The recent dialogue between U.S. Secretary of State Marco Rubio and Vietnam’s Deputy Prime Minister and Foreign Minister Bui Thanh Son marks a significant moment in the evolution of U.S.-Vietnam relations. This discussion, occurring shortly after the inauguration of the Trump administration, sheds light on both nations’ commitment to reinforcing their ties and addressing difficult economic and geopolitical issues. With 2023 marking the 30th anniversary of diplomatic relations, both countries are poised to tackle the challenges and opportunities that lie ahead.
Central to the conversation was the pressing issue of trade imbalances, with Secretary Rubio urging Vietnam to take steps to address the evident disparities in economic exchange. The U.S. trade deficit with Vietnam ballooned to over $110 billion in the first 11 months, emphasizing the growing economic intertwined nature of the two countries. This spike results from Vietnam’s remarkable export growth, alongside the notable depreciation of its currency against the dollar. While the burgeoning economic cooperation poses mutual benefits, the extensive trade deficit raises flags, especially as trade policies under the Trump administration took a more protectionist turn, warning of potential tariffs on imports from nations exhibiting large trade surpluses.
This relationship is crucial for Vietnam, which has increasingly relied on its exports, primarily fuelled by the significant investments of U.S. multinationals like Apple, Google, and Nike. As the largest market for Vietnamese goods, the U.S. plays an instrumental role in Vietnam’s economic stability. However, analysts warn that if trade policies become adversarial, it could threaten Vietnam’s export-driven economy, making it vital for Vietnam to explore strategies to balance the trade scales.
Apart from economic discussions, regional security dynamics, especially related to the actions of China, were pertinent topics during the call. Both Rubio and Son voiced concerns over China’s assertive posture in the South China Sea, an area rife with territorial disputes. This alignment of interests signifies a growing partnership in addressing broader security dilemmas. With Vietnam’s strategic location, the collaboration with the U.S. strengthens its position against external pressures exerted by larger regional powers.
Vietnam’s response to China’s aggressive maneuvers will be instrumental in shaping its foreign policy and its reliance on U.S. support as a counterbalance. The resurgence of Vietnam as a key player in the Asia-Pacific geopolitics benefits not only its national security but also serves U.S. interests in sustaining a presence in the region that counters China’s influence.
As the newly minted Secretary of State begins his tenure, the dialogue with Vietnam encapsulates critical aspects of the U.S.’s foreign policy in Asia. Addressing trade imbalances will be as crucial as managing geopolitical tensions, especially with a rising China. Both nations stand at a crossroads where economic cooperation must meld with strategic partnerships to navigate future challenges. The coming years will be pivotal for U.S.-Vietnam relations as they work together to fortify their bond in an increasingly complex global landscape.