Why does the US have a trade deficit with Vietnam?

as trade tensions between the PRC and the United States. The expansion of bilateral trade has resulted in a major increase in the U.S. merchandise trade deficit with Vietnam (see Figure 1). The growth in trade also contributed to other forms of trade friction.

What is the US trade deficit with Vietnam?

2019 : U.S. trade in goods with Vietnam

Month Exports Balance
October 2019 1,066.6 -5,296.0
November 2019 847.1 -4,638.3
December 2019 877.8 -4,894.3
TOTAL 2019 10,860.5 -55,769.5

Why does the US have a trade deficit?

The fundamental cause of a trade deficit is an imbalance between a country’s savings and investment rates. As Harvard’s Martin Feldstein explains, the reason for the deficit can be boiled down to the United States as a whole spending more money than it makes, which results in a current account deficit.

Is Vietnam a trade deficit?

A positive trade balance signifies a trade surplus, while a negative value signifies a trade deficit. In 2019, Vietnam’s trade surplus amounted to around 10.37 billion U.S. dollars.

Vietnam: Trade balance from 2009 to 2019 (in billion U.S. dollars)

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Characteristic Trade balance in billion U.S. dollars

Does the US have a trade agreement with Vietnam?

The U.S.-Vietnam Bilateral Trade Agreement (BTA) is a comprehensive document covering trade in goods, protection of intellectual property rights, trade in services, investment protection, business facilitation and transparency. … The BTA is the most comprehensive trade agreement Vietnam has signed to date.

What is Vietnam’s biggest export?

Economy of Vietnam

Statistics
Ease-of-doing-business rank 70th (easy, 2020)
External
Exports $290.4 billion (2018 est.)
Export goods Electronics, textiles products, machinery, footwear products, transportation products, wooden products, seafood products, steel, crude oil, pepper, rice and coffee

What is the main industry in Vietnam?

Main Sectors of Industry

Vietnam’s economy is based on large state-owned industries such as textiles, food, furniture, plastics and paper as well as tourism and telecommunications. Agriculture represented 14% of GDP and employs 36% of the total workforce in 2020 (World Bank).

What 5 Nations does the US have the biggest trade deficit with?

Year-to-Date Deficits

Rank Country Deficit
1 China -130.7
2 Mexico -44.0
3 Vietnam -34.9
4 Germany -27.8

Does the US have the largest trade deficit in history?

It also happened during the presidency of George W. Bush. But there’s one important difference. During the three years in the Bush Administration when the deficit topped $800 billion, overall U.S. trade set successive records, including topping $3 trillion for the first time.

What country does the US have the largest trade deficit with?

The largest deficit in goods in the United States is with China. In fact, over 65% of the trade deficit – or $419 billion – is because of imports from China. The main imports that the US purchased from China include clothing, machinery, and electronics.

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Who is Vietnam’s biggest trading partner?

China is Vietnam’s leading trading partner with a total import and export value of US$106.7 billion, making up 22.2% the country’s total imports and exports.

What is Vietnam’s main import?

Vietnam main imports are computers, electrical products and parts (18 percent of total imports) and machine, instruments and accessories (16 percent). Others include: telephones, mobile phones and parts thereof (8 percent); textile fabrics (5 percent) and iron and steel (4 percent).

What products are made in Vietnam?

Made in Vietnam: The Country’s Top 10 Exports

  • Electrical equipment. …
  • Footwear. …
  • Electronics. …
  • Clothing. …
  • Coffee. …
  • Fish. …
  • Crude petroleum. …
  • Leather.

Are the US and Vietnam still enemies?

As such, despite their historical past, today Vietnam is considered to be a potential ally of the United States, especially in the geopolitical context of the territorial disputes in the South China Sea and in containment of Chinese expansionism.

Why did the US get involved in Vietnam?

China had become communist in 1949 and communists were in control of North Vietnam. The USA was afraid that communism would spread to South Vietnam and then the rest of Asia. It decided to send money, supplies and military advisers to help the South Vietnamese Government.

What lessons did we learn from the Vietnam War?

What were the lessons from Vietnam? The lessons that we learned from Vietnam is to not get involved in a war that isn’t worth fighting for. Also we learned that we are not unstoppable and people or countries are able to defeat us.

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Notes from the road