Ministry of Foreign Affairs welcomes US assessment that Vietnam is not manipulating currency

At the Foreign Ministry press conference this afternoon, November 21, regarding the information that the US Treasury Department released a semi-annual report on "Macroeconomic and foreign exchange policies of major trading partners with the US", Spokesperson Pham Thu Hang said:

"Vietnam appreciates the US Treasury's conclusion that no trade partner, including Vietnam, intervenes in exchange rates to affect the balance of payments or gain unfair competitive advantages in international trade in the semi-annual report on " Macroeconomic and foreign exchange policies of major trade partners with the US".

According to the Foreign Ministry spokesman, over the past time, on the basis of the comprehensive strategic partnership between the two countries, economic and trade relations between Vietnam and the US have achieved good results.

"In the coming time, Vietnamese authorities will continue to maintain close cooperation, regular and effective exchanges with the US Treasury Department to further enhance understanding, contributing to promoting stable and sustainable economic relations, meeting the interests of the people of the two countries," Ms. Pham Thu Hang affirmed.

Foreign Ministry Spokesperson Pham Thu Hang. Photo: Viet Anh

According to information from the State Bank, the Semi-Annual Report on "Macroeconomic and Foreign Exchange Policies of Major Trading Partners with the US" reviewed and evaluated the policies of major trading partners, contributing about 78% of international trade with the country in the past 4 quarters, up to June 2024.

The three criteria set by the US Treasury Department when considering the possibility of currency manipulation by major trading partners include: bilateral trade surplus with the US, current account surplus, and one-sided, persistent intervention in the foreign exchange market.

The first two criteria include a bilateral trade surplus with the US of no more than 15 billion USD and a current account surplus of no more than 3% of GDP. The third criterion is based on the total net foreign currency purchases by the central bank over 12 months.

A country whose economy exceeds two of the three criteria above will be placed on the US "monitoring list". That country will also continue on this list for at least the next two reporting periods.

This report concluded that no trading partner intervened in the exchange rate to influence the balance of payments or gain an unfair competitive advantage in international trade. Vietnam, along with 7 economies such as China, Japan, South Korea, Taiwan (China), Singapore and Germany, are on the "monitoring list" when they have 2 criteria exceeding the threshold, including bilateral goods surplus and current account surplus.

Source: https://kinhtedothi.vn/bo-ngoai-giao-hoan-nghenh-my-danh-gia-viet-nam-khong-thao-tung-tien-te.html