Weak Dong Pushes U.S. Trade Deficit With Vietnam To $110 Billion

The US trade deficit with Vietnam surpassed $110 billion in the first 11 months of 2024, according to the latest US statistics, as exports from the Southeast Asian industrial hub increased amid a record drop in its currency, the dong, against the dollar. Francesco Guarascio reported for Reuters.

Vietnam now has the fourth-highest trade surplus with the US, following China, the European Union, and Mexico.

The data released by the US statistics agency revealed an almost 18% increase in the deficit compared to the same period in 2023. This positions Vietnam as having the fourth-highest trade surplus with the US, following China, the European Union, and Mexico.

Analysts warn that the growing trade gap poses significant risks for Vietnam’s export-driven economy, particularly in light of President-elect Donald Trump's threats to impose tariffs of up to 20% on all US imports.

These concerns are heightened by the sharp depreciation of Vietnam's dong in recent months, which is trading near its lowest levels against the dollar.

The currency's decline has drawn scrutiny from Washington, as Vietnam is among the nations monitored for potential currency manipulation. Vietnam, whose largest export market is the US, hosts major export-focused operations of multinational corporations like Apple, Google, Nike, and Intel.