After months of intense negotiations, Vietnam and the United States have officially announced a joint declaration on the framework for a reciprocal, fair, and balanced Trade Agreement. This is not only a historic step in bilateral economic relations but also opens a "golden door" for Vietnamese goods, with several key products having the opportunity to enjoy a reciprocal tax rate of 0% when entering the massive US market—valued at trillions of USD annually.
Foundation of the Agreement: From BTA to Fair Reciprocity
The new agreement builds upon and elevates the US-Vietnam Bilateral Trade Agreement (BTA) signed in 2000 and effective from 2001. According to the Ministry of Industry and Trade, Vietnam commits to opening its market with preferential treatment for nearly all US agricultural and industrial exports. In return, the US will maintain a reciprocal tax rate of 20% (per Executive Order 14257 dated April 2, 2025) but will consider reducing it to 0% for products listed in Annex III of Executive Order 14356 (September 5, 2025) for partners with aligned orientations.
Both sides also commit to eliminating non-tariff barriers: Vietnam will accept vehicles produced under US safety and emission standards; resolve issues related to import licenses for US medical equipment; and simplify regulatory requirements and approval processes for US pharmaceuticals. The US will recognize Vietnamese agricultural certifications and cooperate to combat tax evasion. Fields such as digital trade, services, investment, labor, and the environment will be negotiated in greater depth.
Concrete Goodwill: Vietnam Increases Purchases of US Goods
To demonstrate "aligned orientation," Vietnam has taken decisive action. Vietnam Airlines signed a contract to purchase 50 Boeing aircraft worth over $8 billion. Vietnamese enterprises signed 20 memoranda of understanding to buy US agricultural products totaling $2.9 billion. Deputy Prime Minister Bùi Thanh Sơn emphasized during a meeting with US Ambassador Marc Knapper: Vietnam will continue purchasing high-tech US goods such as aircraft, semiconductors, etc., expand market access for US businesses, and create favorable conditions for US companies to operate effectively in Vietnam.
Which Products Have the Opportunity for 0% Tax?
Annex III prioritizes US products that cannot be produced domestically or are in short supply: natural graphite, neodymium magnets, LED lights, certain agricultural products, aircraft, and non-patented pharmaceuticals. For Vietnam, priority tax reductions apply to "specialty" goods that do not directly compete with the US, such as:
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Agriculture & Seafood: Robusta coffee (Vietnam ranks 2nd globally after Brazil), pepper, specialty fruits (durian, coconut, passion fruit, green-skinned pomelo), freshwater shrimp (giant river prawn, whiteleg shrimp).
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Textiles & Footwear: The US does not produce these domestically; most US brands outsource manufacturing to Vietnam.
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High Technology: Semiconductors, AI, Big Data—fields where Vietnam is cooperating with the US on technology transfer.
Prospects and Challenges
In the coming weeks, both sides will finalize the Agreement for signing and implementation. Vietnamese enterprises need to improve quality, ensure traceability, and diversify markets. If successful, exports to the US will surge, enabling Vietnam to integrate deeper into global supply chains. The joint declaration is not just about "tax rates" but a testament to the strategic partnership. With goodwill from both sides, Vietnamese goods are poised to "fly higher" in the US commercial sky!