Hanoi (VNA) – The US Treasury Department’s labelling of Vietnam as a currency manipulator is biased, as it is only based on US standards and lacks suitable consideration as well as recommendations from international organisations, according to experts. Vietnam does not depreciate Vietnam dong BIDV Chief Economist Can Van Luc and experts from the BIDV Training and Research Institute described the labelling as a unilateral action that fails to look into the characteristics of Vietnam’s economy and the recommendations of international institutions regarding its economy. Economic tools are necessary for Vietnam to sustainably develop and be resilient to external shocks, they said, adding that such tools are used in accordance with international rules. According to the Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the US report, the US Department of Treasury examined trade partners based on three criteria: a bilateral trade surplus with the US of at least 20 billion USD, a material current account surplus equivalent to at least 2 percent of GDP, and engagement in persistent one-sided intervention in the foreign exchange market, with net purchases of foreign currency conducted in at least six out of 12 months and with net purchases totalling at least 2 percent of GDP over a 12-month period. The US Department of Treasury determined that under the Omnibus Trade and Competitive Act of 1988, Vietnam is a currency manipulator. Truong Van Phuoc, former acting Chairman of the National Financial Supervisory Commission, said there are several points in the Treasury’s report that need to be clarified.
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