Vietnam Shows The Way Of Trade Diplomacy Amidst Global Tariffs War

Vietnam has shown how a well calibrated trade diplomacy can be conducted in the year 2025 amidst the ongoing tariff war between the two biggest economic and military powers of the world USA and China. Both countries are having best trade relations with this South East Asian nation which is a sort of leader amongst the emerging economies.

Vietnam’s minister of industry and trade Nguen Hong Dien had telephonic talks on Wednesday night with the U.S. trade representative Jamisen Greer and both side discussed the issues of principles and roadmap for negotiations. Vietnam is making efforts to conclude its trade deal with the U.S. within the 90 day pause declared by the U.S. President Donald Trump early this month. While Mexico and Brazil complained against the U.S. decision soon after the announcement of Trump’s reciprocal tariff rates, Vietnam kept it cool and internally assessed about the best possible option.

US President Donald Trump this month threatened massive 46 percent levies on Vietnam, with Washington accusing the country of facilitating Chinese exports to the United States and allowing Beijing to get around tariffs. This was a delicate charge against Vietnam as for the communist nation which fought both against the USA for long years and paradoxically even against its big brother communist nation China, it was a challenge to keep both the two super powers happy. Vietnam is trying to do that challenging task in the present negotiations with the USA.

The United States was Vietnam’s biggest export market in the first three months of 2025. In fact the U.S, foreign companies are increasingly choosing Vietnam as one of the best destinations for investment. Further in the context of the current trade war with China, some of the China based U.S. companies are shifting operations to Vietnam which is ready with a new policy on foreign direct investment. Vietnam does not want to antagonise USA which offers big possibilities for further growth of Vietnamese economy, but at the same time, Vietnam is keeping China on the right side.

Vietnam’s trade ministry has ordered authorities to tighten control over the origin of goods to avoid U.S. sanctions The full response has not yet been decided but the same will be done in the light of the discussions held with the Chinese President Xi Jinping last week who called upon all the trading nations of Asia to take a position opposing higher tariffs unilaterally imposed by Trump. Xi Jinping also made known his opposition to other countries making trade deals with the USA at Beijing’s expenses. This was meant for Vietnam also as Vietnam manufacturers use large scale Chinese equipment in products exported to the U.S. market.

Vietnam was Southeast Asia’s biggest buyer of Chinese goods in 2024, with a bill of $161.9 billion. So the issue is very crucial for Vietnam as a huge portion of exports to the USA contains Chinese part which has been prohibited as far the present position of Trump.

Vietnam last year had the world’s third-largest trade surplus with the US after China and Mexico. The Asian nation has repeatedly vowed to purchase more American goods such as liquefied natural gas and aircraft, while offering to remove all tariffs on US imports. In fact Vietnam started the process of reducing tariffs on U.S. imports even before the current tariff war.

Vietnam Airlines and Vietcombank on Thursday announced the signing of a provisional deal to finance the purchase of 50 aircraft, which could pave the way for the national carrier to make good on its 2023 commitment to purchase 50 Boeing 737 Max aircraft. This is a part of Vietnam’s effort to meet the U.S. demand of reducing the trade gap. There is a proposal to purchase Lockheed F-16 fighters as a part of the ongoing trade negotiations.

Vietnam is steadily moving to achieve its goal of emerging as the most thriving economy in South East Asia taking advantage of the current tariff war and keeping good terms with both the contending super powers USA and China. (IPA Service)