Vietnam–U.S. Reciprocal Trade Agreement: Latest Progress and What Leaders Are Saying

Vietnam and the United States say negotiations on a reciprocal, fair and balanced trade agreement are progressing, with both sides reporting positive results and signaling continued cooperation to finalize the deal. The discussions are part of a broader effort to stabilize bilateral trade relations and expand market access following the October 2025 framework agreement between the two countries.

Recent progress in negotiations

During a meeting in Hanoi on May 20, 2026, Vietnamese Prime Minister Le Minh Hung welcomed what he described as “positive results” achieved in negotiations with the United States. The comments came during talks with Rick Switzer, U.S. Deputy Trade Representative, who was visiting Vietnam to discuss the agreement.

Vietnam’s government said it will continue close coordination with the United States to finalize the bilateral trade pact. The agreement aims to deepen economic ties between the two countries while addressing trade imbalances and market‑access issues.

Negotiations have involved multiple rounds of discussions covering areas such as services, agriculture, digital trade, and technical trade barriers.

Vietnam’s message: complementary economies and market‑based businesses

Prime Minister Hung emphasized that Vietnam and the United States have complementary, rather than competing, economic structures, suggesting that stronger trade integration could benefit both sides.

He also stressed that Vietnamese enterprises operate according to market mechanisms, addressing concerns sometimes raised in trade disputes about state influence in the economy.

At the same meeting, Hung made a clear statement about industrial policy: Vietnam does not pursue a policy of creating excess production capacity, a topic that has been sensitive in global trade debates.

Vietnam also signaled willingness to address key trade concerns often raised by U.S. negotiators, including:

• Strengthening intellectual property protection
• Tackling issues related to forced labor in supply chains

These areas are frequently part of modern trade negotiations and are linked to market‑access commitments and regulatory standards.

The U.S. position: continued cooperation

U.S. Deputy Trade Representative Rick Switzer conveyed that Washington intends to continue working with Vietnam to advance bilateral trade ties and move toward completing the agreement.

Both sides framed the negotiations as part of a broader effort to strengthen economic cooperation under the countries’ growing strategic partnership.

How the talks connect to the 2025 trade framework

The current negotiations build directly on a framework for a Vietnam–U.S. “Reciprocal, Fair and Balanced Trade” agreement announced on October 26, 2025.

That framework was designed to:

• Expand market access for exporters in both countries
• Strengthen the bilateral economic relationship
• Establish the structure for negotiating tariffs, market access, and regulatory cooperation.

Some analyses of the framework indicated that the United States could maintain reciprocal tariffs on certain Vietnamese goods—around 20% in baseline cases—while granting exemptions or lower rates for specific products.

The tariff backdrop driving negotiations

The push for a formal agreement also follows earlier U.S. tariff proposals on Vietnamese exports, which triggered negotiations aimed at preventing escalation and stabilizing trade relations.

Vietnam’s government has sought a negotiated solution that preserves access to the U.S. market—its largest export destination—while addressing Washington’s concerns about trade practices and supply‑chain standards.

What comes next

Although negotiators say progress has been made, the final terms of a reciprocal trade agreement have not yet been completed. Both governments say they will continue coordinating closely to conclude the deal.

If finalized, the agreement would represent the next major step in U.S.–Vietnam economic relations, building on decades of expanding trade since the 2000 bilateral trade agreement that entered into force in 2001.

For businesses and policymakers, the outcome could shape tariffs, market access, and regulatory cooperation between two of the Indo‑Pacific’s most closely linked trading partners.