Vietnam’s Prime Minister has ordered urgent negotiations to finalise a US$6 billion methanol gas import agreement with the United States, framing it as a cornerstone of efforts to balance trade and defuse tariff tensions. The PM has said he expects a deal to be finalised in May, according to Cafe F.
Additional points of note:
- The government also aims to boost imports of US goods such as medical equipment, pharmaceuticals, beef, and fruit to improve bilateral trade balance.
- The PM wants to see a reciprocal zero-tariff arrangement and formal recognition by the US if Vietnam as a market economy.
- Fourteen ministries have been directed to submit policy proposals by May 5 to finalise a Decree on trade strategy.
Increasing imports of gas from the United States has been floated a number of times over the last six months as a means to reduce Vietnam’s trade surplus with the US. It does, however, come with challenges in that Vietnam does not have any commercially operational LNG power plants to use all of that fuel. With the PM’s backing, however, this may prove to be inconsequential.
See also: Vietnam Gas Power Industry 2025: Growth, Challenges & Key Players