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 the proclamation of U.S. President Donald Trump’s “America First” trade policy in January and the 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 met with representatives from the U.S. Embassy, US-ASEAN Business Council and American Chamber of Commerce May 13 to discuss Vietnam- U.S. tariff negotiations and the challenges faced by U.S. businesses. Forty participants from the U.S. business community in Vietnam highlighted challenges they face such as taxes, fees, lack of infrastructure, administrative procedures and market access. The prime minister confirmed the government’s commitment to reform the administrative system, improve the business environment and facilitate U.S. businesses. He urged U.S. companies to communicate Vietnam’s efforts to the U.S. administration to achieve the best negotiation outcomes.

Significance

  • Deputy Prime Minister Tran Hong Ha approved a $1.5 billion investment project in Hung Yen province May 16. Proposed by a consortium of Hung Yen Investment and Development Group Joint Stock Company and IDG Capital — a representative of Trump Organization, this project includes a golf course, eco-tourism sites and a residential complex. The approval comes ahead of the visit by Eric Trump, President Donald Trump’s son, to Vietnam in the third week of May, when he is also expected to scout for the location for a new Trump Tower in Ho Chi Minh City.
  • Vietnam is intensifying efforts against counterfeit products and digital piracy to address U.S. concerns about illegal trade and fraud. Increased border inspections will target luxury goods, electronics, toys and personal care items.The Ministry of Culture, Sports and Tourism is also clamping down on counterfeit software following complaints from the Business Software Alliance. The U.S. Trade Representative praised Vietnam’s actions but voiced concerns about the online sale of counterfeit goods.

Implications

  • Import-export situation: Vietnam increased purchases from the United States 40.2 percent compared to April 2024, according to the Customs Department. Computers, electronic products and components are among the leading categories of goods by import value, with more than $1.8 billion, reflecting a year-on-year increase of 58.3 percent. Many businesses operating in key export sectors such as textiles, furniture and aquatic products reported slight increases in orders year over year.
  • Currency fluctuation: The U.S. dollar fell against the Vietnamese dong May 15 to its lowest point since April 22, following the U.S.-China agreement three days earlier to lower reciprocal tariffs for 90 days. Vietcombank sold the dong 0.04 percent lower at VND 26,120, while the State Bank of Vietnam lowered its reference rate 0.01 percent to VND 25,970.

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