In electrical equipment exports to the United States, competition is mostly between Mexico and the United States, but with Vietnam having the greatest dynamism.
From January to September 2024, China‘s exports were US$39.328 billion and Mexico’s totaled US$35.244 billion.
In both cases, year-on-year growth was at single-digit rates. But in the case of Vietnam, the increase was at a triple-digit rate.
Exports of electrical equipment
These external sales correspond to products related to the manufacture of accessories, electrical appliances and electrical power generation equipment.
Among the products covered by this classification are lamps, minor household appliances, electric motors and generators, and electric conduction cables.
Below are the top suppliers of electrical equipment to the U.S. market from January through September 2024, in millions of dollars, according to Commerce Department data:
- China: 39,328 (+7.7%, at annual rate).
- Mexico: 35,244 (+8.4 percent).
- Vietnam: 9,644 (+124 percent).
- South Korea: 8,393 (-4.7 percent).
- Thailand: 6,561 (+93.8 percent).
- World: 148,750 (+14.4 percent).
Vietnam’s Competitiveness
According to a U.S. Congressional analysis, over the past decade, Vietnam has emerged as a major manufacturing hub and has climbed to become one of the top 10 U.S. trading partners. This growth reflects economic expansion and a strengthening trade relationship between the two countries.
In 2023, U.S.-Vietnam bilateral trade in goods reached $124 billion, which represented an 11% decrease compared to 2022. Despite this drop, trade remains significant, and Vietnam remains a key trading partner.
In terms of the bilateral trade deficit in goods, the United States recorded a $104 billion deficit with Vietnam in 2023, making it the third largest U.S. deficit with a single country. Vietnam is a crucial source of imports for the United States, highlighted by products such as consumer electronics, furniture, semiconductors, automotive parts, apparel, and footwear. In fact, it is the second most important source of apparel for the United States, only after China.
Looking at the evolution of trade in electrical equipment, in 2014, Vietnam’s exports of electrical equipment to the United States were only US$420 million. In contrast, China’s exports in this sector were US$38,753 million and Mexico’s were US$24,255 million.