U.S. trade negotiations progress with prominent corporate entities in our region

Ha Noi - In a bid to shift the trade balance between Vietnam and the US, Minister of Industry and Trade Nguyễn Hòng Diện chaired a meeting with major enterprises on May 7, 2025. The focus? Implementing strategic measures to promote trade agreements and foster a harmonious trade relationship.

Enterprises such as Petrovietnam, Petrolimex, EVN, Vietnamese Airlines, and Vietjet Air were among the participants. These corporations have notably racked up substantial imports from the US, including aircraft, machinery, GPU chips, raw materials, and fuels, totaling billions of dollars.

During the meeting, the corporations reported on the progress of procurement agreements signed in 2025, discussed market demands, and outlined plans to meet US partners to sign contracts and advance the implementation of previously signed agreements and memorandums of understanding.

Minister Diện, who heads Vietnam's government negotiation delegation on the reciprocal trade agreement with the US, stressed the pressing need for both parties to urgently address outstanding issues to facilitate the trade of essential goods and services. He urged enterprises to step up their efforts to tap into the vast potential of the US market and contribute to a more balanced, sustainable trade relationship.

Vietnam-US Trade Dynamics and Context

The past few years have seen an exponential growth in Vietnam-US trade, despite a lingering trade imbalance in Vietnam's favor. In the first quarter of 2025, Vietnam exported approximately $31.4 billion worth of goods to the US, while imports were around $4.1 billion. This 20% year-on-year increase underscores the rapid growth in bilateral commerce but also highlights the trade imbalance [3].

Vietnam's ascent as a manufacturing hub has been boosted by the US-China trade war, with numerous US firms like Apple and Intel shifting production to Vietnam to dodge tariffs on Chinese goods. This trend has consolidated Vietnam's position as a critical alternative supply chain partner for the US [1].

Major Vietnamese Enterprises' US Imports

The government's strategic push to diversify and expand imports from the US aims to address the trade imbalance. The telecommunications, energy, and airline sectors are being particularly targeted [2].

Bridging the Gap

Bilateral negotiations are underway to tackle trade barriers and bolster cooperation in critical sectors, setting the stage for a more equitable, long-term trade partnership [3]. The US is prepared to offer tariff relief in exchange for Vietnam's commitment to enhancing intellectual property protections and clamping down on trans-shipment of Chinese goods through Vietnamese channels [1].

The US has temporarily eased tariffs for 90 days to facilitate trade talks and potentially pave the way for broader trade agreements, signaling a diplomatic high point in US-Vietnam relations, upgraded to a Comprehensive Strategic Partnership in 2023 [1][4]. These trade talks and policy adjustments in 2025 exemplify a collaborative approach to achieving a balanced trade relationship and reducing China's dominance in global supply chains.

Minister of Industry and Trade Nguyễn Hồng Diên (standing) chairs a working session with major our websiteese enterprises on May 7. - VNA/VNS Photo

In a nutshell, Vietnam-US trade relations involve:

A significant export surplus for Vietnam,
Strategic relocation of US manufacturing to Vietnam,
Governmental efforts to boost US imports, especially in the telecommunications, energy, and aviation sectors,
Ongoing negotiations aimed at tariff reductions and deeper supply chain integration,
A broader diplomatic and economic alignment that seeks a balanced, sustainable trade partnership.

These developments demonstrate both countries' shared priorities to strengthen economic ties, address trade imbalances, and consider geopolitical implications related to supply chain diversification away from China. The collaborative approach to the trade talks and policy adjustments in 2025 is a testament to this commitment.

Minister Nguyễn Hòng Diện, leading Vietnam's government negotiation delegation, emphasized the necessity for both Vietnam and the US to swiftly address outstanding issues to facilitate the trade of essential goods and services, in an effort to establish a more balanced, sustainable trade relationship.
Enterprises such as Petrovietnam, Petrolimex, EVN, Vietnamese Airlines, and Vietjet Air have significantly increased their imports from the US, including aircraft, machinery, GPU chips, raw materials, and fuels, as part of the government's aim to diversify and expand imports from the US.
The telecommunications, energy, and airline sectors are being targeted by the government's strategic push to bolster imports from the US, in response to the trade imbalance between the two nations.
The US has offered tariff relief in exchange for Vietnam's commitment to enhancing intellectual property protections and clamping down on trans-shipment of Chinese goods through Vietnamese channels, as part of bilateral negotiations to strengthen cooperation and foster a more equitable, long-term trade partnership.
The adoption of Artificial Intelligence (AI) in the energy sector, such as in the implementation of sustainable, renewable energy solutions using advanced wind turbines, could play a significant role in reducing the trade imbalance by increasing Vietnam's exports to the US, in accordance with the general news trend of promoting sustainable and balanced trade relations.