Golden Finance reported that sources revealed that during the tariff negotiations between the United States and Vietnam, the US side demonstrated a tough stance and presented Vietnam with a “long and harsh” list of demands. This move undoubtedly adds a lot of uncertainties to the negotiations between the two sides and has also drawn close attention from the market to the direction of trade relations between the United States and Vietnam.
Since the Trump administration of the United States announced on April 2, 2025, the imposition of a 46% “reciprocal tariff” on Vietnam, Vietnam has responded promptly and actively sought to engage in dialogue with the United States. On May 5 local time, Vietnamese Prime Minister Pham Minh Chinh announced at the opening ceremony of the 9th session of the 15th National Assembly of Vietnam that Vietnam will hold the first round of bilateral trade negotiations with the United States on May 7. In the first round of negotiations on May 7th, the two sides reached “positive preliminary results” on the 46% “reciprocal tariffs” that the United States intends to impose on Vietnam, including the US agreeing to postpone the implementation of the high tariffs originally scheduled to take effect in July for 90 days, and the two sides initiating technical consultations to discuss the adjustment of the rules of origin and the tariff gradient reduction plan. And Vietnam has promised to accelerate the value-added tax refund process for export enterprises to the United States, etc.
However, the outcome of the first round of negotiations did not make the subsequent negotiations smooth sailing. After the second round of negotiations held in Washington from May 19th to May 22nd, the website of the Vietnamese government stated that it hopes to reach an agreement on “issues that need to be further discussed” in the third round of negotiations in June. Judging from the current information, the “long and demanding” list of demands proposed by the United States in the negotiations covers multiple fields.
In terms of market access, the US side demands that Vietnam further open up its market, especially in strategic industries such as digital trade, semiconductors, and new energy, to provide more market opportunities for US enterprises. This forms a certain conflict with Vietnam’s goal of promoting the autonomy of the industrial chain. Vietnamese Minister of Industry and Trade Nguyen Hong Dien previously made it clear that “no agreement shall prejudice the rights and interests of the 17 free trade agreements in which Vietnam participates.”
In terms of adjusting trade rules, the Office of the United States Trade Representative (USTR) insists that Vietnam carry out structural reforms in areas such as rules of origin and subsidies for state-owned enterprises. The United States believes that some of Vietnam’s export products have ambiguous rules of origin, and subsidies from state-owned enterprises may cause unfair competition for American enterprises. However, for Vietnam, adjusting these rules may have a significant impact on its domestic industrial structure and economic development model.
The United States also attempts to incorporate Vietnam into the “Indo-Pacific Economic Framework” through tariff negotiations. This demand undoubtedly has a strong geopolitical flavor. In the complex pattern of major power competition, Vietnam has been striving to maintain its strategic autonomy. Previously, Vietnam accelerated the deepening negotiations on the free trade agreement with the European Union, planning to increase the proportion of its exports to Europe from the current 18% to 25% in order to diversify market risks. This move by the United States is clearly aimed at hoping that Vietnam will be more inclined towards the United States and its Allies in terms of trade policy.
Vietnam has always adopted a proactive attitude when dealing with the tariff pressure from the United States. On the one hand, Vietnam has expanded its procurement from the United States through large state-owned enterprises to balance its trade surplus. Enterprises such as Vietnam National Oil and Gas Group and Vietnam Electricity Group have signed equipment purchase agreements worth billions of dollars with US companies, covering key technological products such as gas turbines and GPU chips. On the other hand, the Vietnamese government has simultaneously launched a “dual-track response” mechanism. By strengthening the resilience of the supply chain for agricultural, forestry and aquatic products, expanding emerging export markets such as the Middle East and Latin America, accelerating the “Vietnamese People give Priority to Vietnamese Goods” campaign, and subsidizing local consumption, it is striving to reduce the possible negative impact of tariffs on the United States.
The list of demanding requirements proposed by the United States this time is a huge challenge for Vietnam. If Vietnam accepts it in its entirety, it may harm its domestic industrial interests and affect the independent development of its economy. If refused, further tariff sanctions from the United States might be faced. How the US and Vietnam will play their games at the negotiating table in the future and whether the third round of negotiations can break the deadlock and reach an agreement acceptable to both sides, the global trade market is waiting to see.
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