Vietnam's Expanding Trade Surplus with U.S.: Risks and Implications

Vietnam's trade deficit with the U.S. surged past $110 billion in 2024, driven by a significant depreciation of the dong against the dollar. This expansion raises concerns of potential U.S. tariffs and accusations of currency manipulation, as Vietnam continues to be a key exporter to the United States.

The U.S. trade deficit with Vietnam soared to over $110 billion in the first 11 months of 2024, according to recent U.S. figures. This increase occurs amid substantial depreciation of Vietnam's currency against the dollar, sparking concerns in Washington over potential currency manipulation.

With Vietnam's economy heavily reliant on exports, analysts view the widening deficit as a risk, particularly in light of President-elect Donald Trump's threats to impose tariffs on U.S. imports. The Vietnamese dong has hit near-record lows against the dollar, compounding these risks.

Vietnam's sizable trade surplus with the U.S. includes contributions from multinational corporations such as Apple and Google, with the latest data showing an increase to $111.6 billion from January to November. The situation remains tense as Vietnam's central bank indicates it will monitor and adapt to Trump's policies.