Specifically, respond to the question of the reporter to indicate the response of Vietnam to the Report published on April 16, 2021 by the US Department of Finance on “Partners’ foreign exchange and macroeconomic policies. major US trade ”, Foreign Ministry Spokesperson Le Thi Thu Hang stated:
“In the morning of April 17, 2021, the State Bank had specific information on this issue. We welcome the positive adjustment to the contents related to Vietnam in the above report, according to which the US Department of Finance assesses, there is not enough basis to determine the currency manipulation of Vietnam.
In recent years, the relevant Vietnamese agencies have exchanged information and consulted with the United States to clarify the exchange rate policy of Vietnam, which is operated in a synchronous, flexible and consistent manner by management agencies. Vietnam is in line with Vietnam’s reality in order to stabilize the macro balance, not to create an unfair competitive advantage in international trade.
In the spirit of the economic-trade relationship with the United States, a pillar of the Comprehensive Partnership between the two countries, Vietnam will maintain a constructive dialogue and consultation with the United States on this issue. “.
The United States removed Vietnam from the list of currency manipulation countries.
As the Quality of Vietnam Online reported, on the morning of April 17, the State Bank announced: On April 16, 2021, the US Department of Finance issued a Report on “Foreign and Macroeconomic Policy. exchange of major trading partners of the United States ”.
Accordingly, the US Department of Finance has included in the Supervisory List of 11 economies (meeting from 1 to 2 criteria specified by the US BTC): China, Japan, South Korea, Germany, Ai -len, Italy, India, Malaysia, Singapore, Thailand and Mexico. Switzerland, Taiwan and Vietnam meet 3 criteria.
The above list of economies is determined on the basis of the provisions of the Trade Facilitation and Enforcement Act 2015. The US BTC considers trading partners to meet the following criteria: (i) the bilateral merchandise trade surplus with the United States is at least 20 billion USD; (ii) Current account surplus is equivalent to at least 2% of GDP; (iii) One-way and prolonged intervention in the foreign currency market, represented 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.
In this report, on the basis of initial contact with Vietnam as well as on data and in-depth analysis, the US Department of Finance determined that in the period of 2020, there is not enough evidence or signs for that Vietnam manipulates currency in accordance with the Omnibus International Trade and Competition Act 1988.
During the working process with the US Department of Finance, the State Bank of Vietnam has been frankly exchanging in the spirit of cooperation, goodwill from technical level to high level, affirming the exchange rate management over the years – within the framework of the general monetary policy – to achieve the consistent goal of controlling inflation, stabilizing the macro-economy, not to create an unfair competitive advantage in international trade.
Over the past time, the State Bank has 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 State Bank’s operations have been recognized by the US Department of Finance.
The State Bank of Vietnam will continue to actively coordinate with concerned ministries and branches to exchange and work on issues that the United States is interested in in the spirit of cooperation, mutual benefit, towards trade relationship. trade in harmony and sustainability.
At the same time, the State Bank continued to operate monetary policy to control inflation, stabilize the macro-economy, support economic growth in a reasonable manner, manage exchange rates flexibly, in line with the macro balance, market developments and monetary policy goals, are not aimed at creating an unfair international trade competitive advantage.