Vietnam says US trade talks made progress but key issues are unresolved

HANOI – Vietnam and the US made progress during a third round of trade negotiations last week, but critical issues remain unresolved, requiring further analysis and continued dialogue, Vietnam’s Trade Ministry said on June 15.

The talks, held in Washington from June 9 to 12, were a pause on 46 per cent “reciprocal” tariffs on Vietnamese exports, which approach expiration in early July, adding pressure on both sides to reach a compromise.

Vietnam’s trade surplus with the US surged to US$12.2 billion (S$15.6 billion) in May, up nearly 42 per cent year on year and 17 per cent higher than April, Vietnamese government data showed. Exports to the US climbed 42 per cent from a year earlier to US$13.8 billion, hitting a post-pandemic high.

US negotiators have submitted a list of trade demands to Hanoi, which Vietnamese officials described as “tough,” including measures aimed at reducing the South-east Asian country’s reliance on Chinese imports of industrial materials and components.

Vietnam’s Trade Ministry said on June 15 that the delegations had narrowed gaps on issues outlined in Vietnam’s response to the US requests and worked towards mutually acceptable solutions.

Both sides agreed to hold an online meeting in the coming days between Vietnamese Trade Minister Nguyen Hong Dien and US Secretary of Commerce Howard Lutnick to address unresolved issues, the ministry added.

The last round of talks was held between Mr Dien, Mr Lutnick and US Trade Representative Jamieson Greer, a format proposed by the US.

Under pressure from Washington, Hanoi has recently cracked down on illegal trans-shipment – typically when cargo is moved between ships during transit – of goods primarily from China.

It has also expressed willingness to lower non-tariff barriers and increase imports of US goods such as planes, farm products and energy, though no purchase agreements have