The Trade Deficit With Vietnam: An Inevitable Economic Outcome?

12 June, 2025

As part of his business trip to the United States, on June 9, in Washington, D.C., Minister of Industry and Trade Nguyen Hong Dien worked with Mr. Jeffrey Pearlman, Chairman of Warburg Pincus Investment Fund and Chairman of the US-ASEAN Business Council (USABC).

At the meeting, Minister Nguyen Hong Dien affirmed that the United States is one of Vietnam’s most important economic partners.

He emphasized the complementary nature of the economic relationship between the two countries, contributing to competitive advantages and promoting sustainable development, in line with Vietnam’s orientation to build an independent, self-reliant, and internationally integrated economy.

The Minister requested USABC and the US business community to continue supporting Vietnam in the process of negotiating a reciprocal trade agreement between the two countries. Along with that, coordinate to promote investment potential and business opportunities in Vietnam to US partners.

Minister Nguyen Hong Dien and Mr. Jeffrey Pearlman at the meeting on June 9. Photo: MOIT

On the USABC side, Mr. Jeffrey Pearlman expressed confidence in Vietnam’s economic development prospects and affirmed that Vietnam is Warburg Pincus’s second-largest market in Asia.

Warburg Pincus commits to long-term investment in Vietnam and will positively advocate for the country in promoting bilateral economic and trade relations.

In addition, Mr. Pearlman also said that he would soon work with Trade Minister Howard Lutnick, Finance Minister Scott Bessent, and US Trade Representative (USTR) Jamieson Greer to propose the following contents:

– USABC supports a balanced and harmonious trade agreement between Vietnam and the United States;

– The United States needs to strengthen cooperation with ASEAN – a region of strategic importance in US policy;

– The current trade deficit is a result of the law of development in the relationship between a developed economy like the United States and a developing economy like Vietnam, and it needs to be assessed objectively and comprehensively.

The two sides also discussed potential areas of cooperation such as energy, industry, digital transformation, green transition, logistics, and supply chain development. USABC commits to continue accompanying Vietnam in its efforts to maintain macroeconomic stability and sustainable development.

In the afternoon of the same day, Minister Nguyen Hong Dien had a working session with the leadership of the American Apparel & Footwear Association (AAFA) and leading US apparel and footwear companies such as GAP, Levis Strauss, Hanes Brands, and Under Armour…

The Minister affirmed that Vietnam is ready to be a reliable partner in the global supply chain and wishes to strengthen coordination to build a fair, resilient, and sustainable trading environment.

At the meetings, Minister Nguyen Hong Dien suggested that large US associations and corporations, with their strong influence, convey a message to the Trump administration to convey Vietnam’s message, which is: “The Vietnam-US Comprehensive Strategic Partnership has been and is strongly promoting and creating favorable conditions for US companies to invest and do business in Vietnam.

Therefore, cooperation with Vietnam will bring strategic benefits in the long term and contribute to improving the trade balance in a fair, harmonious, and sustainable manner between the two countries. Vietnam should be treated as a preferred trading partner of the United States.

Vietnam proposes that the United States work with Vietnam to resolve existing issues in economic and trade relations, soon recognize Vietnam as a market economy, and remove Vietnam from the D1, D3 lists that restrict the export of high-tech products. This will bring practical benefits to both countries in the short and long term.”

Tam An

– 21:58 10/06/2025