Vietnam and US near completion of trade deal negotiations

Vietnamese Deputy Prime Minister Pham Gia Tuc announced on October 14, 2026, that Vietnam has nearly completed trade deal negotiations with the United States and submitted a final draft. However, U.S. officials remain cautious as trade imbalance concerns persist, with Vietnam's trade surplus exceeding $163 billion in 2026. Washington continues tariff investigations into Vietnamese trade practices, while urging Hanoi to reform energy pricing and loosen cross-border data transfer restrictions.

Status of bilateral trade negotiations

• ▪Vietnamese state media reported that top Vietnamese leader To Lam received a United States invitation to the December 2026 G20 summit in Florida, raising expectations a bilateral trade deal could be finalized during the event
• ▪U.S. Assistant Secretary of Commerce David Fogel and U.S. Ambassador Jennifer Wicks stated on October 14, 2026, that trade negotiations between the United States and Vietnam remain ongoing
• ▪Vietnamese Deputy Prime Minister Pham Gia Tuc announced on October 14, 2026, that Vietnam has nearly completed trade deal negotiations with the United States and submitted the final text of the agreement to Washington
• ▪Export-reliant Vietnam has been in trade negotiations with the United States for over a year to avoid punitive trade tariffs

US trade deficit with Vietnam

• ▪According to U.S. trade data, Vietnam's trade surplus with the United States exceeded $163 billion from January to August 2026, surpassing U.S. deficits with Mexico and China
• ▪Vietnamese customs data reported that Vietnam's trade surplus with the United States reached $122.6 billion during the first three quarters of 2026
• ▪U.S. Assistant Secretary of Commerce David Fogel stated on October 14, 2026, that the United States trade deficit with Vietnam is the largest the United States has with any trading partner

US trade investigations against Vietnam

• ▪A United States investigation into forced labor in Vietnam resulted in a 12.5% tariff on Vietnamese products
• ▪Following the Supreme Court action striking down the US' global tariffs in February 2026, the Trump administration launched three investigations into Vietnamese trade practices, including alleged forced labor usage, industrial overcapacity, and intellectual property rights protection
• ▪Trump administration officials have repeatedly accused Vietnam of serving as a transit point to lower duties on Chinese goods bound for the United States

US technology exports to Vietnam

• ▪Vietnam currently faces restrictions over its access to the most advanced technologies of the United States
• ▪U.S. Assistant Secretary of Commerce David Fogel urged Vietnamese businesses to invest in the United States and noted the United States could export super-intelligence hardware to Vietnam

Data protection rules impact foreign investment

• ▪U.S. technology companies have repeatedly warned that Vietnam's strict limits on cross-border data transfers discourage foreign investment in the country
• ▪U.S. Ambassador to Vietnam Jennifer Wicks urged Vietnam on October 14, 2026, to adjust its data protection regulations to attract foreign investment and enable efficient technology deployment

Energy sector policies and foreign investment

• ▪U.S. Ambassador to Vietnam Jennifer Wicks urged Vietnam on October 14, 2026, to establish predictable policies and stable pricing rules to foster foreign investment in its expanding energy sector
• ▪Vietnam has conducted years of power plant electricity price negotiations with potential foreign investors and retroactively reduced price subsidies for select renewable energy investors

Debatable claims

• ▪The US should eliminate tariffs on Vietnamese imports
• ▪Vietnam's export boom relies primarily on transshipping Chinese goods
• ▪Vietnam's cross-border data restrictions hinder foreign technology investment
• ▪The large US trade deficit with Vietnam reflects unfair trade practices