The tariff deal between the United States and Vietnam sets the stage for a further climb in trade volumes between the countries and will also impact the energy generation mix that powers the fast-growing Vietnamese economy.

President Donald Trump said he had reached a trade deal with Vietnam following weeks of intense diplomacy between the nations and ahead of a deadline next week that would have seen higher tariffs imposed on the country’s imports.

China has warned against trade deals that hurt what it calls "third parties", a pointed message just hours after the US sealed an agreement with Vietnam. The new deal slashes tariffs on Vietnamese exports to 20 per cent,