US to scrutinise Vietnam over alleged currency manipulation

The US government will look into Vietnam’s practices of determining the dong’s exchange rate to the US dollar as is suspects the country of currency manipulation in certain cases involving foreign trade, Bloomberg News referred to insiders.

The inquiry comes after the US Treasury Department in January put Vietnam – alongside Malaysia and Singapore – on a currency manipulator watchlist.

Back in August, the US concluded that Vietnam had manipulated its currency in at least one trade case involving the export of tires to the US. If the new probe comes up with more evidence, it could lead to major trade sanctions against Vietnam.

An announcement could come in a few days, people familiar with the case told the agency. However, it remains unclear whether any trade sanction would be enforced before the US presidential election on November 3, and on which products they would be applied.

Vietnam is major trade partner of the US

Vietnam is among the ten biggest trading partners of the US, even more so that US trade has shifted from China. The goods trade deficit of the US with Vietnam was $39.4 billion in 2018 and rose to $55.7 billion last year, according to US Treasury data. It reached $34.8 billion by July this year, the biggest after the trade deficits of the US with China, Mexico and Switzerland.

Vietnam so far has been seen as one of the few winners of the US-China trade war. Before the coronavirus pandemic hit the global economy in January 2020, forecasts suggested that Vietnam’s economic growth would be higher in 2020 than 2019 because of a steady uptick of production relocations from China.

UPDATE: The Office of the United States Trade Representative later on October 2 confirmed it would launch a currency manipulation investigation under Section 301 of the Trade Act of 1974 into Vietnam – the same process it used to put tariffs on billions of dollars of Chinese imports into the US.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

The US government will look into Vietnam’s practices of determining the dong’s exchange rate to the US dollar as is suspects the country of currency manipulation in certain cases involving foreign trade, Bloomberg News referred to insiders. The inquiry comes after the US Treasury Department in January put Vietnam – alongside Malaysia and Singapore – on a currency manipulator watchlist. Back in August, the US concluded that Vietnam had manipulated its currency in at least one trade case involving the export of tires to the US. If the new probe comes up with more evidence, it could lead to major...

The US government will look into Vietnam’s practices of determining the dong’s exchange rate to the US dollar as is suspects the country of currency manipulation in certain cases involving foreign trade, Bloomberg News referred to insiders.

The inquiry comes after the US Treasury Department in January put Vietnam – alongside Malaysia and Singapore – on a currency manipulator watchlist.

Back in August, the US concluded that Vietnam had manipulated its currency in at least one trade case involving the export of tires to the US. If the new probe comes up with more evidence, it could lead to major trade sanctions against Vietnam.

An announcement could come in a few days, people familiar with the case told the agency. However, it remains unclear whether any trade sanction would be enforced before the US presidential election on November 3, and on which products they would be applied.

Vietnam is major trade partner of the US

Vietnam is among the ten biggest trading partners of the US, even more so that US trade has shifted from China. The goods trade deficit of the US with Vietnam was $39.4 billion in 2018 and rose to $55.7 billion last year, according to US Treasury data. It reached $34.8 billion by July this year, the biggest after the trade deficits of the US with China, Mexico and Switzerland.

Vietnam so far has been seen as one of the few winners of the US-China trade war. Before the coronavirus pandemic hit the global economy in January 2020, forecasts suggested that Vietnam’s economic growth would be higher in 2020 than 2019 because of a steady uptick of production relocations from China.

UPDATE: The Office of the United States Trade Representative later on October 2 confirmed it would launch a currency manipulation investigation under Section 301 of the Trade Act of 1974 into Vietnam – the same process it used to put tariffs on billions of dollars of Chinese imports into the US.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

NO COMMENTS

Leave a Reply