The US unveiled details of its proposed trade deal with Vietnam on Sunday, part of a series of measures announced during the first day of President Donald Trump’s regional visit.

Key specifics remain unresolved, but this marks the first outline from the Trump administration since a 20% headline tariff was introduced in July.

According to the statement, the framework would see Vietnam grant preferential market access for nearly all US industrial and agricultural exports, while the US would eliminate tariffs on certain selected products.

The announcement did not specify which products would be excluded, but stated that the agreement is expected to be finalised “in the coming weeks.”

The announcement came during Trump’s visit to Malaysia, which is hosting an Association of Southeast Asian Nations summit. During the trip, he signed trade deals with Cambodia and Malaysia and a framework agreement with Thailand.

Vietnam, a major exporter of goods ranging from coffee and clothing to engine parts, had initially faced a 46% US tariff, which was lowered to 20% in July. While this was the first deal announced in the region, the rate remains one percentage point higher than those for neighbouring Indonesia, Malaysia, the Philippines, and Thailand.

The Vietnam deal, like other Southeast Asian agreements, still lacks clarity on how the US will define “transshipped” goods, which could face a 40% tariff under the agreement, Bloomberg reports.

This uncertainty places Vietnam in a difficult position, as China remains its largest trading partner and primary source of imported components and raw materials.

The US statement noted that Vietnam has agreed to tackle issues such as recognising US vehicle standards, easing import regulations for US medical devices and pharmaceuticals, and meeting international intellectual property obligations.

The two countries will also finalise commitments on digital trade, services, and investment.

Vietnam has set a bold economic growth target of at least 10% for next year, despite global trade uncertainties that could weigh on exports and investment flows.

The country’s economy grew 8.2% last quarter, marking its fastest pace in three years, as factories ramped up production to ship goods to the US ahead of higher tariffs. Vietnam is targeting 8.3%-8.5% growth in 2025.