The Vietnamese government has announced the commencement of trade discussions with the United States, a move prompted by the looming threat of a staggering 46 percent tariff proposed by President Donald Trump. This tariff could significantly impact Vietnam's economy, which is heavily reliant on exports.

On Thursday, Vietnamese Minister of Industry and Trade Nguyen Hong Dien held a pivotal phone conversation with US Trade Representative Jamieson L Greer. This dialogue marks the formal initiation of their negotiations, focusing on a spectrum of "bilateral economic and trade issues," as stated by Vietnams Ministry of Trade.

During the call, Nguyen emphasized Vietnam's desire to cultivate a comprehensive strategic partnership with the United States. He articulated the country's aim to enhance economic and trade relations in a manner that is balanced, stable, sustainable, and effective. The ministry's announcement highlighted Nguyen's commitment to addressing US concerns and collaborating to seek solutions that would be beneficial for both countries.

In response, Greer expressed optimism, indicating that both parties would swiftly arrive at agreeable solutions to strengthen stable and mutually advantageous economic and trade relations.

Vietnam's economy is notably one of the most trade-dependent in the world, with exports in 2023 accounting for an impressive 87 percent of its Gross Domestic Product (GDP), according to recent data from the World Bank. This level of dependence underscores the significance of trade negotiations, especially in light of tariff threats.

Trump's proposed 46 percent tariff on Vietnamese exports is among the highest duties levied on any trading partner under his policy of reciprocal tariffs. This steep tax reflects a broader trend where the US government has sought to adjust trade balances by imposing higher tariffs on various countries.

Since Trump's announcement on April 9, which included a 90-day suspension of many of his highest tariffs, Vietnamese exports, like those from numerous other nations, have been subjected to a baseline duty of 10 percent. This temporary reprieve highlights the urgency for Vietnam to engage in negotiations and establish a more favorable trade environment.

In 2022, Vietnam recorded a remarkable trade surplus of $123.5 billion with the United States, marking the fourth-largest trade imbalance globally, following China, the European Union, and Mexico. This surplus not only emphasizes the importance of trade relations with the US but also illustrates Vietnam's significant role in the global supply chain.