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Business firms in the United States have signed contracts worth over US$ 4 billion with Vietnamese suppliers of merchandise goods, driven by fears of potential U.S. import tariffs under President Donald Trump's administration. The move aims to safeguard their business interests amid the President's 'America First' policy, which has prioritized imposing tariffs to protect domestic industries.
“The new projects, including those in oil and gas exploration, petrochemical imports, and aviation, are being planned in Vietnam with assistance from U.S. business houses. These projects are estimated to be worth US$ 4.15 billion,” stated a press release on the official website of PetroVietnam Power Corp (PVPower).
Since Donald Trump assumed office as President of the United States on January 20, 2025, he has announced higher tariffs on key trade partners to address the trade deficit (where imports exceed exports). So far, the United States has imposed a 10 percent import duty on Chinese goods, along with an additional 10 percent special tariff. In response, China has implemented a 15 percent import duty, supplemented by a 15 percent special tariff.
Bilateral trade and deficit
Vietnam, the Southeast Asian nation, holds the third-largest trade surplus with the United States, after China and Mexico—both of which have been targeted by the Trump administration. While tariffs on China have already been implemented, tariffs on Mexico have been announced but deferred, with possible implementation expected in April.
Data compiled by the Office of the United States Trade Representative, an Executive Office of the President, showed that U.S. goods trade with Vietnam totaled an estimated US$ 149.6 billion in 2024, up from US$ 124 billion in the previous year. U.S. goods exports to Vietnam in 2024 reached US$ 13.1 billion, marking a 32.9 percent (US$ 3.2 billion) increase compared to 2023. Meanwhile, U.S. goods imports from Vietnam totaled US$ 136.6 billion in 2024, up 19.3 percent (US$ 22.1 billion) from 2023. The U.S. goods trade deficit with Vietnam stood at US$ 123.5 billion in 2024, an 18.1 percent (US$ 18.9 billion) rise from US$ 104.6 billion recorded in 2023.
Since the U.S.-Vietnam bilateral trade agreement was finalized in 2001, trade between the two nations and U.S. investment in Vietnam have grown significantly. Vietnam has welcomed greater U.S. regional engagement, most recently through the Comprehensive Strategic Partnership, and has become one of the United States’ top ten trading partners. The two countries have concluded a trade and investment framework agreement and signed several sector-specific agreements, including those on textiles, air transport, customs, and maritime cooperation.
Trade growth
U.S.-Vietnam bilateral trade has grown from US$ 451 million in 1995 to nearly US$ 124 billion in 2023. In September 2023, the two countries signed a bilateral memorandum of cooperation on semiconductor ecosystem development as part of the Comprehensive Strategic Partnership. This agreement allocated US$ 2 million from the U.S. CHIPS and Science Act’s International Technology Security and Innovation Fund to support semiconductor workforce development activities in Vietnam. An additional US$ 2 million is being implemented through the U.S. Mission to Vietnam’s Public Diplomacy Section for STEM-related education and training programs.
The Comprehensive Strategic Partnership marked a new phase in U.S.-Vietnam economic relations, fostering enhanced collaboration on economic security, semiconductor development, investment climate, the digital economy, cyberspace, energy, and critical minerals. U.S.-Vietnam relations have become increasingly cooperative and comprehensive, evolving into a thriving partnership encompassing political, economic, security, and people-to-people ties. In 2025, Vietnam and the United States will commemorate 30 years of diplomatic relations, reaffirming their commitment to deepened cooperation and mutual growth.
Job creation
Reports indicate that the "highly meaningful" deals aim to establish "balanced and harmonious" trade relations and are expected to create hundreds of jobs for workers in both countries. The latest agreements were signed during a visit by Vietnamese Minister of Industry and Trade Nguyen Hong Dien, who met with U.S. Trade Representative Jamieson Greer in Washington last week.
Business owners in Hanoi are increasingly concerned that Vietnam could become the next target of President Trump’s tariffs, which have already sent shock waves through global markets. The Comprehensive Strategic Partnership underscores the United States’ enduring commitment to the Indo-Pacific region and provides a framework for cooperation in areas such as political and diplomatic relations, trade and economic ties, and defense and security.
Other key areas of collaboration include law enforcement, science and technology, education and training, climate change and energy, environmental protection and health, humanitarian assistance and disaster relief, addressing war legacy issues, the protection and promotion of human rights, people-to-people exchanges, as well as culture, sports, and tourism.
DILIP KUMAR JHA
Editor
dilip.jha@polymerupdate.com
