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.
  • Vietnamese and U.S. officials held their second round of negotiations from May 19-22 in Washington, D.C. Led by Minister of Industry and Trade Nguyen Hong Dien, the Vietnamese delegation included representatives from various ministries and sectors. Over three days, both parties discussed current policies, key terms of the potential agreement and a joint approach to mutual concerns to expedite negotiations. Reports from Vietnam indicate progress on establishing a consensus and resolving controversies. The next round is scheduled for early June.

Significance

  • A delegation from Vietnam’s Ministry of Finance led by Deputy Director-General of the Customs Department Au Anh Tuan met with U.S. Customs and Border Protection officials in Washington to discuss preventing illegal transshipments through Vietnam to evade U.S. import duties. Vietnamese official said they plan to boost domestic production to reduce dependence on imported materials. U.S. officials expressed interest in signing a memorandum of understanding for the Foreign Electronic Data Exchange Program and agreed to hold technical meetings to address issues. Vietnam also supports implementing the Container Security Initiative at Cai Mep-Thi Vai and Lach Huyen ports.
  • U.S. President Donald Trump announced May 15 that trading partners would receive letters within two to three weeks from Treasury Secretary Scott Bessent and Commerce Secretary Lutnick outlining tariffs for their imports to the United States. He said it was impossible to negotiate trade deals with 150 countries before the July 9 deadline. Vietnam and other countries advanced in negotiations hope to be excluded and to reach an agreement before the deadline.

Implications

  • The Ministry of Industry and Trade sent a notice to Vietnamese companies informing them that wood products, steel, construction materials, mechanical and manufacturing industries and nonferrous metals are sectors at elevated risk of trade defense investigations. The ministry recommended that Vietnamese businesses monitor high-risk product groups, communicate with importers regarding potential trade remedy actions, enhance traceability and transparency of production processes, build international-standard accounting systems and improve self-sufficiency in raw materials. The Trade Remedies Authority advised exporters to leverage the benefits of free trade agreements, integrate trade remedy preparedness, diversify export markets and maintain strong connections with trade associations and government agencies as part of their long-term development strategies.
  • Vietnam Customs is collaborating with the World Customs Organization to enhance its ability to prevent origin fraud for imported and exported goods and comply with Vietnam’s international trade commitments. A national seminar on rules of origin was held in Hanoi from May 20-22 with international experts and customs officials. The seminar focused on certification mechanisms, origin inspection, fraud detection, risk management, practical guides and advance rulings under the Trade Facilitation Agreement. Recommendations will be circulated and reported to authorities for improving risk management and inspection skills.

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