Since signing the TIFA, Vietnam has indicated a desire to foster closer trade relations. According to U.S. trade statistics, U.S. exports to Vietnam declined by nearly $2 billion in 2017, but Vietnamese trade statistics show an increase in imports from the United States of almost $500 million. In May 2016, President Obama announced that he would lift the remaining restrictions on arms sales to Vietnam. Bilateral Trade Balance

The Trump Administration has indicated that reducing U.S. bilateral trade deficits will be a priority in its trade policy. The $32 billion bilateral merchandise trade deficit with Vietnam in 2016 was reportedly a major issue during President Trump's May 2017 meeting at the White House with Vietnam's Prime Minister Nguyen Xuan Phuc. The measures included:
Both nations "creating favorable conditions for the businesses of both sides, particularly through the effective use of the Trade and Investment Framework Agreement to address issues in United States-Vietnam relations in a constructive manner"; Vietnam pursuing "a consistent policy of economic reform and international integration, creating favorable conditions for foreign companies, including those of the United States, to do business and invest in Vietnam"; Vietnam protecting and enforcing intellectual property; Vietnam "bringing its labor laws in line with Vietnam's international commitments"; and Both nations pledging "to continue to work together constructively to seek resolution of other priority issues of each country, including those related to intellectual property, advertising and financial services, information-security products, white offal, distiller's dried grains, siluriformes , shrimp, mangos, and other issues." In addition, Vietnam's Minister of Trade and Investment Tran Tuan Anh met with U.S. Trade Representative Robert Lighthizer on May 30, 2017, and asked that the United States recognize Vietnam as a market economy, lift the new catfish inspection regulations, and accelerate the licensing of Vietnamese fruit exports to the United States. In the 2008 Farm Bill ( P.L. 110-246 ), Congress transferred catfish inspection (including basa , swai , and tra ) from the Food and Drug Administration (FDA) to the U.S. Department of Agriculture (USDA); Congress confirmed that transfer in the Agriculture Act of 2014 ( P.L. The inspection program was implemented as scheduled. Arms Sales

In 1975, U.S. military sales to Vietnam were banned as part of the larger U.S. ban on bilateral trade. The Trump Administration has indicated that it sees increased U.S. arms sales to Vietnam as one means of reducing the bilateral merchandise trade deficit, as well as strengthening the security partnership with Vietnam. For over 20 years, Vietnam has been transitioning from a centrally planned economy to a market economy. The United States currently is a party to 40 BITs; Vietnam has signed over 50. Action on the part of Congress as a whole may be required if the terms of the BIT require changes in U.S. law. Possible Regional Trade Agreements

Although the United States has withdrawn from the TPP, the remaining 11 nations, including Vietnam, signed a proposed regional trade agreement, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), on March 8, 2018. In addition, Vietnam is among 16 nations negotiating another proposed RTA, the Regional Comprehensive Economic Partnership (RCEP). According to the USITC, U.S. imports from Vietnam were up 5.2% year-on-year for the first two months of 2018, while U.S. exports to Vietnam were down 2.4%, possibly indicating that the U.S. bilateral merchandise trade deficit with Vietnam will continue to grow. On April 29, 2017, President Trump issued Executive Order 13796, "Addressing Trade Agreement Violations and Abuses," which, among other things, requires the Secretary of Commerce, and the U.S. Trade Representative to "conduct comprehensive performance reviews" of "all trade relations with countries governed by the rules of the World Trade Organization with which the United States does not have free trade agreements but with which the United States runs significant trade deficits in goods." Vietnam is one such country. The Agriculture and Nutrition Act of 2018 ( H.R.
President Trump's decision in January 2017 to withdraw the United States from the proposed Trans-Pacific Partnership (TPP) trade agreement removed a major focus of trade relations with the Socialist Republic of Vietnam (Vietnam) since 2008. As a result, trade relations are likely to refocus onto various bilateral trade issues such as the rising U.S. bilateral merchandise trade deficit with Vietnam, Vietnam's desire to be recognized as a market economy, and various elements of each nation's trade policies and regulations. Congress may play a role in each of these trade issues.
Over the last 20 years, the U.S. merchandise trade balance with Vietnam has gone from a surplus of $110 million in 1997 to a deficit of more than $38 billion in 2017. The 2017 bilateral merchandise trade deficit with Vietnam was the 5th largest for the United States. U.S. exports declined in 2017 by nearly $2 billion compared to 2016, while U.S. imports from Vietnam increased by more than $4 billion. Given President Trump's focus on nations with which the United States has a bilateral merchandise trade deficit, Vietnam's trade policies and practices may face increased scrutiny from his Administration in the months ahead.
One issue that was prominent during the TPP negotiations, and will likely remain an issue during the 115th Congress, were changes in U.S. laws regulating catfish imports that the Vietnamese government saw as protectionist, including the 2008 Farm Bill (P.L. 110-246) which shifted the inspection of catfish from the Food and Drug Administration (FDA) to the U.S. Department of Agriculture (USDA). Given the views expressed by some Senators, catfish import regulation may be addressed if the Senate considers the Agriculture and Nutrition Act of 2018 (H.R. 2).
A new trade issue that may arise is U.S. arms sales to Vietnam. In May 2016, President Obama ended the remaining restrictions on lethal arms sales to Vietnam that had been in place since the end of the Vietnam War in 1975. President Trump has indicated that he sees U.S. arms sales to Vietnam as an important method of reducing the bilateral merchandise trade deficit. While Vietnam has made few purchases of U.S. military equipment and materials since the removal of the restrictions, Vietnamese officials indicate that more requests may be submitted. In certain circumstances, Congress can play a role in the approval or disapproval of such arms sales.
Each nation has raised other concerns about the other's trade policy. Vietnam would like the United States officially to recognize it as a market economy and sign a bilateral investment treaty (BIT). The United States would like Vietnam to increase U.S. imports, reduce certain technical barriers to trade, and implement various labor reforms.
The importance of Vietnam's trade relations with the United States may be influenced by two proposed regional trade agreements. Vietnam is a party to the 11-member Comprehensive and Progressive Agreement on Trans-Pacific Partnership (CPTPP), which was signed in March 2018, as well as the proposed Regional Comprehensive Economic Partnership (RCEP); the United States is not. The implementation of either trade agreement is likely to increase Vietnam's trade flows to the other nations in the trade agreements, and decrease its trade with the United States.
The 115th Congress may play an important role in one or more of these issues, as have past Congresses. No legislation has been introduced regarding trade relations with Vietnam, but other legislation, such as H.R. 2, may contain relevant provisions.