Overview

• The trade deal came into force on July 2, eliminating tariffs on US goods entering Vietnam and imposing a 20% duty on Vietnamese exports.
• A 40% levy on suspected transshipments is central to the agreement’s effort to curb Chinese goods routed through Vietnam.
• Market confidence in the pact lifted Vietnam’s main stock index to its highest level in over three years.
• Vietnam’s trade surplus with the US, exceeding $100 billion, underpinned Washington’s rationale for strong reciprocal measures.
• Vietnamese officials and businesses await detailed guidelines on transshipment definitions over concerns of broad enforcement.