Security likely to outweigh US-Vietnam trade ties
Significance The load was primarily symbolic, of Hanoi’s response to pressure from Washington to reduce Vietnam's 38.3-billion-dollar (2017) trade surplus with the United States, although there are likely to be further imports in this sector, including of soybeans. However, US-Vietnam trade ties face tensions: Vietnam is disillusioned that President Donald Trump withdrew from the Trans-Pacific Partnership (TPP); his subsequent reaffirmation of that decision reinforces Hanoi’s nervousness that the Trump administration will continue to take a hard line on trade. Impacts The Trump team will likely be keen to explore further new arms sales opportunities in Vietnam. Despite stronger Vietnam-Russia ties, Moscow will mostly be an arms source: Russia has limited money and resources for South-east Asia. Further Vietnamese regulatory reform and infrastructure improvements could reduce Vietnam’s US trade surplus. For the foreseeable future, India will lag China in deepening South-east Asian ties economically and militarily.