Vietnam and the U.S. Announce Reciprocal Trade Agreement, Opening New Industrial Opportunities

On October 26, 2025, Vietnam and the U.S jointly announced a new framework for a Reciprocal Trade Agreement, marking an important milestone in the two countries’ economic cooperation.

The announcement took place during the 47th ASEAN Summit in Kuala Lumpur, both countriess emphasized the principles of fairness and balance in trade relations, aiming to deepen mutual market access and foster stable, long-term economic ties.

According to the joint statement, Vietnam will provide broader market access for U.S. industrial and agricultural products, while the U.S. maintains a 20% tariff ceiling on Vietnamese goods, with the possibility of zero-tariff treatment for selected products.

This arrangement is seen as a practical step forward following months of negotiations that helped reduce U.S. retaliatory tariffs on Vietnamese exports — previously as high as 46%.

Reducing Barriers and Enhancing Regulatory Cooperation

Beyond tariff reductions, the new framework prioritizes the removal of non-tariff barriers that have limited trade efficiency. Vietnam will recognize U.S. technical standards for several key product categories, including automotive vehicles, medical devices, pharmaceuticals, and agricultural products, streamlining import procedures and improving market access.

Both countries have also committed to greater transparency in customs operations and closer cooperation on intellectual property protection, aligning Vietnam’s regulations more closely with international norms.

According to trade analysts, these provisions are likely to strengthen investor confidence, particularly among U.S. manufacturers seeking a reliable, standards-compliant base in Asia. Harmonized regulations will also reduce costs for exporters and importers on both sides, making bilateral trade more predictable and efficient.

To safeguard agricultural trade, both governments agreed to establish a joint monitoring mechanism to address technical barriers, such as product certification and inspection standards. Vietnam will accept certain U.S. government certifications, simplifying the approval process for agricultural and food exports.

Major Commercial Agreements Underscore Strong Economic Intent

The trade announcement was accompanied by a series of major commercial agreements that highlight the scale of cooperation between the two economies.

Vietnam Airlines confirmed the purchase of 50 Boeing aircraft worth over USD 8 billion, a deal seen as one of the largest in the carrier’s history. The purchase not only supports Vietnam’s aviation growth but also symbolizes a deepening trust in U.S. technology and manufacturing partnerships.

In addition, nearly 20 memoranda of understanding (MoUs) were signed between Vietnamese and American companies, focusing on agricultural exports and supply chain cooperation valued at approximately USD 2.9 billion.

These agreements reinforce the broader goals of the trade framework, promoting investment, improving logistics connectivity, and expanding bilateral trade in high-value sectors such as aviation, agriculture, and manufacturing.

Negotiators from both countries are expected to finalize technical details in the coming weeks, with the agreement anticipated to enter into force soon after.

Implications for Vietnam’s Industrial and Logistics Sectors

The Vietnam–U.S. Reciprocal Trade Agreement is expected to have positive spillover effects on Vietnam’s export manufacturing and logistics sectors, particularly in industrial regions such as Hai Phong, Bac Ninh.

Improved market access for Vietnamese goods may encourage manufacturers to expand capacity, while tariff stability could attract new FDI from U.S. and allied investors seeking to strengthen their regional supply chains.

Infrastructure developments linked to trade, such as Vietnam Airlines’ aircraft order and expanded seaport activity, also point to rising logistics demand, especially for ready-built factories, bonded warehouses, and distribution hubs near major transport corridors.

Core5 Vietnam’s Perspective on These Emerging Opportunities

As trade relations between Vietnam and the U.S. deepen, industrial developers play a crucial role in enabling manufacturers to respond to new export and compliance opportunities.

Recognizing this transition as a strategic moment for businesses seeking international-standard, sustainable industrial facilities in northern Vietnam’s key manufacturing zones.

With a focus on ready-built and build-to-suit solutions, Core5 Vietnam supports global tenants in aligning operations with new trade standards and ESG requirements, contributing to a more integrated, resilient, and sustainable industrial ecosystem.

For investors seeking to capture opportunities, Core5 Vietnam provides more than facilities , we are your strategic partner in long-term success.

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