After 1975, Vietnam-US relations fell into a state of confrontation that lasted for the next two decades. At that time, the United States imposed a comprehensive trade embargo on Vietnam and only maintained minimal contact to serve humanitarian purposes such as searching for missing US servicemen (POW/MIA). However, entering the 1990s, the international order changed rapidly with the collapse of the Soviet Union, while Vietnam promoted the Doi Moi and economic opening process starting in 1986, and the United States advocated normalizing relations with post-war countries to expand its influence in Asia.
After many rounds of negotiations and high-level contacts, on July 11, 1995, at the White House, President Bill Clinton announced the normalization of diplomatic relations with Vietnam. This was a historic turning point, marking the complete end of hostility between the two sides and paving the way for comprehensive cooperation processes. The establishment of the highest-level representative agencies, the embassies in Washington and Hanoi, and the continuous high-level visits that followed showed that both sides were determined to overcome the past for long-term strategic interests.
Normalization is not only a political and diplomatic decision that has been carefully consulted by the leadership but also has profound strategic significance for both countries. For the United States, this is part of the strategy of repositioning in Asia after the Cold War; for Vietnam, it is an important stepping stone to international integration and breaking the embargo that has held back the country’s economy for more than 20 years.
1995–2007: From former enemies to new partners
In the post-normalization period, under Presidents Clinton and Bush, the United States temporarily put aside political issues to focus on supporting Vietnam in the economic and post-war reconstruction fields. The successful signing of the Bilateral Trade Agreement (BTA) in 2000 opened a wave of bilateral investment and trade, creating the premise for Vietnam to join the World Trade Organization (WTO) in 2007 with strong support from Washington. During this period, two-way trade turnover increased from 451 million USD in 1995 to more than 14 billion USD in 2007.
In addition to economics, the United States also expanded its support in areas such as health (PEPFAR program against HIV/AIDS), education (Fulbright program), and war aftermath, such as mine clearance and Agent Orange remediation. Bilateral relations were initially established on a foundation of mutual benefit and gradually built trust. Vietnam in the United States’ strategy at this time was still obscure as a distant, poor country, partly due to the echoes of ideological differences and the past war and partly because they—the United States—had bigger problems to solve in Iraq and Afghanistan.
2008–2016: Comprehensive partnership in rebalancing strategy
The rise of China has become a factor that has made the United States pay more attention to Vietnam in its foreign policy. The Obama administration has launched a strategy of “rebalancing” (pivoting) to the Asia-Pacific region to contain Beijing’s growing influence. In that context, Vietnam has emerged as a key partner. In 2013, the two countries signed a Comprehensive Partnership, expanding cooperation to sensitive areas such as defense, security, science and technology, and weapons. Most notably, in 2015, the United States lifted its ban on the purchase of lethal weapons for Vietnam, paving the way for the development of national defense capabilities.
In essence, this US military relaxation aims to strengthen Vietnam’s choice of more diverse defense procurement compared to only buying weapons from Russia. More deeply, the US also wants to give Hanoi the opportunity to upgrade its defense against China’s expansion in the South China Sea after the HD-981 incident in 2014. A Vietnam with strong self-defense capabilities will benefit the US’s regional pivot strategy close to traditional Southeast Asian allies such as Thailand and the Philippines.
In addition, the United States began assisting Vietnam in improving its maritime security capabilities through the provision of Hamilton-class patrol boats, officer training, and maritime intelligence sharing. At the same time, Vietnam was invited to join the Trans-Pacific Partnership (TPP)—a US-led initiative to establish a rules-based regional trade order without China.
2017–2025: Strategic Pragmatism and Comprehensive Strategic Partnership
Under President Donald Trump (2017–2021), although the “America First” policy caused the United States to withdraw from the TPP, Washington still maintained substantive cooperation with Hanoi, especially in the fields of trade and defense. Under Donald Trump, he considered Vietnam and ASEAN as a solid foundation to strengthen the United States’ power against China. In 2017, after taking office, Trump visited Vietnam during the APEC event of the same year. In Da Nang, Mr. Trump stated that Vietnam is the center of the Southeast Asian regional security structure as well as an important link in the Free and Open Indo-Pacific (FOIP) strategy.
Along with that, Vietnam was also chosen by Trump as a “peaceful” destination to resolve the nuclear conflict with North Korea in 2019. The meeting between Chairman Kim Jong-un and President Donald Trump in Hanoi further enhanced Vietnam’s position as a destination for the US to consider in resolving international conflicts.
From 2021 onwards, the Biden administration will continue to promote the expanded Indo-Pacific strategy, in which Vietnam is identified as an important partner in the global supply chain and in efforts to maintain freedom of navigation. The United States still identifies China as its biggest geopolitical rival. Southeast Asia is increasingly important to the United States. At that time, the United States will also step up its engagement with its allies such as Japan and the EU with Vietnam to expand the ability to upgrade Hanoi’s economic and defense strength in the face of Beijing’s growing power.
The next milestone is President Joe Biden’s visit to Hanoi in September 2023, during which the two sides upgrade their relationship to a Comprehensive Strategic Partnership. The United States is committed to supporting Vietnam in developing high-quality human resources, semiconductor technology, clean energy, and maritime security.
The results of this upgraded relationship are in the ballpark. According to 2024 figures, two-way trade reached $138 billion, with the United States being Vietnam’s largest export partner. The United States also deployed a $1.5 billion support package for semiconductor capacity development through partners such as Fulbright University Vietnam and USAID.
In summary, Vietnam’s position in the foreign policy of the United States has changed over time with each president’s strategy and with the movement of the world order. From a young partner after mending relations, it has now become a comprehensive strategic partner. The similarity in strategic and economic interests is creating a solid foundation for Vietnam and the United States to expand deeper cooperation.
After 30 years of normalization, the Vietnam-US relationship has become one of the fastest-growing and most substantial bilateral relations in Southeast Asia. Vietnam is present in US foreign policy not only as a potential market but also as a balancing partner in the competitive regional order. The ability to maintain strategic independence, be flexible in relations with major countries, and be proactive in integration makes Vietnam a reliable choice in the US’s expanded Indo-Pacific strategy.
Currently, under President Trump 2.0, the Vietnam-US relationship is still in the process of becoming increasingly close and sharing. However, barriers still exist. Human rights issues are still a sensitive point in bilateral relations. In addition, the change of administration in the United States and the trend of economic protectionism with Trump’s tariffs may affect the stability of the strategy for Vietnam. On Hanoi’s side, proactively connecting negotiations when being taxed at 46% and then reduced to 20% has demonstrated the capacity of Vietnamese diplomats. In addition, the principle of “no military alliance, no side selection” continues to be the foundation in the direction of cooperation, setting limits for expanding cooperation in all fields.
In the context of an increasingly fragmented and complex world, the Vietnam-US relationship can become a model of cooperation that “transcends history and creates the future” if both sides continue to maintain the principles of mutual respect, mutual benefit, and non-interference in internal affairs.
