Vietnam’s economic landscape has undergone a remarkable transformation over the past few decades, evolving from a primarily agrarian economy to one of the most dynamic export-driven economies in Southeast Asia. Central to this transformation is the United States, which has emerged as Vietnam’s largest export market, playing a pivotal role in the nation’s economic growth and integration into the global economy.

Historical Context: The Emergence of the U.S. as Vietnam’s Largest Export Market

The normalization of diplomatic relations between Vietnam and the United States in 1995 marked the beginning of a new era in bilateral trade. The subsequent Bilateral Trade Agreement (BTA) in 2001 further accelerated trade activities, granting Vietnam most-favored-nation status and reducing tariffs on Vietnamese goods entering the U.S. This agreement laid the foundation for a burgeoning trade relationship.

Over the years, the United States has consistently been Vietnam’s largest export market. In 2024, Vietnam’s trade surplus with the U.S. exceeded $123 billion, underscoring the significance of the American market for Vietnamese exports.

Key Export Commodities to the U.S.

Vietnam’s export portfolio to the United States is diverse, encompassing a wide range of products:

• Textiles and Garments: Vietnam has established itself as one of the leading suppliers of apparel to the U.S., benefiting from competitive labor costs and a well-developed textile industry.

• Footwear: The country’s footwear industry has seen significant growth, with a substantial portion of its products destined for the U.S. market.

• Electronics and Electrical Equipment: Items such as smartphones, computers, and electronic components have become major export categories, reflecting Vietnam’s growing capabilities in high-tech manufacturing.

• Furniture: Vietnamese wooden furniture has gained popularity in the U.S., attributed to quality craftsmanship and competitive pricing.

• Agricultural Products: Products like coffee, seafood, and cashew nuts have found a strong foothold in the American market, leveraging Vietnam’s rich agricultural resources.

Trade Dynamics and Recent Developments

The robust trade relationship between Vietnam and the United States has not been without challenges. In February 2025, Vietnam experienced a rare monthly trade deficit of $1.55 billion, primarily due to a 40% surge in imports, while exports grew by 25.7% compared to the previous year. Despite this, the trade surplus with the U.S. increased to $17 billion in the first two months of the year, a 16.3% rise from the previous year.

To address concerns about trade imbalances and potential reciprocal tariffs from the U.S., Vietnam has been proactive in reviewing its import duties on American goods, particularly liquefied natural gas (LNG), agricultural products, and high-tech items. This initiative aims to boost Vietnamese imports of these key U.S. products and facilitate U.S. business operations in the country.

Geopolitical Considerations

The global trade environment has been influenced by policies aimed at reducing dependence on specific markets. For instance, efforts to decrease reliance on Chinese imports have led to the “China plus one” strategy, where companies diversify their supply chains by incorporating other countries like Vietnam. However, aggressive trade policies targeting such strategies pose risks to Vietnam, given its significant trade ties with both China and the U.S.

Diplomatic Engagements and Economic Cooperation

High-level engagements have reinforced the commitment to strengthening economic ties. In November 2024, Vietnam’s Communist Party leader To Lam congratulated Donald Trump on his U.S. presidential election victory during a phone call in which they discussed enhancing economic cooperation. This conversation underscored the importance of the U.S. as Vietnam’s largest export market and the mutual desire to bolster bilateral relations.

Conclusion

The United States’ position as Vietnam’s largest export market is a testament to the successful economic reforms and strategic trade policies implemented by Vietnam over the past few decades. This relationship has not only contributed significantly to Vietnam’s economic growth but has also facilitated its deeper integration into the global economy. As both nations navigate the complexities of global trade dynamics, their continued collaboration and mutual adjustments will be crucial in sustaining and enhancing this vital economic partnership