• The U.S. made a long list of tough requests aimed at reducing Vietnam's reliance on Chinese imports during trade talks.
• Vietnam has responded positively to U.S. trade requests, emphasizing goodwill in negotiations.
• Western trade tariffs could threaten Vietnam's economic model based on exports to the U.S.
• Vietnam's exports to the U.S. have surged, but so have imports from China, raising concerns about trade practices.
• Upcoming negotiations are set to continue as Vietnam and the U.S. seek to finalize trade agreements.

The U.S. has communicated a "long" list of "tough" requests to Vietnam during ongoing tariff negotiations, aiming to reduce the Southeast Asian nation's reliance on Chinese industrial goods imports. The list, described as part of an annex to a framework text prepared by U.S. negotiators, was sent to Vietnam towards the end of May, following two rounds of discussions focused on avoiding 46% "reciprocal" tariffs on imports from Vietnam, according to Reuters and South China Morning Post.

Vietnam’s Ministry of Industry and Trade, expressing its "determination and goodwill," has announced that the country submitted its response to U.S. requests. While specifics of Vietnam's proposal were not disclosed, the ongoing communications highlight the importance of the trade relationship, particularly as Vietnam faces potential punitive tariffs that could undermine its export-driven economy, as reported by Channel News Asia.

Over recent years, Vietnam has significantly increased its exports to the U.S., nearly tripling since the onset of the U.S.-China trade war in 2018. Nevertheless, imports from China have also surged, with both exports to the U.S. and imports from China averaging around $140 billion annually, according to data from the U.S. and Vietnam, as mentioned by Reuters and South China Morning Post.

U.S. officials have accused Vietnam of serving as a transshipment point for Chinese goods sold in the U.S., with some products labeled as “Made in Vietnam” despite lacking significant local production value. In response to ongoing criticism, Vietnam has begun cracking down on such practices; however, the effectiveness of these measures remains uncertain as trade levels continue to rise, reports South China Morning Post.

As discussions remain active, the Vietnamese Trade Minister and the U.S. Trade Representative met recently in Paris, agreeing to intensify efforts ahead of the next negotiation round scheduled for next week. Both parties are keen to reach a mutually beneficial agreement, reflecting the importance of this trade relationship for Vietnam’s economy, according to Channel News Asia.