Trump’s Top Diplomat Presses Vietnam on Trade
On a recent call, US Secretary of State Marco Rubio engaged with Vietnam’s Foreign Minister, Bui Thanh Son, emphasizing the need for Hanoi to address “trade imbalances.” The conversation also covered shared concerns regarding China’s activities in the region.
During the dialogue, the two leaders celebrated the 30th anniversary of diplomatic relations between the US and Vietnam. They acknowledged the progress made under the Comprehensive Strategic Partnership established in 2023, as outlined in a recent State Department statement.
“The Secretary also discussed regional concerns, particularly China’s aggressive behavior in the South China Sea,” the statement indicated.
While appreciating the bilateral economic cooperation, Rubio urged Vietnam to tackle the significant trade imbalances that exist between the two nations.
According to US figures, the trade deficit with Vietnam surpassed $110 billion in the first 11 months of 2024. This number reflects soaring exports from the Southeast Asian nation amidst a significant depreciation of its currency against the dollar.
As Vietnam has become an increasingly important security partner for the US, the substantial trade gap raises concerns for the export-driven economy, especially given former President Donald Trump’s threats of broad tariffs on US imports.
Data indicated that the trade deficit with Vietnam rose nearly 18% compared to the previous year, positioning Vietnam as the country with the fourth highest commercial surplus with the United States. It follows only behind China, the European Union, and Mexico.
Trump concluded his first term by labeling Vietnam and Switzerland as currency manipulators, citing their market interventions to weaken their currencies’ values.
With the United States being Vietnam’s largest market, the country is home to numerous export-focused industrial operations owned by major US corporations such as Apple, Google, Nike, and Intel.
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