U.S. and Vietnam Agree to a Framework for Reciprocal Trade Agreement

Trade Update • Oct. 27, 2025

Key Points

• The United States and Vietnam agreed on a framework for a new trade agreement aimed at expanding bilateral market access and strengthening economic cooperation.
  
• Vietnam will provide preferential access for nearly all U.S. industrial and agricultural exports, while the U.S. will maintain a 20% reciprocal tariff on Vietnamese goods, with select items set to zero.
  
• The agreement addresses key non-tariff barriers, including import licensing, conformity assessments, and regulatory approvals for U.S. goods.
• Over $10 billion in commercial deals, including aircraft and agricultural purchases, have been announced alongside the agreement.

The U.S. and Vietnam have agreed on a Framework for an Agreement on Reciprocal, Fair, and Balanced Trade to strengthen their bilateral economic relationship and expand mutual market access. The framework builds on the 2001 U.S.–Vietnam Bilateral Trade Agreement and aims to create a more open and balanced trading environment between both countries.

Addressing Non-Tariff Barriers

Vietnam has agreed to take several steps to improve market access and address non-tariff trade barriers. These include:

• Recognizing vehicles built to U.S. motor vehicle safety and emissions standards
  
• Simplifying import licenses for U.S. medical devices
  
• Streamlining approval procedures for U.S. pharmaceuticals
  
• Fully implementing its obligations under international intellectual property treaties
• Revising conformity assessment procedures that affect trade

Agricultural and Food Trade

Both countries have agreed to prevent and resolve barriers affecting U.S. agricultural exports to Vietnam. Vietnam will continue to recognize U.S. regulatory oversight and accept relevant certificates issued by U.S. authorities.

In connection with the agreement, Vietnamese firms signed 20 memorandums of understanding with U.S. companies to purchase agricultural commodities valued at approximately $2.9 billion.

Digital Trade, Services, and Investment

The framework includes plans to finalize commitments on digital trade, services, and investment, ensuring transparency and supporting data flows between the two economies.

The U.S. and Vietnam will also work together on issues related to intellectual property rights, labor standards, environmental cooperation, customs and trade facilitation, and state-owned enterprise practices to promote fair and responsible trade.

Supply Chain and Industrial Cooperation

Both governments expressed their intent to strengthen supply chain resilience, cooperate on export controls, and address duty evasion.

Recent commercial developments underscore the growing economic partnership. Vietnam Airlines announced plans to purchase 50 Boeing aircraft valued at over $8 billion, reflecting deepening collaboration between U.S. and Vietnamese industries.

Next Steps

The United States and Vietnam will finalize the Agreement on Reciprocal, Fair, and Balanced Trade in the coming weeks, complete domestic procedures, and prepare for its official signing and implementation.

How GHY Can Help?

GHY specializes in helping businesses navigate and reduce the impacts of tariffs through strategic solutions tailored to their needs. Our experts can audit your supply chain to identify inefficiencies, uncover cost-saving opportunities, and ensure compliance with evolving trade regulations. We also employ tariff engineering techniques to optimize product classification and sourcing strategies, minimizing duty exposure and maximizing profitability.

By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.

Contact Us Today! Booking a Meeting, email consult@ghy.com, or call +1 (800) 667-0771.