Vietnam and the United States have commenced the second round of trade negotiations in Washington, the Vietnamese government announced on Tuesday, aiming to secure an agreement that would prevent a proposed 46% tariff which could undermine Vietnam’s export-driven growth.
The trade ministry stated that the formal talks began on Monday and are scheduled to continue until 22nd May. The first round took place earlier this month.
“The two countries had discussions on the overall approach to resolving fundamental issues of mutual concern and accelerating the negotiation process,” the ministry stated.
“Vietnam and the US are also speaking about current policies as a basis for proceeding to next steps.”
Trade Minister Nguyen Hong Dien is heading the delegation, which features representatives from industries including construction, agriculture, and technology, along with officials from the central bank and finance ministry, Reuters news agency reports.
Last week, Dien also met with his US counterpart, Jamieson Greer, in South Korea after the APEC meeting.
The US has postponed the enforcement of the 46% tariff on Vietnam until July, temporarily replacing it with a 10% rate. If applied, the higher tariff could disrupt Vietnam’s growth due to its strong dependence on exports to the US, its biggest trading partner.
In 2024, Vietnam, a key manufacturing hub for many Western companies, reported a trade surplus exceeding $123 billion with the US.
To reduce the trade surplus, Hanoi has taken steps such as limiting the transit of Chinese goods to the US through its territory and boosting imports of American products.
On Monday, Trade Minister Dien also met with representatives from US energy firm Westinghouse to discuss nuclear technology, following the government’s decision last year to restart plans for developing nuclear power plants, the ministry stated.
In a separate statement, the finance ministry revealed that state energy company PetroVietnam intends to increase crude oil purchases from Exxon Mobil.
In addition, Vietnam’s rubber and maritime companies are exploring plans to set up operations in the United States.