Vietnam has a $200M trade surplus in July
Uh oh. Pres. Trump is watching
Vietnam is reporting a trade surplus in July of $200M. That comes after a $400M surplus in June
The US Treasury Department completes a review twice every year on the currency practices of foreign governments and declined to label any as manipulators.
- Exports increased 9.3% vs a year ago
- Imports rose by only 5% vs a year ago.
However the treasury also maintains a watchlist that serves as formal notice that countries have practices considered suspect.
The most recent watchlist included China, Germany (despite the fact that they use the EURo which is interesting), South Korea and Japan.
The most recent report change some of the criteria it uses to evaluate manipulation. That added five new countries to the list including Italy, Ireland, Malaysia, Singapore and Vietnam.
Pres. Trump has said that companies are leaving China and moving operations to other countries like Vietnam. I am not sure how that line of thought fits in with the trade deficit in the US, but you can argue that as long as there are other countries with cheaper labor/less regulations and other costs of production, the spaghetti will be moved around the plate to another 'manipulator'