Việt Nam and the US recently issued a Joint Statement on the Framework of the Reciprocal, Fair and Balanced Trade Agreement on the occasion of President Donald Trump and Prime Minister Phạm Minh Chính attending the ASEAN Summit, held in Kuala Lumpur, Malaysia, from October 26 to 28.

Vietnam News Agency interviewed Dr Bùi Quý Thuấn, head of the research department of the Vietnam Industrial Park Finance Association (VIPFA), about the significance and impact of this Joint Statement on the bilateral relationship between the two countries, as well as its role in enhancing Việt Nam’s position and affirming the country’s responsibility as a trusted partner in the global supply chain.

What is the significance of the Joint Statement on a US-Việt Nam Framework for an Agreement on Reciprocal, Fair and Balanced Trade in strengthening bilateral economic relations?

The Joint Statement on a US-Việt Nam Framework for an Agreement on Reciprocal, Fair and Balanced Trade is a strategic turning point. It marks a success for Việt Nam in the process of negotiating reciprocal tariffs with the US, as well as the country’s consistent diplomatic approach in the current complex geopolitical context.

This statement establishes an important legal framework that ensures fairness in the economic partnership between Việt Nam and the US, moving towards a long-term, mutually beneficial cooperation framework in line with the comprehensive strategic partnership between the two nations. This creates stability, trust and predictability for businesses and investors from both countries in their investment and business activities.

The statement also highlights that, rather than just regular trade exchanges, the two countries can cooperate to resolve core issues such as market transparency, intellectual property protection and promoting sustainable development. This lays the foundation for expanding cooperation into new areas of mutual interest such as high technology, energy and the digital economy.

The Joint Statement on a US-Việt Nam Framework for an Agreement on Reciprocal, Fair and Balanced Trade will help elevate the economic and trade relationship to a strategic level and build the trust necessary for a comprehensive trade agreement between Việt Nam and the US in the future.

According to the Joint Statement, the US will maintain the reciprocal tariff rate of 20 per cent for goods originating from Việt Nam, as stipulated in Executive Order 14257, dated April 2 this year, and subsequent amendments.

Concurrently, the US will identify products listed in Annex III of Executive Order 14356, dated September 5 this year, titled 'Potential Tariff Adjustments for Aligned Partners' to benefit from a 0 per cent reciprocal tariff rate. What is the significance of this for Việt Nam?

The US decision to identify products in the list provided in Annex III of Executive Order 14356, dated September 5, titled "Potential Tariff Adjustments for Aligned Partners" to benefit from a reciprocal tariff rate of 0 per cent is very significant for Việt Nam. It means that Việt Nam’s key export products will benefit from a 0 per cent tariff rate, which is a major advantage.

This shows that the US sees Việt Nam as an aligned partner in economic relations, aligning with the comprehensive strategic partnership between the two countries. Legally, the recognition of Việt Nam as an aligned partner is not just a favour but an official acknowledgement by the US that Việt Nam has become an 'aligned' trade partner.

Economically, this statement will strengthen Việt Nam’s position in the global supply chain. With a 0 per cent tariff, Vietnamese goods will become more competitive in the US market, while the country will become a more attractive and stable investment destination for investors seeking to diversify their supply chains. Investors will be more confident in setting up manufacturing facilities in Việt Nam, which will lead to a wave of high-quality foreign direct investment (FDI) from the US and Europe in the near future.

Can you explain the significance of this Joint Statement in helping Việt Nam enhance its trade negotiation position and gradually affirm its role as a trusted, responsible partner in the global supply chain?

The Joint Statement on a US-Việt Nam Framework for an Agreement on Reciprocal, Fair and Balanced Trade is a very important step in trade negotiations with the US. It demonstrates that Việt Nam’s economic diplomacy has reached a new level. At the same time, it strengthens Việt Nam’s negotiating position and boosts confidence in further detailed negotiations.

Moreover, this statement allows Việt Nam to proactively shape a new economic relationship framework with the US, particularly in the context of bilateral trade exchanges, aligning with Việt Nam’s new strategic orientation and economic policies as the country enters a new era of development.

Through this statement, Việt Nam affirms its role as a trusted and responsible partner to the US in adhering to global standards such as transparency and institutional reforms to meet and comply with international trade rules. This will strengthen Việt Nam’s position, improve its competitiveness and affirm its image as an active, reliable and responsible partner in the new global economic order. — VNS