(TAP) - The Joint Statement on the Framework for a Reciprocal, Fair, and Balanced Trade Agreement between Vietnam and the United States marks a new milestone in bilateral economic relations. The document not only demonstrates both sides’ commitment to pursuing equitable and transparent trade, but also reflects a strategic adjustment by both nations in response to a volatile global economy and increasingly complex competition.
Prime Minister Phạm Minh Chinh had a brief meeting with U.S. President Donald Trump on the sidelines of the ASEAN - U.S. Summit. Source: Vietnam Government Portal.
On October 26, 2025, Vietnam and the United States jointly announced the Joint Statement on the Framework for a Reciprocal, Fair, and Balanced Trade Agreement (Joint Statement). The event took place on the occasion of U.S. President Donald Trump and Vietnamese Prime Minister Pham Minh Chinh participated in the ASEAN Summit held in Kuala Lumpur, Malaysia, from October 26 to 28, 2025. The Framework for a Reciprocal, Fair, and Balanced Trade Agreement was built to strengthen bilateral economic relations while expanding market access opportunities between the two nations to an unprecedented level. The agreement builds upon and advances the longstanding economic cooperation between Vietnam and the United States, including the Bilateral Trade Agreement signed in 2000 and effective since 2001.
Joint Statement on the Framework for a Reciprocal, Fair, and Balanced Trade Agreement between the United States and Vietnam. Source: The White House
According to the Joint Statement, the Reciprocal, Fair, and Balanced Trade Agreement between Vietnam and the United States includes the following key provisions:
(1) Vietnam grants preferential market access for most U.S. industrial and agricultural export products to Vietnam.
(2) The United States maintains a reciprocal tariff rate of 20%, as stipulated in Executive Order No. 14257 dated April 2, 2025, as amended, on goods originating from Vietnam. It also designates products listed in Annex III of Executive Order No. 14346 dated September 5, 2025, on Adjustment of Potential Tariffs for Allied Partners, to receive a reciprocal tariff rate of 0%.
(3) The United States and Vietnam will engage in constructive cooperation to address the interests of both countries concerning non-tariff barriers affecting bilateral trade in priority sectors.
(4) Vietnam agrees to address multiple barriers, including: accepting vehicles manufactured according to U.S. motor vehicle safety and emissions standards; resolving import licensing for U.S. medical devices; simplifying regulatory requirements and approvals for U.S. pharmaceutical products; fully implementing Vietnam’s obligations under certain international intellectual property treaties to which Vietnam is a party; and addressing U.S. concerns regarding conformity assessment procedures.
(5) The United States and Vietnam commit to addressing and preventing barriers to U.S. agricultural products in the Vietnamese market, including issues related to U.S. regulatory oversight and the acceptance of currently agreed-upon certificates issued by U.S. regulatory authorities.
(6) The United States and Vietnam will finalize commitments on trade, services, and digital investment.
(7) The United States and Vietnam will cooperate to address issues related to intellectual property, labor, environment, customs and trade facilitation, good regulatory practices, and any distortive practices by state-owned enterprises.
(8) The United States and Vietnam commit to enhancing cooperation toward shared goals of strengthening supply chain resilience, including addressing tax evasion and collaborating on export controls.
(9) In addition, the United States and Vietnam acknowledge recent trade agreements between U.S. and Vietnamese companies in the agriculture, aerospace, and energy sectors.
(10) Vietnam Airlines has agreed to purchase 50 aircraft from Boeing, valued at over 8 billion U.S. dollars.
(11) Vietnamese companies have signed 20 memoranda of understanding with U.S. companies to purchase U.S. agricultural products, with an estimated total value of over 2.9 billion U.S. dollars.
Notably, the Joint Statement specifies that in the coming weeks, the United States and Vietnam will work to finalize the Reciprocal, Fair, and Balanced Trade Agreement, preparing for its signing and completing the necessary domestic procedures before the Agreement enters into force.
According to information from the Vietnam Government Portal, since late April 2025, Vietnam and the United States have held multiple rounds of reciprocal trade negotiations at both technical and ministerial levels. The Vietnamese government delegation was led by Minister of Industry and Trade Nguyen Hong Dien and included leaders and officials from the Ministries and agencies of Industry and Trade, Foreign Affairs, Public Security, Finance, Justice, Agriculture and Environment, Science and Technology, Home Affairs, Construction, Health, the State Bank of Vietnam, and the Vietnamese Embassy in the United States. In addition, Minister Nguyen Hong Dien and U.S. Trade Representative Jamieson Greer, along with U.S. Secretary of Commerce Howard Lutnick, conducted multiple direct and online negotiation sessions.
By the early hours of August 1, 2025 (Vietnam time), the White House issued President Donald Trump’s Executive Order adjusting reciprocal tariff rates for 69 countries and territories listed in Annex I. Under this order, Vietnam’s reciprocal tariff rate was reduced from 46% to 20%. According to Vietnam Customs data as of the end of September 2025, the total bilateral trade turnover reached approximately 126.4 billion USD. The announcement of the Joint Statement and the progress toward signing the Reciprocal, Fair, and Balanced Trade Agreement reflect the substantive efforts of both countries to establish a transparent, sustainable, and mutually beneficial economic cooperation framework. However, many key issues still need to be further discussed and finalized in upcoming negotiation rounds. These advances not only contribute to strengthening strategic trust between the two economies but also create opportunities to reshape bilateral trade relations toward greater stability and fairness in the long term.
U.S. Secretary of War Pete Hegseth pays an official visit to Vietnam. Source: X @SecWar
Alongside economic cooperation, defense relations between Vietnam and the United States continue to advance. From November 2 to 3, 2025, U.S. Secretary of War Pete Hegseth made an official visit to Vietnam, holding talks with General Phan Van Giang, and meeting with General Secretary To Lam and President Luong Cuong. The visit concluded successfully with both sides reaffirming their commitment to expanding defense cooperation, highlighting collaboration in defense industry, cybersecurity, and post-war remediation. This contributes to strengthening political trust and deepening the comprehensive partnership between Vietnam and the United States.
Hoang Nam