Ambassador Katherine Tai Commends the Treasury Department and the State Bank of Vietnam for Reaching an Agreement Regarding Vietnam’s Currency Practices

July 19, 2021

WASHINGTON – United States Trade Representative Katherine Tai today released a statement welcoming the Department of the Treasury and the State Bank of Vietnam’s (SBV) agreement to address U.S. concerns about Vietnam’s currency practices. As part of its ongoing modernization, the SBV will allow Vietnam’s currency to move in line with the development of Vietnam’s financial and foreign exchange market and with Vietnam’s economic fundamentals.  Today’s announcement is an outcome of the enhanced bilateral engagement between Treasury and the SBV under the U.S. Trade Facilitation and Trade Enforcement Act of 2015.

“I welcome the joint statement between Treasury Secretary Janet Yellen and the State Bank of Vietnam Governor Nguyen Thi Hong on Vietnam’s currency practices,” said Ambassador Katherine Tai. “Countries should not be able to manipulate their exchange rates to gain an unfair competitive advantage in international trade, and I commend Vietnam for its commitment to addressing our concerns. Vietnam can set an important example for the Indo-Pacific region by allowing its exchange rates to move in line with underlying economic fundamentals.”

As highlighted in the joint statement, Vietnam will continue to increase its exchange rate flexibility over time. The State Bank of Vietnam also committed to continue providing information to Treasury with full transparency so it can conduct thorough analysis and reporting on the SBV’s activities in the foreign exchange market.

In light of Treasury and the SBV having reached agreement to address the concerns regarding Vietnam’s currency policies, USTR, in coordination with Treasury, will monitor Vietnam’s implementation of its commitments and work with Vietnam to ensure that it addresses the acts, policies and practices related to the valuation of its currency that were found actionable in the Section 301 investigation.”