The United States and Vietnam have agreed to initiate formal negotiations aimed at establishing a reciprocal trade agreement. The announcement follows a meeting between U.S. Treasury Secretary Scott Bessent and Vietnamese Deputy Prime Minister Ho Duc Phoc, as confirmed by a readout from the U.S. Treasury Department released on Thursday.

“During their talks, Secretary Bessent emphasized the importance of continued engagement with trade partners, and the need for quick, demonstrable progress to resolve outstanding issues,” the statement said. The discussions were part of a broader push by the United States to strengthen trade ties in the region and address longstanding imbalances.

Deputy Prime Minister Ho Duc Phoc also met with U.S. Trade Representative Jamieson Greer during his visit. Both sides reportedly explored mechanisms to improve market access, increase trade volumes, and reduce tariff barriers between the two countries.

Earlier, U.S. President Donald Trump had commented on Vietnam’s willingness to reduce tariffs on U.S. exports to zero. The Vietnamese gesture came in response to Washington’s decision to impose a 46% reciprocal tariff on certain Vietnamese goods. That rate was later temporarily reduced to 10% for a 90-day period to allow space for dialogue and negotiations.

The move to formalize trade negotiations represents a significant step in advancing U.S.-Vietnam relations and addressing key issues affecting bilateral commerce. With Vietnam being one of the fastest-growing economies in Southeast Asia, closer economic cooperation is seen as strategically beneficial to both nations.

The next rounds of discussions are expected to focus on tariff schedules, product-specific concessions, and regulatory alignment to facilitate smoother trade flows. Both governments have signaled that they are committed to achieving tangible progress during the 90-day window while the reduced tariff remains in effect.

As global trade tensions continue to impact markets, the successful conclusion of a trade agreement between the U.S. and Vietnam could provide a positive signal for other countries considering similar bilateral arrangements. The progress made in these talks will be closely monitored by both industry leaders and international observers.