The BGA Vietnam Team, led by Managing Director Nguyen Viet Ha, wrote a client update on the new development of trade negotiations between Vietnam and the United States.

Context

  • This update is the latest in a series highlighting new developments in Vietnam’s trade space following U.S. President Donald Trump’s announcement of “reciprocal tariffs” in early April. BGA tariff trackers provide an analysis of negotiations, new agreements, government and business engagements and policy responses to keep clients abreast of the evolving trade landscape and enable informed, proactive decision-making.
  • Prime Minister Pham Minh Chinh chaired a government meeting to review the results of the second round of tariff negotiations May 24. He acknowledged positive progress, noting that both sides had reached a consensus on several issues while identifying areas that still require further discussion. He urged the negotiation team to continue working toward a swift agreement with the United States that benefits both countries. Details of the discussions remain strictly confidential, though some sources suggest that outstanding issues may involve concerns related to transshipment and defense procurement.


Significance

  • A bipartisan delegation from the U.S. House of Representatives, led by Rep. John Moolenaar (Republican from Michigan), met with senior leaders of Vietnam’s Communist Party, government and National Assembly May 28 during its visit to Hanoi. In the meetings, Vietnamese leaders called on the Washington to adopt a more balanced approach toward Vietnam to foster sustainable trade relations that benefit the citizens of both countries. They also urged the United States to consider Vietnam’s specific conditions during the tariff negotiations, remove Vietnam from the strategic export control list and advance the process of recognizing Vietnam’s market economy status. Moolenaar and the delegation pledged to support the strengthening of bilateral relations and cooperation, including in economic and trade matters and ongoing tariff negotiations. Moolenaar serves as chairman of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party.
  • Vietnam continues to enhance its legal framework for controlling origins of goods. The Foreign Trade Management Department of the Ministry of Industry and Trade held a consultative workshop May 23 on the draft decree replacing Decree No. 31/2018/ND-CP on the origin of goods. This draft decree aims to revise regulations on origin certification to streamline procedures for exporters, enhance import controls and eliminate origin fraud. The Ministry of Industry and Trade reiterated its commitment to ensuring that the decree supports business activities, enables enterprises to benefit from free trade agreements and prevents origin fraud. The draft decree is expected to be submitted to the government by the end of May, aiming for a fast-track issuance in June with immediate effect.

Implications

  • The third round of bilateral trade negotiations between Vietnam and the United States is set to take place from June 2-11, with Minister of Industry and Trade Nguyen Hong Dien leading the Vietnamese delegation in Washington, D.C. The minister will also attend meetings between Vietnamese companies and potential U.S. suppliers.
  • Vietnam Customs is prioritizing the clearance of agricultural, forestry and fishery exports. The agency has instructed its units to expedite the processing of these products — particularly durian and other perishable goods — while keeping exporters informed about the import and tariff policies of destination countries and resolving issues related to export procedures. The directive aligns with Prime Minister’s Official Letter No. 59/CD-TTg dated May 8, which emphasizes ensuring the production, consumption and export of agricultural, forestry and fishery products amid ongoing global trade fluctuations.

We will continue to keep you updated on tariff-related developments in Vietnam If you have any comments or questions, please contact BGA Vietnam Managing Director Nguyen Viet Ha at vietha@bowergroupasia.com.

Best regards,

BGA Vietnam Team

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Managing Director

Ha is a highly respected Vietnamese lawyer, with special expertise in financial transactions, mergers and acquisitions, as well as general business, trade and investment-related issues. Before joining BGA as managing director for Vietnam, Ha managed the Vietnam operations of BrooksBowerAsia for three years. She built and led the Vietnam team and serviced clients in various sectors ranging from energy and ICT to healthcare, logistics and consumer production. Ha practiced law in Vietnam in the 1990s, providing legal advice and consulting services to Fortune 500 clients. She also participated in drafting a number of laws and regulations, including the Foreign Investment ... Read More