Vietnam

The United States and Vietnam concluded a Trade and Investment Framework Agreement (TIFA) in 2007 and since then have held six formal meetings to review Vietnam's implementation of its WTO commitments and consider additional initiatives to further enhance trade and investment opportunities between the two countries.

The most recent meeting was held in April 2009. Among the issues discussed were expanding customs cooperation, Vietnam's recent import licensing regime, telecommunications, environmental issues, sanitary and phytosanitary measures inhibiting exports of U.S. beef to Vietnam and new biotechnology policies being developed by the Vietnamese Government.

The two sides also discussed intellectual property rights (IPR) enforcement under an IPR working group established under the TIFA to expand further the already close cooperation and coordination efforts. The two sides also consulted closely on Vietnam's plans to reform its labor laws.

In June 2008, the United States and Vietnam launched negotiations of a Bilateral Investment Treaty (BIT) with the aim of expanding upon the existing investment provisions included in the BTA.

The first round of BIT negotiations took place in December 2008 in Washington and the next round is schedule for June 1-2 in Hanoi. In 2008, the United States and Vietnam also agreed to implement, with respect to each other, Phase I of the Asia-Pacific Economic Cooperation (APEC) Mutual Recognition Arrangement for Conformity Assessment of Telecommunications Equipment (APEC Telecom MRA).

This agreement will lead to a reduction in the costs and time involved in exporting telecommunications and information technology equipment to Vietnam.

In September 2008, the United States announced its intention to begin negotiations to join the Trans-Pacific Strategic Economic Partnership (TPP) agreement, a high-standard FTA between Singapore, Chile, New Zealand, and Brunei Darussalam, intended to serve as a vehicle for Trans-Pacific economic integration. Shortly after the U.S. decision to join the negotiations, Australia, Peru, and Vietnam indicated their interest in participating as well. A public hearing on TPP was held on March 4, 2009.

The Administration is currently reviewing its overall trade strategy, including the TPP.

U.S.-Vietnam Trade Facts

Vietnam is currently our 38th largest goods trading partner with $15.7 billion in total (two ways) goods trade during 2008. Goods exports totaled $2.8 billion; Goods imports totaled $12.9 billion. The U.S. goods trade deficit with Vietnam was $10.1 billion in 2008.

Exports

Vietnam was the United States' 49th largest goods export market in 2008.

U.S. goods exports to Vietnam in 2008 were $2.8 billion, up 46.6% ($886 million) from 2007.

The top export categories (2-digit HS) for 2008 were: Machinery ($331 million), Vehicles ($328 million), Meat (beef and poultry) ($230 million), Cotton/Yarn/Fabric ($194 million), Plastic ($165 million).

U.S. exports of agricultural products to Vietnam totaled $906 million in 2008. Leading categories include: cotton ($193 million), red meats fresh/chilled/frozen ($161 million), and dairy products ($84 million).

Imports

Vietnam was the United States' 30th largest supplier of goods imports in 2008.

U.S. goods imports from Vietnam totaled $12.9 billion in 2008, a 21.3% increase ($2.3 billion) from 2007.

The top imports categories (2-digit HS) for 2008 were: Knit Apparel ($2.8 billion); Woven Apparel ($2.3 billion); Furniture and Bedding ($1.4 billion); Footwear ($1.2 billion); and Mineral Fuel and Oil (crude) ($1.1 billion).

U.S. imports of agricultural products from Vietnam totaled $760 million in 2008. Leading categories include: coffee (unroasted) ($292 million), and tree nuts ($277 million).

Trade Balance

The U.S. goods trade deficit with Vietnam was $10.1 billion in 2008, a 15.8% increase ($1.4 billion) over 2007.

Investment

U.S. foreign direct investment (FDI) in Vietnam (stock) was $281 million in 2007 (latest data available), down 11 percent from 2006.