Vietnam will continue talks with the United States to finalise a trade agreement between the two countries, the Southeast Asian country's government said on Thursday, as U.S. President Donald Trump's new tariffs took effect.

The agreement reached last month reduces U.S. tariffs on imports from Vietnam to 20%, down from the 46% rate proposed in April. However, goods deemed by Washington to be illegally transshipped via Vietnam will face a higher levy of 40%.

Specific details regarding the agreement and transshipment issues have yet to be disclosed.

"In the coming time, the two sides will continue to discuss and implement tasks towards finalising the trade agreement," the Vietnamese government said in a statement.

Minister of Industry and Trade Nguyen Hong Dien said his ministry had submitted a proposal to the prime minister on adaptation to the new tariff policy.

He added that the ministry is developing a comprehensive plan to implement the trade agreement, which is expected to be submitted to the government and related agencies by Friday.

Vietnam's exports rose 16% in July from a year earlier to $42.3 billion, official data showed, with imports also rising 17.8% in the period to $40 billion.

Exports to the U.S. recorded an annual increase of 26% in July to $14.2 billion, customs data showed. Imports from China increased 30.5% to about $16.7 billion in July.

Source: Reuters