HANOI: Trade negotiations between Vietnam and the United States have taken another step forward with the conclusion of a second round of discussions in Washington. This round aimed to address tariffs and was crucial for Vietnam, which is grappling with the potential threat of a hefty 46 per cent tariff that could disrupt its export-driven economy.
Progress in Negotiations
According to Vietnam’s trade ministry, the latest talks, held from 19 to 22 May 2024, saw Trade Minister Nguyen Hong Dien and US Trade Representative Jamieson Greer make significant headway. The two nations identified several areas where agreement was nearly reached, alongside other issues that require further deliberation.
- Vietnam has a trade surplus of over US$123 billion with the US this year.
- The US has delayed implementing the new tariff until July, giving Vietnam some breathing room.
- Efforts to address the trade imbalance include curbing the export of Chinese goods through Vietnam and increasing imports of American products.
Future Discussions Planned
The talks are expected to continue into early June, as both countries are keen to resolve remaining differences. The outcome of these negotiations is particularly essential for Vietnam, given its significant reliance on US exports.
Energy Sector Talks
In addition to tariff discussions, Minister Dien also engaged in talks concerning nuclear energy with representatives from Westinghouse, following last year’s revival of plans for Vietnamese nuclear power plants. Meanwhile, state energy firm PetroVietnam is set to increase its crude oil purchases from Exxon Mobil.
As these negotiations progress, both Vietnam and the US remain hopeful for a favourable outcome that benefits their economies and addresses mutual concerns.