“US-Vietnam Trade Agreement: A Mutually Beneficial Partnership”

15 May, 2025

Prime Minister Pham Minh Chinh meets with representatives of American businesses investing and operating in Vietnam.
Photo: VGP/Nhat Bac

Present at the meeting were Deputy Prime Ministers Ho Duc Phoc and Nguyen Chi Dung; representatives of Vietnamese ministries, sectors, and localities; representatives from the US Embassy in Vietnam, the American Chamber of Commerce in Hanoi, and 50 major American businesses investing and operating in Vietnam.

This was the second meeting between Prime Minister Pham Minh Chinh and American businesses within just two months, demonstrating the Vietnamese government’s high regard for businesses and its willingness to engage in open and frank discussions, actively listening to constructive feedback from American partners to address challenges and create the most favorable conditions for the American business community to continue investing, expanding, and succeeding in Vietnam.

American Businesses Appreciate Vietnam’s Goodwill

After 30 years of establishing diplomatic relations, 10 years of comprehensive partnership, and 2 years of upgraded relations to a comprehensive strategic partnership, Vietnam-US relations have been developing positively in all fields. Economic, trade, and investment are important pillars driving the overall bilateral relationship.

Bilateral trade reached 134.6 billion USD in 2024. By the end of 2024, US direct investment in Vietnam was estimated at nearly 12 billion USD with over 1,400 projects. Almost all major US corporations have established a presence and invested effectively in Vietnam, while many Vietnamese businesses have also invested in the US market. Vietnam has 252 investment projects in the US, with a total investment of nearly 1.4 billion USD, ranking 6th out of 83 overseas investment destinations. Vietnam is the 8th largest trading partner and the 4th largest export market for the US in the ASEAN region.

The meeting aimed to listen and find solutions to promote Vietnam-US investment and business cooperation.
Photo: VGP/Nhat Bac

At the meeting, representatives from the US Embassy in Vietnam, the American Chamber of Commerce in Hanoi, and major US businesses such as Boeing, Molex, Excelerate Energy, Abbott, Coca-Cola, and GE Vernova appreciated the Vietnamese government’s goodwill in regularly organizing meetings and listening to the business community to remove bottlenecks and promote Vietnam-US trade and investment cooperation. Thanks to these efforts, economic, trade, and investment cooperation has become the cornerstone of the relationship between the two countries, with Vietnam becoming one of the largest partners of the US.

American businesses highly valued Vietnam’s investment and business environment, especially the government’s continued efforts to create a more favorable environment, aiming to eliminate at least 30% of unnecessary investment and business conditions, reduce at least 30% of time for administrative procedures, and cut at least 30% of costs related to administrative procedures. The government has also proactively addressed difficulties and created maximum favorable conditions for businesses in production and operations.

Recently, Vietnam has been very proactive and active in promoting balanced and sustainable investment and trade cooperation with the US, including increasing imports of goods in which the US has strengths and Vietnam has demands, reducing import tariffs on goods from the US, and resolving bottlenecks for US projects in Vietnam.

Prime Minister Pham Minh Chinh and Deputy Prime Ministers Ho Duc Phoc and Nguyen Chi Dung at the meeting.
Photo: VGP/Nhat Bac

The US side suggested that Vietnam continue to improve the investment and business environment, resolve some bottlenecks, and create the most favorable conditions for businesses in production and operations, especially in administrative procedures, non-tariff barriers, and issues related to taxes, fees, and charges. They also proposed ensuring necessary infrastructure such as electricity and information technology infrastructure and logistics, enhancing management and supervision of businesses to ensure transparency and origin traceability, and requested Vietnamese partners to promptly implement signed Memoranda of Understanding (MOUs). They also raised some issues related to specific projects. The American businesses expressed their sympathy for Vietnam’s difficulties and pledged to cooperate for sustainable and long-term investment, accompanying Vietnam in its development journey.

Concrete Actions by Vietnam to Promote Balanced and Sustainable Trade with the US

Together with the leaders of ministries, sectors, and localities, Prime Minister Pham Minh Chinh provided answers, guidance, and immediate and thorough solutions to the reflections, suggestions, and legitimate proposals of the American businesses. He affirmed that Vietnam has been very proactive and active in promoting balanced and sustainable economic and trade relations with the US.

The Prime Minister expressed his hope that the US side would continue to sympathize with Vietnam, a country that has suffered tremendous losses, pain, and severe consequences from the prolonged war. Even today, unexploded ordnance left over from the war continues to explode and cause harm to people’s lives. Vietnam is also a developing country that has gone through a long period of blockade and embargo and is in the process of economic transition, with a modest economic scale and limited resilience to external shocks.

Chairman of the American Chamber of Commerce in Hanoi gives a speech.
Photo: VGP/Nhat Bac

Sharing the outstanding results in trade and investment relations between the two countries, in which many large US businesses have built strong ecosystems in Vietnam, Prime Minister Pham Minh Chinh affirmed that the Vietnamese government is always ready to engage in dialogue with partners and businesses, including American partners and businesses, in an effective, frank, constructive, and respectful manner, bringing results and benefits to both sides.

The Prime Minister emphasized Vietnam’s concrete actions in promoting balanced and sustainable trade development with the US, including proactively addressing US concerns and those of American businesses, resolutely fighting trade fraud, smuggling, and counterfeit goods, and actively reforming administrative procedures and eliminating unnecessary investment and business conditions. Vietnam has also reduced the time and costs related to administrative procedures for people and businesses.

Along with Vietnam’s efforts and the spirit of “saying and doing,” and “committing and implementing,” the Prime Minister suggested that the American business community and the US Embassy speak positively to the Trump administration about Vietnam’s efforts and goodwill. He hoped that the US would adopt the best possible solutions to promote balanced and sustainable trade cooperation with Vietnam, in the spirit of mutual benefit, harmonizing interests, and sharing risks. The two sides should soon reach an agreement on tariffs that is beneficial in the short and long term for both countries, for the people and businesses of both countries, and for the two nations. He also suggested supporting businesses on both sides to continue developing, as they have experience in overcoming past difficulties and challenges.

Sharing the broad outlines of Vietnam’s situation, Prime Minister Pham Minh Chinh expressed his appreciation for the US’s support for a strong, independent, self-reliant, and prosperous Vietnam. Vietnam consistently upholds the view of putting the past behind, focusing on commonalities, limiting differences, and looking toward the future, effectively implementing commitments to promote the comprehensive strategic partnership between Vietnam and the US in a practical and effective manner in all fields, including trade, contributing to a peaceful, dialogue-oriented, and cooperative Vietnam that is ready to listen and address concerns with partners through open discussions and negotiations.

Prime Minister Pham Minh Chinh emphasized that Vietnam has proactively addressed US concerns and those of American businesses.
Photo: VGP/Nhat Bac

Hoping for Progress in US-China Trade Negotiations, Benefiting Both Sides and Other Countries

Sharing Vietnam’s perspective on the trade negotiations between the US and China, the Prime Minister said that the current world situation is witnessing many changes, requiring each country to have appropriate adaptive solutions.

Vietnam does not interfere in the internal affairs of other countries and hopes for the development and prosperity of all nations, for stability, peace, cooperation, and development in the region and the world. Vietnam especially hopes for no trade wars, especially between large economies like the US and China. Vietnam hopes that countries will promote cooperative relations based on rules and international commitments, the UN Charter, and in a way that does not affect other countries. Vietnam hopes for progress in US-China trade negotiations, with agreements that benefit both sides and other countries worldwide.

The Prime Minister said that in the face of difficulties related to global trade tensions, Vietnam remains calm and proactive, not falling into despair or complacency. Vietnam is building an independent and self-reliant economy, closely associated with proactive, active, and effective international integration, relying mainly on internal resources, which are strategic and long-term, and on external resources, which are important and breakthrough-creating.

Emphasizing the spirit of self-reliance and self-improvement, Vietnam considers this a opportunity to restructure its economy for rapid and sustainable development, and to restructure trade toward balance and sustainability with all partners, based on mutual benefit and non-interference in the affairs of third countries. Vietnam is promoting market, product, and supply chain diversification.

Prime Minister Pham Minh Chinh affirmed that the Vietnamese government is always ready to engage in dialogue with partners and businesses, including American partners and businesses.
Photo: VGP/Nhat Bac

Vietnam is implementing a “strategic quartet” on breakthroughs in science, technology, innovation, and national digital transformation, on international integration in the new situation, on law building and enforcement, and on private economic development. Vietnam is also developing a project to build an international financial center, implementing three strategic breakthroughs, especially in transport infrastructure, energy infrastructure, with a focus on institutional reform, infrastructure development, and smart human resources.

Placing people and businesses at the center, as the subject, resource, and driving force of development, Vietnam is building a two-tier local government system, transforming the public administration from a passive to a proactive mode, serving people and businesses, establishing administrative service centers, promoting digital transformation, and performing procedures on digital platforms without administrative boundaries, thereby better serving people and businesses.

Minister of Industry and Trade Nguyen Hong Dien speaks at the meeting.
Photo: VGP/Nhat Bac

Prime Minister Pham Minh Chinh affirmed the viewpoint of “the Government as a builder; people and businesses as the center; institutions as the momentum; and infrastructure as the foundation” to “listen and understand together; share vision and act together; do, benefit, and win together.” The Vietnamese government creates all favorable conditions and protects the legitimate rights and interests of businesses, including American businesses, so that they can cooperate, invest, and operate effectively and sustainably in Vietnam.

The Prime Minister informed that Vietnam has implemented and will continue to reform its visa policy for foreign citizens entering Vietnam, including US citizens, and hoped that the US government would consider and implement a favorable visa policy for Vietnamese citizens.

By Huy Khai

– 17:54 13/05/2025