Key Takeaways:

• Vietnam's trade officials are meeting with US representatives to discuss potential tariffs imposed by the Trump administration.
• The US ran a substantial $123.5 billion trade deficit with Vietnam in 2024, making it a focal point as tariffs loom.
• Vietnam aims to improve its trade balance and is reviewing import duties on US products, including agricultural items and liquefied natural gas.

Vietnam’s top trade official, Nguyen Hong Dien, has embarked on a significant visit to the United States, aiming to foster bilateral trade relations and mitigate tariff threats under the Trump administration. This journey is crucial as anxiety over a potential trade confrontation mounts, with Vietnam facing a substantial trade deficit amounting to $123.5 billion in 2024, the third-largest for the US behind China and Mexico.

During a recent meeting in Washington, Dien discussed with US Trade Representative Jamieson Greer the need to enhance Vietnam's trade balance and open its markets further. According to the Ministry of Industry and Trade, the Vietnamese government is focused on crafting a sustainable and harmonious economic relationship with the US while addressing key concerns related to trade policies. "Vietnam is implementing measures to foster sustainable economic, trade, and investment relations," Dien emphasized to Greer, highlighting the necessity of removing barriers for American companies.

The discussions are particularly pressing as Vietnam overtook Japan in 2024, becoming China’s third-largest export destination. This shift places Vietnam at the epicenter of the ongoing economic tensions between the US and China. Prime Minister Pham Minh Chinh also reaffirmed Vietnam's commitment to the US relations during a conversation with US Ambassador Marc Knapper, indicating a review of import tariffs on American products to encourage increased trade, with a focus on liquefied natural gas and agricultural items.

As Vietnam seeks to solidify its standing amidst the global economic landscape, officials are keen to reassess duties on US goods to ensure a more favorable trade environment. The nation's robust export-driven economy now faces the dual challenge of maintaining strong ties with both the US and China.

For more information, see the full article at SCMP.