Expanding Trade and Defense Ties: The U.S. and Vietnam

The United States is actively seeking to deepen its defense relationship with Vietnam amid ongoing trade negotiations. U.S. Ambassador to Vietnam, Marc Knapper, emphasized the growing importance of defense trade between the two nations during a recent event in Hanoi. This initiative aligns with Vietnam's plans to purchase significant American defense equipment to address a trade surplus with the U.S., which reached $123.5 billion in 2024. The U.S. aims to enhance military cooperation, as demonstrated by recent naval visits, including the USS Robert Smalls and USS Tripoli docking in Danang, which brought approximately 2,300 sailors and marines to the region.

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The trade discussions between the U.S. and Vietnam are ongoing, with both sides working to finalize a comprehensive trade deal. Under a framework announced in October, Vietnam is expected to provide preferential market access for U.S. exports, while the U.S. will eliminate tariffs on select products. However, key details remain unresolved, particularly regarding the classification of "transshipped" goods, which are subject to a 40% tariff. This classification is crucial for preventing Chinese goods from circumventing U.S. tariffs by routing through Vietnam.

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Despite the positive outlook on defense and trade relations, there are concerns regarding the implications of increased military cooperation. Critics argue that deepening ties with the U.S. could complicate Vietnam's relationships with other nations, particularly China and Russia. Additionally, the historical context of U.S.-Vietnam relations, marked by the Vietnam War, raises questions about the long-term sustainability of this partnership.

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U.S. officials have expressed optimism about the evolving relationship. Ambassador Knapper stated, “I think defense trade you’re going to see is increasingly a major feature of our two countries’ ties.” Meanwhile, Vietnam's leaders have indicated a commitment to enhancing defense capabilities through American purchases, reflecting a strategic pivot towards the U.S. amidst regional security concerns.

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• “I think we’re going to see more ship visits in the coming year, and I think we’re just going to continue to see greater opportunities for our military leaders,” — Marc Knapper, U.S. Ambassador to Vietnam

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• “It’s not lost on the US government and its people, particularly the MIA families, that 10 years before normalisation, 10 years after the war, it was Vietnam who initiated this cooperation on helping America find its missing,” — Kelly McKeague, Director of the Defence POW/MIA Accounting Agency

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As negotiations continue, both nations are expected to focus on finalizing the trade deal while enhancing defense cooperation. The U.S. is likely to increase military support to Vietnam, which may include further naval visits and the transfer of additional defense equipment. The outcome of these discussions will be pivotal in shaping the future of U.S.-Vietnam relations, particularly in the context of regional security dynamics in the South China Sea.

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