Vietnam says trade talks with US nearly completed; US officials more cautious

The two countries are negotiating an agreement on reciprocal trade. Vietnam’s Deputy Prime Minister Pham Gia Tuc said the talks were nearly complete and that Vietnam had sent the final text to the United States. The agreement matters because the United States is Vietnam’s largest export market, making stable access important for Vietnamese producers.

Vietnam wants favourable, stable, and sustainable access for its goods. It also wants an objective assessment in the US Section 301 investigation, which covers industrial overcapacity and intellectual-property rights. These requests show that market access and trade-related disputes remain central to the negotiations.

US officials used more careful language. Ambassador Jennifer Wicks said the governments “continue to negotiate,” while Commerce official David Fogel said he was only “hopeful” they would keep working together. Washington also raised data rules, energy pricing, and the large US trade deficit with Vietnam, suggesting several issues still need attention.

A reciprocal trade agreement is a deal in which both countries exchange commitments rather than receiving benefits from only one side. Each government may reduce barriers, improve access, or accept shared rules for the other country’s goods and businesses. The exact commitments depend on the negotiation.

In this case, Vietnam wants the United States to keep creating favourable conditions for Vietnamese goods to enter its market. US officials are pressing Vietnam on data protection, energy pricing, industrial overcapacity, and intellectual-property practices. These topics show that reciprocity can include regulatory expectations, not only tariffs.

The agreement matters because trade between the countries is significant. The United States is Vietnam’s largest export market, while Vietnam’s surplus with the United States reached US$122.6 billion in the first three quarters of the year. Both sides therefore have strong reasons to seek stable rules, though officials differ on how close the deal is.

Vietnam’s trade surplus with the United States was US$122.6 billion in the first three quarters of the year. A surplus means Vietnam’s exports to the United States were worth more than its imports from the United States during that period. The figure comes from Vietnamese government customs data.

The number matters because the United States is Vietnam’s largest export market, and US Commerce official David Fogel said the US deficit with Vietnam was the largest deficit Washington has with any partner. This imbalance is part of the wider context surrounding the negotiations on reciprocal trade.

The figure does not by itself determine whether an agreement will be reached. However, it helps explain why US officials are focused on trade relations and why they urged Vietnamese businesses to invest more in the United States. The talks also cover market access, data rules, energy pricing, and intellectual property.

A US Section 301 investigation is a formal review under US trade law of another country’s policies or practices affecting American trade. The process can examine whether those practices are unfair or harmful to US businesses. The source does not specify the investigation’s possible outcome, so no particular penalty can be assumed.

The article identifies two areas under examination: industrial overcapacity and intellectual-property rights in Vietnam. Industrial overcapacity can raise concerns about production exceeding demand, while intellectual-property rights concern protection for creations, inventions, and business knowledge. Vietnam’s Deputy Prime Minister asked the United States for an objective and balanced assessment.

The investigation matters because its findings could influence the trade agreement. Vietnam wants continued favourable access for its goods in the US market. US officials, meanwhile, are seeking broader cooperation and regulatory changes. The investigation therefore adds another layer to negotiations that have already continued for more than a year.

If the countries fail to secure stable rules, Vietnamese exporters could face less predictable access to the US market. That matters because the United States is Vietnam’s largest export market. Businesses may find it harder to plan sales, investment, and production when trade conditions remain uncertain.

US businesses could also face uncertainty in Vietnam. The article highlights strict limits on cross-border data transfers and unpredictable energy-pricing policies. US technology companies say data restrictions discourage investment, while unstable electricity pricing can make energy projects harder to assess. These are practical rules that affect whether firms can operate efficiently and forecast costs.

The negotiations have lasted more than a year, and Vietnam says it has sent the final text. US officials remain more cautious, while urging Vietnam to improve data and energy policies. If stable rules are secured, both sides could gain clearer conditions for trade and investment. If not, uncertainty may persist.

Cross-border data rules matter because modern companies often move information between offices, customers, and services in different countries. The article says US technology companies have repeatedly warned that Vietnam’s strict limits on such transfers discourage investment. Ambassador Jennifer Wicks urged Vietnam to adapt its data-protection framework so businesses can deploy new technologies efficiently.

Electricity prices matter because energy companies need predictable revenue and costs before investing in power plants. Vietnam has negotiated for years over prices it would pay for generated electricity. The government has also retroactively cut price subsidies for some renewable-energy investors. Such changes can make expected returns less certain.

These rules influence whether US companies see Vietnam as a dependable place to invest. Wicks urged predictable policies and stable pricing for the expanding energy sector. The issue is therefore broader than market access: it concerns whether companies can move data, use technology, and forecast income over time.

A trade surplus occurs when a country’s exports of goods exceed its imports. A trade deficit occurs when imports exceed exports. The comparison is usually made between two countries over a stated period. It measures the value of traded goods, not automatically the overall health of either economy.

For example, if Vietnam sells US$150 billion of goods to the United States and buys US$27.4 billion from it, Vietnam has a US$122.6 billion surplus. The United States records the same transactions from the opposite direction: its imports from Vietnam exceed its exports to Vietnam by US$122.6 billion. This is why the balances are mirror images.

The article reports that Vietnam’s surplus reached US$122.6 billion in the first three quarters. David Fogel called the US deficit with Vietnam its largest with any partner. That imbalance helps explain Washington’s focus on reciprocal trade and its request that Vietnamese businesses invest more in the United States.