US, Vietnam agree to start trade deal talks as tariffs pause, Hanoi says
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Vietnam is a major regional manufacturing base for many Western companies.
PHOTO: EPA-EFE
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HANOI – The US and Vietnam have agreed to start talks for a trade agreement, the Vietnamese government said on April 10, hours after the US paused the implementation of global “reciprocal” tariffs
The two countries will consider removing as many non-tariff barriers as possible, Hanoi said in a statement released after a meeting between Vietnamese Deputy Prime Minister Ho Duc Phoc and US Trade Representative Jamieson Greer in Washington.
Mr Greer acknowledged the meeting, noting in a post on social media platform X that the discussions with Mr Phoc covered “reciprocal trade and the vast economic opportunities in our bilateral relationship”.
Although the additional tariffs have been put on hold, a 10 per cent blanket duty on almost all US imports will remain in effect, the White House said.
“The Trump administration will continue to engage with our trading partners to address trade barriers and further @Potus’ America First trade policy,” he added, using the acronym for the president of the United States.
Vietnam, a major regional manufacturing base for many Western companies, in 2024 had a trade surplus of more than US$123 billion (S$164.8 billion) with the US, its largest export market.
The South-east Asian country will facilitate investment by US investors, the statement said, adding that it will also step up its fight against trade fraud.
Separately, on April 10, two Vietnamese airlines announced deals with US financial companies to fund their expansion.
Budget carrier Vietjet said it has signed a US$300 million deal with AV AirFinance, a partner of investment fund KKR.
It said the agreement will facilitate the delivery of planes it needs over the next two years. The company also said it will receive in 2025 the first Boeing 737 Max jets from an earlier order of 200 aircraft after delivery was postponed multiple times.
Vietnamese and US officials have said repeatedly that purchases of planes will be crucial to reducing Vietnam’s large surplus with the US, which the Trump administration has said is a key reason for the size of “reciprocal” tariffs initially imposed on Vietnam.
Earlier on April 10, flag carrier Vietnam Airlines announced a separate non-binding deal with Citibank worth more than US$560 million aimed at “strengthening the airline’s operational capacity and expanding its international route network in the years ahead”, it said in a press statement. REUTERS
