Efforts to Narrow the US-Vietnam Trade Deficit

Vietnam’s trade surplus with the US reached $123.5 billion in 2024, a 20% increase from 2023, prompting the US to impose a 46% tariff on certain goods from Vietnam. To reduce the deficit, both countries are negotiating a trade agreement. Significant orders from Vietnam Airlines, Vietjet, and PV GAS in aviation and gas sectors are key factors. Vietnam Airlines signed a $1.5 billion contract with Pratt & Whitney for 44 A321neo engines, while Vietjet signed a $12.7 billion contract to purchase 100 Boeing 737 MAX aircraft. PV GAS also signed a $1.3 billion memorandum with US partners for the Son My LNG terminal project. These agreements encourage investment and expand cooperation between the two economies.