HANOI (Bloomberg): Vietnam’s trade surplus with the US widened to US$123.5 billion last year, making the manufacturing powerhouse a potential prime target for President Donald Trump’s tariffs.
The Southeast Asian nation’s trade gap rose 18% compared to the previous year, according to US Census Bureau data. That gives it the third-highest surplus that any country has with the US, behind China and Mexico.
Vietnam is among the world’s most trade-dependent nations, with exports equivalent to about 90% of economic output, and counts the US as its most significant customer.
Sales have surged since the trade war that broke out during Trump’s first term, when businesses were seeking to relocate away from China, and Vietnam became an alternative base for production aimed at American markets.
Trump has singled out countries that run large surpluses with the US as tariff targets. He imposed 10% tariffs on China this week, leading Beijing to respond with its own tariffs and export restrictions, and has threatened new charges on Mexico and Canada that are on hold for now.
Vietnamese Prime Minister Pham Minh Chinh warned on Wednesday that the country’s exports may face major challenges this year, especially from US trade protection and tax policies, according to a government briefing.
The risk of increasing global trade friction due to retaliatory tariffs may also hurt Vietnam’s export activities, he added.
Vietnam’s leaders have made efforts in recent months to balance relations with China and the US, and vowed to buy more American products like aircraft and liquefied natural gas.
At the World Economic Forum in Davos last month, Chinh said the nation was "working on solutions” to address its trade surplus with the US, reiterating a promise to buy Boeing Co. planes. He also said he was ready to "play golf all day long” if that would help improve relations with Trump.
-- With assistance from Nguyen Dieu Tu Uyen. -- ©2025 Bloomberg L.P.
