By Francesco Guarascio
HANOI (Reuters) – The U.S. commerce deficit with Vietnam exceeded $110 billion within the first 11 months of 2024, newest U.S. figures present, as exports from the Southeast Asian industrial hub grew amid a file fall of its foreign money towards the greenback.
The most recent studying, launched on Tuesday by the U.S. statistics company, confirmed a virtually 18% rise within the deficit in contrast with the identical interval the earlier yr. The information confirms the Communist-run nation has the fourth highest business surplus with the USA, topped solely by China, the European Union and Mexico.
The big hole is seen by analysts as a serious danger for the export-reliant nation amid threats from President-elect Donald Trump to impose tariffs of as much as 20% on all U.S. imports.
That danger has been compounded by a pointy fall of Vietnam’s dong in latest months, with the dong buying and selling close to its lowest ever ranges towards the greenback. The development is carefully watched in Washington as Vietnam is likely one of the nations below scrutiny for potential foreign money manipulation.
Vietnam, which counts the U.S. as its greatest market, is house to large export-focussed industrial operations of U.S. multinationals equivalent to Apple (NASDAQ:), Google (NASDAQ:), Nike (NYSE:) and Intel (NASDAQ:).
Newest seasonally adjusted commerce figures present that within the January-November interval Vietnam accrued a business surplus with the U.S. of $111.6 billion, up from $94.8 billion in the identical interval in 2023. Unadjusted knowledge pointed to a bigger hole of $113.1 billion.
In November, the commerce hole expanded by one other $11.3 billion, accelerating from October, as Vietnam’s exports to the U.S. rose, the adjusted knowledge present, presumably supported by the weak dong.
“If the U.S. perceives that Vietnam is deliberately keeping the dong weak to gain an unfair trade advantage, it could trigger renewed accusations of currency manipulation,” stated Leif Schneider, head of worldwide legislation agency Luther in Vietnam.
Trump ended his first time period within the White Home with Treasury declarations of Vietnam and Switzerland as foreign money manipulators over their market interventions to weaken the worth of their currencies.
Vietnam’s central financial institution has stated it was able to intervene within the overseas trade market in case of opposed financial impacts from foreign money strikes, and has bought {dollars} prior to now to strengthen the dong.
On Tuesday, earlier than new commerce figures had been launched, the financial institution stated it could monitor Trump’s insurance policies and modify accordingly.
The dong’s most up-to-date depreciation towards the greenback is broadly consistent with different main currencies.
