Vietnam's $114 billion US trade surplus crowns it top exporter, eclipsing China

In the first half of 2026 Vietnam recorded a $114 billion trade surplus with the United States, surpassing China, Mexico and Taiwan and positioning it to become the top US exporter. The achievement reflects a long-term shift that began with the Doi Moi market reforms of the 1980s, the removal of the US embargo in 1994 and a 2001 bilateral trade agreement, which together lifted two-way trade from $451 million in 1995 to nearly $124 billion by 2023.

Vietnam deliberately built an export-focused manufacturing base, joining regional trade blocs, creating industrial parks and attracting firms like Samsung, Intel, Foxconn, Apple, Nike and Lululemon. As Chinese labor costs rose and US-China tensions grew, many companies adopted a “China-plus-one” approach, relocating production to Vietnam, whose effective US tariff rate of 6.5 percent is far lower than China’s 23.2 percent.

While India’s larger population yields a modest $58.4 billion US trade surplus, Vietnam’s higher labor-force participation and rapid shift away from agriculture have driven a trade-to-GDP ratio near 170 percent, according to the World Bank. The trend underscores Vietnam’s emergence as a key supplier in US supply chains and a model for other developing economies.