In this Report, on the basis of initial contact with Vietnam as well as on further data and analysis, the US Treasury Department determined that in the period of 2020, there is not enough evidence or signs that Vietnam manipulates currency in accordance with the Omnibus International Trade and Competition Act 1988.
“In the process of working with the US Treasury Department, the State Bank has frankly exchanged in the spirit of cooperation and goodwill, affirming the exchange rate management in recent years, within the framework of the general monetary policy, in order to implement The consistent goal is to control inflation, stabilize the macro-economy, not to create an unfair competitive advantage in international trade “, the State Bank affirmed
Recently, the State Bank of Vietnam has also applied solutions to gradually improve the flexibility of the exchange rate while maintaining stable and smooth operation of the foreign currency market. The positive developments in the foreign currency market as well as in the SBV’s operations were recorded by the US Treasury Department.
In the future, the State Bank of Vietnam commits to continue to actively coordinate with relevant ministries and agencies to exchange and work on issues that the US is concerned about in the spirit of cooperation, mutual benefit, and progress towards a harmonious and sustainable trade system.
At the same time, the SBV continues to operate monetary policy to control inflation, stabilize the macroeconomics, support economic growth in a reasonable way, operate the exchange rate flexibly, in accordance with macro balances, market developments and monetary policy objectives, not to create an unfair international trade competitive advantage.
Previously, at the end of last year, the US Department of Finance put in a supervisory list of 11 economies (meeting from 1 to 2 criteria according to this agency’s regulations) including China, Japan, South Korea, Germany, Ireland, Italy, India, Malaysia, Singapore, Thailand and Mexico. Particularly Switzerland, Taiwan and Vietnam meet 3 criteria.
The above list of countries is determined on the basis of the provisions of the Trade Enforcement and Facilitation Act of 2015.
Accordingly, the US Treasury Department considers commercial partners to meet the following 3 criteria.
First, the bilateral merchandise trade surplus with the US is at least $ 20 billion.
Second, the current account surplus is equivalent to at least 2% of GDP.
Third, one-way and prolonged intervention in the foreign exchange market, reflected by net buying of foreign currency for at least 6 months over a 12-month period with total net buying of foreign currencies equivalent to at least 2% of GDP in the period. 12 month period.
Source: vietnambiz.vn – Translated by fintel.vn