US-Vietnam Forge New Trade Pact to Strengthen Export Control Cooperation

The United States and Vietnam have finalised a comprehensive trade framework designed to significantly deepen their economic partnership, the White House announced on 26 October.

In an official statement, the White House said the 'Framework for an Agreement on Reciprocal, Fair, and Balanced Trade' builds upon longstanding bilateral cooperation, notably the US-Vietnam Bilateral Trade Agreement signed in 2000 and implemented in 2001.

The new framework aims to consolidate economic and trade relations while providing what it describes as 'unprecedented market access opportunities' for exporters from both nations.

Key elements of the agreement, as detailed in the statement, include:

I. Market Access and Reciprocal Tariff Arrangements

Vietnam has committed to granting preferential market access to virtually all US industrial and agricultural products. In turn, the United States will maintain a reciprocal tariff of 20% on goods from Vietnam, as stipulated in Executive Order 14257 of 2 April 2025 and its amendments. Concurrently, certain Vietnamese goods will benefit from zero-tariff treatment under Annex III of Executive Order 14346, issued on 5 September 2025.

II. Non-Tariff Barriers and Regulatory Coordination

Both nations have pledged to address non-tariff barriers constructively. Vietnam has agreed to several specific measures, including accepting US vehicles that comply with American safety and emissions standards, improving its medical device import licensing system, and streamlining pharmaceutical registration procedures. It will also implement obligations under international intellectual property treaties and address US concerns regarding conformity assessments.

III. Agricultural Trade Arrangements

The framework commits both parties to preventing and eliminating barriers for US agricultural products in the Vietnamese market. Vietnam will recognise relevant inspection certificates issued by US authorities and work towards the mutual recognition of regulatory standards.

IV. Digital Trade, Services and Investment

The pact includes commitments to foster more open and transparent market cooperation in the areas of digital trade, services, and investment.

V. Intellectual Property, Labour and Environment

Cooperation is also planned on intellectual property protection, labour standards, environmental policies, trade facilitation, good regulatory practices, and ensuring competitive neutrality for state-owned enterprises.

VI. Supply Chain and Export Control Cooperation

The two countries have committed to strengthening cooperation to enhance supply chain resilience, including efforts to address tariff evasion and collaborate on export controls.

VII. Commercial Agreements

The White House statement also highlighted several recently concluded commercial deals, including a commitment from Vietnam Airlines to purchase 50 Boeing aircraft at a total value of over $8 billion. Additionally, multiple Vietnamese enterprises signed 20 memoranda of understanding with US companies to procure approximately $2.9 billion worth of American agricultural products.

According to the announcement, negotiators from both sides will continue finalising the agreement text in the coming weeks and complete preparatory work for its signing. The respective domestic approval procedures will then be undertaken to pave the way for the agreement's formal entry into force.