U.S.-Vietnam Trade Ties: Challenge Ahead

This article offers an overview of the history of US–Vietnam trade relations, focusing on the most contentious issue, Vietnam’s trade surplus with the United States. Since the normalization of bilateral relations in 1995, trade has become the fastest-growing and most critical aspect of the relationship. The article explains how Vietnam became a major supplier of goods to the United States, while many US companies gained a foothold in Vietnam’s market. However, Vietnam’s growing trade surplus with the United States is a cause for concern. The article examines the reasons for this surplus, including the compatibility between each country’s trade structure and Vietnam’s export-led growth model, and explores the potential impact of a protectionist turn in
US international trade policy. Overall, the article provides valuable insights into the complex dynamics of US–Vietnam trade.