Vietnam is actively reviewing import duties on U.S. goods, including liquefied natural gas (LNG), agricultural products, and high-tech equipment, as part of efforts to strengthen trade ties with the United States, Prime Minister Pham Minh Chinh told U.S. Ambassador Marc Knapper during a meeting on Thursday.
Balancing Trade Relations with the U.S.
As a major export-driven economy, Vietnam has a trade surplus with the U.S. exceeding $123 billion in 2024. In response to concerns about global trade imbalances and the potential for reciprocal tariffs under a Trump administration, Vietnam is taking proactive steps to facilitate U.S. exports.
According to a statement on the Vietnamese government’s website, Prime Minister Chinh emphasized that relevant ministries and agencies are working to adjust import tariffs, particularly on key U.S. products such as LNG, agricultural goods, and advanced technology.
Vietnamese Delegation in Washington for Trade Talks
To advance trade discussions, a Vietnamese delegation led by Trade Minister Nguyen Hong Dien is currently in the United States for high-level meetings with top U.S. trade and energy officials. The goal is to negotiate agreements that enhance bilateral trade and investment.
Vietnamese officials have repeatedly signaled their commitment to addressing U.S. trade concerns, including expediting business approvals for U.S. firms. Notably, Vietnam has pledged to fast-track licensing for Elon Musk’s Starlink satellite services, underscoring its openness to U.S. high-tech investments.
LNG Imports as a Key Focus
Increasing imports of U.S. LNG has been a recurring topic in trade discussions, with both Vietnamese and U.S. officials highlighting its potential to help balance bilateral trade flows. However, no long-term agreements have been finalized.
Vietnam’s LNG sector is still in its early stages, currently relying on short-term purchases of small shipments rather than the multi-year contracts preferred by U.S. suppliers. Establishing more structured LNG deals could enhance Vietnam’s energy security while contributing to trade balance adjustments.
Expanding Agricultural and High-Tech Imports
Vietnam has also expressed readiness to import more U.S. agricultural products, reinforcing commitments made by the Vietnamese Trade Minister in February. In 2023, agricultural goods accounted for over 25% of U.S. exports to Vietnam, totaling $3.4 billion, with key imports including cotton, soybeans, and tree nuts.
Additionally, Vietnam is eager to expand its imports of U.S. high-tech products, including AI-grade chips and semiconductors. However, restrictions imposed by the Biden administration limit Vietnam’s access to the most advanced semiconductor technologies, creating challenges for Vietnam’s ambitions to develop its tech sector.
Strengthening Vietnam-U.S. Economic Cooperation
With growing economic ties, Vietnam is positioning itself as a key trade and investment partner for the U.S.. By adjusting import policies, Vietnam aims to reduce trade imbalances and mitigate potential tariff risks, diversify energy imports to enhance energy security, attract more U.S. high-tech investments, strengthen agricultural trade partnerships
The ongoing trade discussions between Hanoi and Washington will play a crucial role in shaping future economic cooperation, ensuring a mutually beneficial and sustainable trade relationship between the two nations.
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Source: Vietnam Insider