Asian Angle | Will Vietnam’s trade charm offensive be enough to placate Trump?

With a hefty US trade deficit, Vietnam’s leadership is betting on diplomacy and substantial investments to keep American tariffs at bay

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US President Donald Trump speaks at the White House on Wednesday. Photo: Abaca Press/TNS

Published: 12:00pm, 30 Mar 2025

Vietnam, as one of the countries with the highest trade surplus with the United States, has done a lot to appease American concerns. Hanoi’s actions, such as promises to buy more US goods and invest in the country, appear to have satisfied senior US officials. But the question is: will these moves be enough to placate US President Donald Trump?

During a meeting on March 14 between Vietnam’s Industry and Trade Minister Nguyen Hong Dien and US Trade Representative Jamieson L. Greer, the latter expressed appreciation for what he viewed as Vietnam’s proactive coordination and straightforward goodwill approach to addressing current US concerns.

The two sides witnessed the signing of a series of cooperation agreements and contracts for the purchase of machinery, equipment, raw materials, services and goods between Vietnamese and US enterprises, amounting to a total value of US$4.15 billion.

According to a Viet Nam News report, Vietnam has also allocated US$50.2 billion for aircraft procurement, aviation services, oil-and-gas exploration, and refined petroleum imports. An additional agreement for US$36 billion is currently under negotiation and is expected to be finalised soon. In total, the value of economic and trade agreements signed between Vietnamese and US enterprises stands at US$90.3 billion. Given that Vietnam’s gross domestic product stood at US$476 billion last year, this signifies a strong commitment to resolving the trade balance issue with the US.

Vietnam’s Prime Minister Pham Minh Chinh (left) looks on as Industry and Trade Minister Nguyen Hong Dien signs a trade agreement in New Zealand last year. Photo: AFP

Vietnam has pulled out all the stops to placate Washington. Given the importance of Dien’s visit to the US, he held the additional title of “special envoy of the prime minister”, conveying the Vietnamese government’s readiness to discuss all economic issues with the US, especially the trade balance. Shortly after the US presidential elections, To Lam, general secretary of the Communist Party of Vietnam, congratulated Trump, demonstrating Hanoi’s willingness to strengthen political communications and thereby reduce the likelihood of US tariffs.

Whether these measures will appease the Trump administration remains uncertain. This will depend, in part, on the speed at which the US$90.3 billion is spent. For now, the timeline is ambiguous. The government’s e-newspaper indicated that the spending would commence this year, but Nguyen Quoc Dung, the Vietnamese ambassador to the US, clarified that the relevant period would span from 2025 to 2030. He added that the US had no additional requirements for Vietnam and would continue discussions with Hanoi pending its decisions. This is probably the highest commitment that the US trade representative could make in such unpredictable circumstances.