Vietnam seeks US business ties, moves to ease trade surplus concerns

File Source: CSIS

Vietnam is actively courting American businesses while taking steps to address its growing trade surplus with the United States. Over the weekend, Prime Minister Pham Minh Chinh met with about 40 U.S. business leaders in Hanoi, emphasizing Vietnam’s commitment to economic cooperation amid evolving U.S. trade policies under President Donald Trump.

According to Vietnam’s state-run *Tuoi Tre* news site, Chinh assured executives that his government is looking to reduce its record-high trade surplus of $124 billion with the U.S. by increasing imports of key American goods, including aircraft, arms, natural gas, and pharmaceuticals. The U.S. remains Vietnam’s largest export market in 2024, and Hanoi is keen to avoid the fate of neighboring China, which has faced 20% tariffs on its exports due to trade imbalances and accusations of illegal synthetic opioid exports.

Vietnam is already grappling with U.S. tariffs on its steel and aluminum exports. A recent executive order by Trump will raise the current 10% tax on these metals to 25% starting March 12. Vietnam ranks as the fifth-largest steel exporter to the U.S., while America is the country’s third-largest buyer.

Meanwhile, Chinh signaled his administration’s eagerness to facilitate the entry of U.S. tech investments, particularly Elon Musk’s Starlink satellite internet service. “The PM has directed the Ministry of Science and Technology to quickly issue a license to Starlink internet on a trial basis,” the government stated on its website following the meeting.

Starlink’s parent company, SpaceX, has long expressed interest in Vietnam’s 100-million-strong market but has faced regulatory hurdles. Until recently, foreign firms were restricted from owning more than 49% of shares in local internet ventures. However, a temporary scheme approved by Vietnam’s parliament last month allows internet companies to fully control their local subsidiaries. U.S. executives attending the meeting expressed optimism that Hanoi would relax investment restrictions in other sectors as well.

In a separate engagement on Sunday, Chinh met with European business leaders, encouraging them to increase their investments in Vietnam. According to VoVWorld, he urged EU enterprises to focus on high-growth sectors such as digital transformation, the green economy, and healthcare.

Vietnam’s trade surplus with the European Union reached $35 billion in 2024, with exports rising nearly 19% compared to the previous year. A free trade agreement between Vietnam and the EU, which took effect in 2020, has positioned Vietnam as the bloc’s leading trade partner in Southeast Asia.