Vietnam leader To Lam is aiming to hold trade discussions with Donald Trump in Washington next week, according to people familiar with the plans, after months of talks stalled over the sensitive issue of “transshipped” goods.
The party leader has accepted an invitation to attend the US President’s inaugural Board of Peace meeting, the sources said, speaking on condition of anonymity as the details are not yet public.
They added that To Lam and US officials may also oversee the signing of agreements between Vietnamese and American firms, though no specifics about the potential deals were disclosed, Bloomberg reports.
The discussions have stalled over how to define “transshipped” goods, the people said. The US has warned that such products would face a 40% tariff, a move that could hit Vietnam hard, given its dependence on components and raw materials from China while the United States remains its largest export market.
To Lam is not alone in trying to advance trade matters on the sidelines of Trump’s Board of Peace gathering. Prabowo Subianto, Indonesian President, is also expected to be in Washington and is anticipated to sign a US tariff agreement.
Vietnam was among the first to accept Trump’s invitation to become a “founding member” of the board, a relatively low-risk move aimed at maintaining cordial ties with the US administration.
The export-dependent Vietnam was initially threatened with a 46% tariff as Trump targeted its trade surplus with the United States, the world’s third-largest in 2024 after China and Mexico.
In July, Trump announced a cut to 20%, a move that reportedly surprised Vietnamese leaders who believed they had secured a more favourable rate, and which ultimately led to the trade minister losing his post.
Despite this, Vietnam’s exports showed notable resilience last year, with the trade gap widening to a record US$133.9 billion, up 28% from the previous year, according to official data.
Key elements of the trade negotiations were outlined in a framework issued by the White House in October. Under the plan, Vietnam would grant “preferential market access” to US industrial and agricultural products, while the United States would apply zero tariffs to a selection of items.
Vietnam is aiming for an average annual economic growth of at least 10% over the next five years, despite potential headwinds from US tariffs and global trade uncertainty that could affect exports and investment.
Last year, growth reached 8.02%, falling short of the government’s 8.3%-8.5% target, yet still keeping Vietnam among Asia’s fastest-growing economies.