Vietnam sends technical delegation to US for trade, tariff talks

Hung recently told Tuoi Tre (Youth) newspaper that Vietnam is among a select group of countries prioritized by the U.S. for negotiations, alongside India, the U.K., Japan, South Korea, and Indonesia.

This move comes in the wake of the U.S. government's April 3 announcement of a new global tariff policy, which imposes higher duties on trade partners with significant trade surpluses with the U.S., including Vietnam, which now faces a 46-percent tariff rate.

These high tariffs were initially set to take effect on April 9 but were delayed for 90 days starting from that date by the U.S. to allow time for trade negotiations.

Hung noted that the USTR has taken Vietnam's proposal for high-level bilateral meetings seriously, and both sides have agreed to initiate the negotiation process.

He confirmed that the Vietnam Trade Office is actively working with the delegation to arrange the first discussions on reciprocal tariffs.

Regarding the outlook for the talks, Hung said the U.S. side has shown signs of goodwill and seriousness.

The negotiations officially began following a phone call on April 23 between Vietnamese Minister of Industry and Trade Nguyen Hong Dien and USTR Jamieson Greer.

Just one day after the call, the USTR published a press release on its website detailing the discussion, which Greer described as 'productive.'

This indicates that the U.S. regards Vietnam as an important, serious, and cooperative partner, leading to Vietnam's inclusion in the group of countries prioritized for discussions with the U.S., Hung said.

Positive signals from U.S. businesses

Hung noted that many major U.S. companies have expressed support for Vietnam and confidence that the two countries can reach an agreement to lift the high reciprocal tariffs.

Some American firms are also considering participating in the Vietnam International Sourcing Expo 2025, scheduled for September in Vietnam and organized by the Ministry of Industry and Trade.

Hung stated that during discussions with U.S. President Donald Trump, several major U.S. consumer goods retailers – including Walmart, Target, Costco, and Home Depot – expressed concerns that current tariff policies are dampening consumer sentiment and driving up prices.

Ongoing trade and economic uncertainty has made American consumers more cautious in their spending, which is already affecting business performance, the companies cautioned.

They also projected that if the situation persists for even a few more weeks, store shelves could begin to empty.

Recommendations from Vietnam Trade Office

As head of the Vietnam Trade Office in the U.S., Hung recommended that the government intensify diplomatic efforts and trade negotiations to resolve issues related to reciprocal tariffs, while maintaining a clear roadmap to safeguard Vietnam's trade interests against potential U.S. measures.

He also stressed the importance of strengthening strategic cooperation with the U.S. to ensure long-term growth in bilateral ties across key sectors such as industry, trade, investment, energy, and AI.

Hung said diversifying export markets through free trade agreements (FTA), especially next-generation FTAs, will be essential. At the same time, stimulating domestic demand through policies that promote consumption could help offset the impact of declining exports.

He urged Vietnamese businesses to enhance their competitiveness by investing in supporting industries, adopting advanced technologies, upgrading equipment, and fostering innovation.

Simplifying business regulations and improving infrastructure would further help reduce production costs and enhance product quality, particularly for exports, he added.