Vietnam’s trade surplus with US hits record high in 2024

In 2024, Vietnam’s trade surplus with the United States reached a record high, exceeding $123 billion, marking an annual increase of nearly 20%, according to U.S. government data released on February 5, 2025. This significant surplus positions Vietnam behind only China, the European Union, and Mexico regarding trade imbalances with the U.S.

The substantial increase in Vietnam’s trade surplus with the U.S. is partly attributed to manufacturers relocating production from China to Vietnam to circumvent tariffs imposed during the U.S.-China trade tensions. This shift has bolstered Vietnam’s export-driven economy but has also drawn attention from U.S. policymakers concerned about trade deficits.

In response to the growing trade imbalance, U.S. President Donald Trump has implemented a new order to overhaul the U.S. tariff system, aiming to raise U.S. tariff rates to match those of other countries. This policy seeks to address the U.S. goods trade deficit, which surpassed $1.2 trillion last year. The recalibration involves adjusting tariffs on over 17,000 product codes for 186 countries with Most-Favored Nation status, potentially impacting nations like Vietnam with significant trade surpluses.

To mitigate the risk of punitive tariffs, Vietnam has expressed its readiness to increase imports of U.S. agricultural products. Vietnamese Trade Minister Nguyen Hong Dien communicated intentions to U.S. Ambassador Marc Knapper to expand imports of U.S. farm goods, including cotton, soybeans, and tree nuts. This move is seen as a strategic effort to reduce the trade surplus and alleviate potential trade tensions with the U.S.

Additionally, Vietnam is considering policy changes to attract U.S. investments, such as allowing Elon Musk’s Starlink to provide satellite internet services with full ownership of any local subsidiary. This initiative, following extensive discussions with SpaceX, represents a significant policy shift and is perceived as an “olive branch” amid concerns about potential U.S. tariffs. SpaceX plans to invest $1.5 billion in Vietnam, which could help reduce the trade surplus and mitigate tariff risks.

These combined efforts reflect Vietnam’s proactive approach to addressing trade imbalances and fostering a more balanced economic relationship with the United States.

Cre: Vietnam’s trade surplus with US hits record high in 2024 | Reuters