On May 22, Vietnam and the United States held discussions to advance trade negotiations aimed at enhancing economic cooperation.

The meeting included Vietnam’s Minister of Industry and Trade, Nguyen Hong Dien, and US Secretary of Commerce, Howard Lutnick.

Vietnam expressed its demand for high-tech and energy products from the US.

It also reiterated its commitment to a transparent trade environment.

Minister Nguyen urged the US to address existing trade issues, such as recognizing Vietnam as a market economy.

🔗 Source: Vietnam Times

🧠 Food for thought

1️⃣ From adversaries to partners: The remarkable transformation of US-Vietnam relations

The current trade negotiations represent the culmination of a dramatic diplomatic turnaround that began three decades ago.

After suffering approximately 3 million Vietnamese deaths and 58,000 American casualties during the Vietnam War, relations were completely severed until the 1990s, with the US imposing a trade embargo on Vietnam 1.

The normalization process began with cooperation on POW/MIA issues, leading to President Clinton establishing full diplomatic relations on July 11, 1995, followed by the opening of embassies in both countries 23.

The 2000 Bilateral Trade Agreement marked a pivotal economic breakthrough, reducing tariffs from an average of 40% to 3% on many goods and helping Vietnam gain WTO membership in 2007 14.

This foundation has enabled bilateral trade to surge from just $900 million in 1999 to approximately $149.6 billion in 2024, transforming Vietnam into a significant US trading partner despite their difficult history 45.

The current negotiations for a “bilateral agreement on reciprocal trade” represent the next stage in this evolving relationship, addressing persistent challenges like Vietnam’s non-market economy status and restrictions on high-tech exports.

2️⃣ The persistent trade imbalance challenging bilateral relations

The growing trade deficit remains a central challenge in US-Vietnam economic relations, with recent data showing the imbalance reached $123.5 billion in 2024, an 18.1% increase from the previous year 65.