Vietnam is spending billions of dollars on importing critical goods from the United States, a move that supports domestic economic growth, reduces the trade surplus, and strengthens the comprehensive strategic partnership between the two nations.

Billionaire Nguyen Thi Phuong Thao secures landmark deal

Nguyen Thi Phuong Thao, founder of Vietjet (VJC), recently met with strategic global partners at the Mar-a-Lago estate of US President-elect Donald Trump during the "Friends of Vietnam Summit" from January 9–11.

This significant event in Vietnam-US economic relations occurred just before President Trump’s return to the White House on January 20.

Vietjet’s large-scale purchase of Boeing aircraft not only boosts bilateral trade but also enhances aviation cooperation and connectivity within Vietnam and internationally.

In 2025, Boeing is scheduled to deliver 14 Boeing 737 Max aircraft to Vietjet. This follows a 2017 agreement, suggested by then-President Trump, for Vietjet to purchase 100 planes, bringing its total Boeing orders to 200 aircraft.

With each plane estimated to cost $100 million, the total contract value could reach $20 billion. Bulk purchases may also include significant discounts, benefitting both Vietjet and Boeing.

This deal is one of the largest commercial aircraft transactions in Vietnam’s aviation history and stands as the most significant Boeing 737 Max order in Asia.

Vietnam ramps up imports from the US

Since 2011, the US has been Vietnam’s top export market, accounting for nearly 30% of its total export turnover. Vietnam primarily exports textiles, footwear, furniture, seafood, and agricultural products to the US.

On the other hand, Vietnam is steadily increasing imports from the US, not only in machinery but also in agricultural goods.

According to the General Department of Vietnam Customs, the country imported over $15.1 billion worth of goods from the US in 2024, a 9.4% increase from $13.8 billion in 2023.

Key imports include:

Computers, electronics, and components: $4.34 billion (up from $3.8 billion in 2023).
Machinery and spare parts: $1.1 billion (up from $919 million).
Animal feed and raw materials: $1.02 billion (up from $762 million).
Raw plastics: $784 million (up from $717 million).
Pharmaceuticals: $513 million (up from $393 million).
Fruits and vegetables: $544 million (up from $332 million).

However, imports of certain items declined, such as cotton ($681 million, down from $912 million) and chemicals ($637 million, down from $683 million).

Balancing trade to sustain a strategic partnership

Vietnam has maintained a significant trade surplus with the US for years, frequently appearing on US currency manipulation watchlists.

The US evaluates potential currency manipulation based on three criteria:

Bilateral trade surplus with the US exceeding $15 billion.
Current account surplus above 3% of GDP.
Prolonged one-sided intervention in the foreign exchange market.

If a trading partner exceeds two of these criteria, it is placed on the US "watchlist" and remains there for at least two reporting cycles.

As of November 2024, the US Treasury continued to affirm that Vietnam does not manipulate its currency. The Treasury commended Vietnam’s monetary policies and bilateral cooperation.

Vietnam’s bilateral trade surplus with the US reached $104.4 billion in 2024, driven by electronic goods and machinery exports. Vietnam is the US’s third-largest trade surplus partner, following China and Mexico.

Being labeled a currency manipulator would prevent Vietnam from engaging in US government contracts and could result in tariffs or other trade barriers.

To mitigate these risks, Vietnam has increased imports from the US, focusing on critical goods such as thermal power machinery, high-tech equipment, and Boeing aircraft.

By collaborating with leading US companies like Nvidia, Apple, and SpaceX, Vietnam aims to enhance domestic economic efficiency while fostering long-term trade balance and sustainable development.

Manh Ha