax evasion and export control violations, and provide a more stable investment environment for multinational enterprises.

4. Transparency of rules of origin

The United States will formulate clearer rules of origin standards for goods produced in Vietnam, helping foreign-invested enterprises predict policy risks and reduce trade compliance costs.

Currently, both Vietnam and the United States are advancing the final work before the agreement is signed. The two sides have committed to strengthening collaboration, efficiently completing the remaining procedures, and ensuring that the finalized agreement takes effect and is implemented as soon as possible. Once the agreement is implemented, local Vietnamese enterprises will have easier access to bilateral and multilateral trade systems, creating conditions for expanding into other key markets.