The United States and Vietnam have agreed to initiate discussions for a trade agreement, the Vietnamese government announced on Thursday, 10th Paril, 2025. This development comes just hours after the U.S. paused the implementation of global “reciprocal” tariffs, including a significant 46% levy on Vietnamese imports. According to a statement from Hanoi, both nations aim to remove as many non-tariff barriers as possible. This decision was reached following a meeting in Washington between Vietnam’s Deputy Prime Minister Ho Duc Phoc and U.S. Trade Representative Jamieson Greer.
The U.S. Trade Representative confirmed the meeting, stating in a social media post on platform X that discussions with Phoc addressed “reciprocal trade and the vast economic opportunities in our bilateral relationship.”
While the additional tariffs have been temporarily suspended, the White House noted that a 10% blanket duty on nearly all U.S. imports will remain in place. “The Trump administration will continue to engage with our trading partners to address trade barriers and further @POTUS’ America First Trade Policy,” the U.S. Trade Representative added, using the acronym for the President of the United States. Vietnam, a key manufacturing hub for Western companies, recorded a trade surplus of over $123 billion with the U.S. last year, making the United States its largest export market. In the same statement, Vietnam indicated that it would facilitate investment opportunities for U.S. investors and intensify efforts to combat trade fraud.
Vietnamese Airlines Secure Major U.S. Investment Deals
In a related development on Thursday, two Vietnamese airlines announced investment agreements with U.S. financial firms to support their expansion plans.
Low-cost carrier Vietjet revealed a $300 million financing deal with AV AirFinance, an affiliate of investment giant KKR. The agreement is set to ensure the timely delivery of aircraft over the next two years. Vietjet also confirmed that it would begin receiving Boeing 737 Max jets this year from a previously postponed order of 200 aircraft. Vietnamese and U.S. officials have frequently emphasized the importance of aircraft purchases in addressing Vietnam’s large trade surplus with the United States. The Trump administration has cited this surplus as a key factor in imposing the now-paused “reciprocal” tariffs.
Separately, Vietnam Airlines announced a non-binding agreement with Citibank valued at over $560 million. This deal is aimed at “strengthening the airline’s operational capacity and expanding its international route network in the years ahead,” according to a company press statement.
These latest developments signal a strengthening of economic ties between the U.S. and Vietnam, even as broader trade discussions continue to shape future policies between the two nations.
