The Vietnam-US economic relationship continues to grow, with 2024 goods trade reaching $149.6 billion and US services exports to Vietnam totaling $2.4 billion. Supported by major agreements like the TIFA and BTA, US FDI has surpassed $12 billion in over 1,300 projects, while a new strategic partnership and paused tariffs show deepening cooperation.
Vietnam and the US have strong ties. They started diplomatic relations in 1995. Since then, both countries have worked together on trade, investment, and more. Their bond grew stronger with the Comprehensive Strategic Partnership in 2023. Despite a proposed 46% tariff on Vietnamese imports, the US paused this plan for 90 days. The economic relationship keeps growing. Vietnam is the US’s eighth-largest trade partner. The US is Vietnam’s second-largest trade partner and top export market. This article covers the latest trade and investment data. It also explains key bilateral agreements.
Diplomatic relations
Vietnam and the US began diplomatic relations in 1995. This was a big step. They quickly expanded cooperation. The US opened an embassy in Hanoi. Vietnam opened one in Washington, D.C. In 1997, the US appointed its first resident ambassador to Vietnam. This strengthened ties.
Key visits boosted the relationship. In 2000, President Bill Clinton visited Vietnam. This was historic. In 2013, both countries signed a comprehensive partnership agreement. It covered trade, education, and security. In 2015, General Secretary Nguyen Phu Trong visited the US. It was the first visit by a top Vietnamese leader since 1995.
In September 2023, General Secretary Nguyen Phu Trong and President Joe Biden met in Hanoi. They formed the Comprehensive Strategic Partnership. It focuses on peace, cooperation, and sustainable development. The US supports Vietnam as a strong, independent, and prosperous nation.
Related News
Trade and investment
Vietnam and the US have strong trade ties. These have grown over time. Several agreements support this growth.
Vietnam-US trade data
In 2024, US goods trade with Vietnam reached $149.6 billion. US exports to Vietnam were $13.1 billion. This was a 32.9% increase ($3.2 billion) from 2023. US imports from Vietnam totaled $136.6 billion. This was a 19.3% increase ($22.1 billion) from 2023. The US trade deficit with Vietnam grew to $123.5 billion in 2024. This was an 18.1% increase ($18.9 billion) over 2023.
Here’s a table of Vietnam-US trade in goods from 2019 to 2024 ($ billion):
|
Year
|
US exports to Vietnam
|
US imports from Vietnam
|
|
2019
|
13.5
|
67.68
|
|
2020
|
12.35
|
80.04
|
|
2021
|
12.93
|
102.39
|
|
2022
|
13.78
|
128.36
|
|
2023
|
12.82
|
115.8
|
|
2024
|
13.1
|
136.6
|
Vietnam’s key exports to the US, Q1 2025
In Q1 2025, Vietnam’s exports to the US totaled $31.39 billion. Here are the main items:
|
Items
|
Value ($ billion)
|
Proportion
|
|
Total
|
31.39
|
100%
|
|
Computers, electrical products, spare parts
|
7.47
|
24%
|
|
Machines, equipment, tools
|
5.26
|
17%
|
|
Textiles and garments
|
3.78
|
12%
|
|
Telephones, mobile phones, parts
|
2.74
|
9%
|
|
Wood and wooden products
|
2.13
|
7%
|
|
Toys, sports requisites, parts
|
2.06
|
7%
|
|
Footwear
|
1.97
|
6%
|
Vietnam’s key imports from the US, Q1 2025
In Q1 2025, Vietnam’s imports from the US totaled $4,096.03 million. Here are the main items:
|
Item
|
Value ($ million)
|
Proportion
|
|
Total
|
4,096.03
|
100%
|
|
Computers, electrical products, spare parts
|
1,360.16
|
33%
|
|
Cotton
|
275.56
|
7%
|
|
Plastics
|
246.04
|
6%
|
|
Machines, equipment, tools
|
240.73
|
6%
|
|
Animal fodder and materials
|
168.51
|
4%
|
|
Soya beans
|
164.37
|
4%
|
|
Fruits and vegetables
|
160.19
|
4%
|
Services trade
In 2022, US services exports to Vietnam reached $2.4 billion. This was a 26.1% increase ($502 million) from 2021. It was a 48% increase from 2012. Key sectors included travel, transportation, and financial services. US services imports from Vietnam were $874 million. This was an 88.0% increase ($409 million) from 2021. It was a 25% rise from 2012. The US had a services trade surplus with Vietnam of $1.6 billion in 2022.
American direct investments in Vietnam
Foreign direct investment (FDI) is crucial for Vietnam. The US is a key investor. By April 2024, US businesses invested over $12 billion in Vietnam. This covered more than 1,300 projects. The US ranks as Vietnam’s 11th largest investor. US firms invested in 17 out of 21 sub-sectors. The accommodation and food service industry made up 42.3% of the total registered capital. Manufacturing and processing accounted for 20.3%. The largest US FDI project is Winvest Investment’s $4.1 billion resort and entertainment venture in Ba Ria – Vung Tau, started in 2007. Major US companies like Apple, Intel, Nike, and Coca-Cola have long-term operations in Vietnam.
Bilateral agreements
US-Vietnam trade and investment framework agreement (TIFA)
In 2007, both countries signed the TIFA. It sets a framework for trade and investment talks. The US-Vietnam Council on Trade and Investment was created. It is co-chaired by the US Trade Representative and Vietnam’s Ministry of Trade. The council monitors trade, finds growth opportunities, and removes barriers. It can form working groups and seek advice from businesses and civil society.
Bilateral Trade Agreement (BTA)
In 2001, Vietnam and the US signed the BTA. It took five years to negotiate. It ensures fair market access for both countries’ products and businesses. The BTA gave Vietnam “conditional most favored nation” status, also called “normal trade relations” (NTR). In 2006, President George W. Bush granted Vietnam permanent normal trade relations (PNTR). This lowered tariffs on Vietnamese goods.
Vietnam agreed to reform its trade and investment rules. In 2001, the US labeled Vietnam a “nonmarket economy” (NME) for antidumping cases. Vietnam wants this status removed. The US Department of Commerce will review this in July 2025.
Vietnam-US double taxation treaty
In 2015, Vietnam and the US signed a double taxation treaty. Vietnam ratified it, but the US did not due to changes in its tax code in 2020. Renegotiation is needed. The treaty covers US federal income taxes and Vietnam’s personal and business income taxes. It includes rules on capital gains taxes, withholding taxes on dividends, interest, and royalties, and limits benefits.
Conclusion
Vietnam and the US have a strong trade relationship. In 2024, goods trade reached $149.6 billion. US FDI in Vietnam is over $12 billion. Agreements like the TIFA and BTA support this growth. The double taxation treaty awaits US ratification. The Comprehensive Strategic Partnership strengthens ties. Both countries benefit from growing trade and investment.
