Vietnam's Trade Surplus with the U.S. Reaches Record $123.4 Billion in 2024, a 18% Increase – World's 4th Largest

Vietnam's trade surplus with the U.S. marks a significant milestone, positioning the country as a global leader in trade relations.

In 2024, Vietnam recorded a trade surplus of $123.46 billion with the United States, marking an 18% increase from the previous year. This surge was reported by major outlets like MarketWatch and Straits Times on February 6, citing data from the U.S. Department of Commerce. The figure represents a new all-time high for Vietnam's trade balance with the U.S. and positions the Southeast Asian country as the fourth-largest trade surplus holder globally, following China, the European Union (EU), and Mexico.

In total, Vietnam’s exports to the U.S. reached approximately $136.56 billion, while its imports from the U.S. amounted to $13.1 billion. This resulted in a significant trade surplus, making Vietnam one of the largest net exporters to the U.S. In comparison to other nations, Vietnam's export growth has been particularly notable, reflecting its pivotal role in the global economy.

The 18% year-on-year increase in Vietnam's trade surplus with the U.S. underscores the nation's growing economic influence. While China maintained the highest trade surplus with the U.S. at $295.4 billion, it fell short of its record high reached in 2018. Similarly, the EU's trade surplus grew by 13% to $235.57 billion, and Mexico saw a 12.5% increase to $171.81 billion.

Vietnam, which is highly dependent on trade, with exports accounting for about 90% of its GDP, has become one of the key beneficiaries of the trade war between the U.S. and China. As a result, Vietnam has increasingly taken on the role of a production hub that partially substitutes China’s manufacturing capacity. This shift has been particularly evident since the onset of the trade tensions during the Trump administration, which triggered significant changes in global trade flows.

While the U.S. has not imposed tariffs on Vietnam, its continued focus on addressing trade deficits could mean that the country might face additional scrutiny. Trade analysts suggest that Vietnam could become a target for higher tariffs as the U.S. seeks to correct what is perceived as an imbalance in trade. In anticipation of potential punitive measures, Vietnam has already signaled its intent to increase imports of U.S. products, including aircraft and liquefied natural gas (LNG), in an effort to offset the growing surplus and avoid retaliatory tariffs.

Vietnam's response highlights the complex dynamics of global trade relations, where countries with growing trade surpluses are balancing economic success with strategic measures to avoid escalating tensions. As the global economy continues to evolve, Vietnam's trade practices will likely remain a key point of interest for both policymakers and businesses around the world.