Vietnam has enjoyed a trade surplus with the US over the last years

Two-way trade turnover increased from $220 million in 1994 (when the US lifted the embargo against Vietnam) to $1.4 billion in 2001 (when the Vietnam-US Bilateral Trade Agreement took effect) and $50.8 billion in 2017.

In 2017, according to the General Department of Customs (GDC), Vietnam exported $41.6 billion worth of products to the US, while it imported $9.2 billion worth of products from the US. As such, the US was the biggest market that Vietnam had a trade surplus with, valued at $32.4 billion.

In the context of the US President Donald Trump changing policies with an aim to protect the US economy against globalization, the increased deficit in the trade with Vietnam has been mentioned in official talks. The US side said this would create challenges in the two-way trade relationship.

Barriers have been installed by the US to reduce the trade deficit, which means that it will be more difficult for Vietnam to export products to the US.

Deputy Minister of Industry and Trade Do Thang Hai said Vietnamese exporters are facing safeguard measures and unhealthy competition, especially in seafood.

According to Chu Thang Trung, deputy director of the Trade Remedies Department, the US has raised over 100 anti-dumping and anti-countervailing lawsuits against products from many countries. Of these, 25 lawsuits are against products from Vietnam, from export items with large export turnover such as seafood, to items with small export turnover such as woven bags, steel nails or hangers.

In such conditions, the big contracts to purchase US goods from Vietnamese enterprises are believed to have a positive effect when "appeasing" the concerns of US officials and helping balancing bilateral trade.

In late June, FLC signed a contract to buy 20 Boeing 787-9 Dreamliners worth $5.6 billion.

Prior to that, multi-billion dollar contracts in energy and aviation were signed on the occasion of Trump’s visit to Vietnam in late 2017. 

Trump said the US highly appreciates the big orders worth billions of dollars from Vietnamese enterprises, because this means jobs for Americans and high-quality equipment for Vietnam.

Alexander Feldman, chair of the US-ASEAN Business Council, commented that large contracts such as aircraft procurement have important significance. 

They show that both Vietnam and the US need each other. When Vietnam buys aircraft, the US can buy more goods from Vietnam, such as seafood.

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