HANOI, October 26, 2025: The United States and Vietnam on Sunday issued a joint statement outlining a framework for a reciprocal, fair and balanced trade agreement, expanding their long-standing bilateral economic ties. The announcement was made as U.S. President Donald Trump and Vietnamese Prime Minister Phạm Minh Chính attended the 47th ASEAN Summit in Kuala Lumpur.
The framework builds on the 2000 U.S.-Vietnam Bilateral Trade Agreement, which came into force in 2001, and reflects both countries’ commitment to deepening economic cooperation. Under the joint statement, Vietnam has agreed to provide preferential market access for substantially all U.S. industrial and agricultural exports, reinforcing a trade relationship that has grown significantly in recent years.
The United States will maintain a 20 percent reciprocal tariff on originating goods from Vietnam, consistent with Executive Order 14257 issued on April 2, 2025, as amended. In addition, selected Vietnamese goods listed under Annex III of Executive Order 14346, issued on September 5, 2025, will be eligible for zero percent reciprocal tariffs. These measures are aimed at creating a more balanced trade environment between the two nations.
The two sides have agreed to work collaboratively to address non-tariff barriers in several priority sectors. Vietnam will begin recognizing U.S. motor vehicle safety and emissions standards and will make regulatory changes to improve market access for U.S. medical devices and pharmaceutical products. The country will also implement its commitments under international intellectual property agreements and address U.S. concerns regarding conformity assessment procedures.
Tariff structure adjusted under executive orders
Further cooperation will focus on eliminating trade barriers affecting U.S. agricultural products in the Vietnamese market. This includes the recognition of U.S. regulatory oversight and acceptance of relevant certification issued by U.S. authorities. These commitments are intended to improve predictability and transparency for exporters on both sides.
Commercial deals accompanied the joint statement. Vietnam Airlines confirmed it will purchase 50 aircraft from Boeing, valued at over $8 billion. Additionally, Vietnamese businesses signed 20 memorandums of understanding with U.S. firms for the purchase of U.S. agricultural commodities, with an estimated total value of $2.9 billion.
According to Vietnam’s Ministry of Industry and Trade, bilateral trade between the two countries reached $126.4 billion in the first nine months of 2025, representing a 27 percent increase compared to the same period in 2024. Vietnam’s trade surplus with the U.S. expanded to $99.1 billion, up from $77.2 billion a year earlier.
Agreement to align with international trade standards
The framework also outlines areas for future collaboration, including digital trade, services, investment, supply chain resilience, customs practices, and the operation of state-owned enterprises. Both countries emphasized the importance of upholding international trade rules and improving market access through transparent and enforceable commitments.
The United States and Vietnam will now begin the final stages of preparing the agreement for signature, completing required domestic procedures ahead of its formal entry into force. The announcement marks a step forward in institutionalizing trade cooperation between the two countries, with implementation to follow upon ratification by both sides. – By Content Syndication Services.