Vietnam does not devaluate currency, US need to take an objective assessment!

Vietnamese Prime Minister Nguyễn Xuân Phúc on Monday told the visiting CEO of the US International Development Finance Corporation Adam Boehler that Việt Nam does not devalue its currency to generate an unfair trade advantage.

The high-level delegation visit – including representatives from the US Department of Treasury (USDT), Department of Commerce, and the US Export-Import Bank (US EximBank) – takes place as the US Government earlier launched a currency manipulation investigation against Việt Nam which it deemed causing harms to US commerce given the large trade surplus with the US, an allegation Việt Nam has strongly disputed.

The Vietnamese Government leader stressed that it is not the purpose of Việt Nam’s currency policies to create a competitive advantage for exports in international trade or support specific industries, in addition to the fact that currency devaluation could undermine its macroeconomic stability, people’s trust and investors’ confidence, resulting in “great harm to the economy.”

PM Phúc affirmed that Việt Nam aims to maintain financial stability, prevent shocks and limit impacts from external factors through flexible management of currency tools.

The State Bank of Việt Nam manages the exchange rate policy within the framework of a general monetary policy in order to achieve the overarching goal of maintaining macroeconomic stability.

PM Phúc asked the Director General of DFC to “have talks” with the President of the United States Donald Trump, the US Trade Representative (USTR) and other US agencies to assist Việt Nam in implementing the Action Plan towards balanced trade that was agreed by the two sides at the end of 2019 and have a more “objective assessment of the real situation in Việt Nam” to serve the end goal of appropriate bilateral cooperation, mutual benefit, mutual development in line with the US commitments to a strong, independent and prosperous Việt Nam, and the US-Việt Nam Comprehensive Partnership.

Despite the impacts of the COVID-19 pandemic, the two countries’ relations in recent times continued to flourish, with the highest level leaders maintaining meaningful exchanges via letters and telephone conversations as well as delegation exchanges, PM Phúc said.

He noted that the Vietnamese Government always supports and accompanies the business communities of the two countries in orientating, connecting, and improving investment efficiency.

Ministries, sectors, and localities in Việt Nam create the most favourable conditions possible for US businesses to invest and do business in the country, he added, asking that the DFC soon invest in major projects, such as the North-South Expressway and Long Thành International Airport, the Vietnamese Government leader remarked.

The PM emphasised that Việt Nam attaches great importance to and highly values the US’ active participation in the US-Mekong Partnership.

The DFC’s investment expansion into the Mekong region will be the foundation for building a dynamic, resilient, and sustainable Mekong region and a strong ASEAN, he noted.

Việt Nam and the US are co-chairs of the US-Mekong Partnership in 2020, so it is necessary to organise a summit shortly, he said.

He suggested that the DFC and relevant Vietnamese agencies identify investment opportunities in potential infrastructure and energy projects and those with high technology content in Viet Nam and the Mekong region.

For his part, Adam Boehler said he is glad to visit Việt Nam and conveyed the greetings from US President Donald Trump to PM Phúc.

This overseas visit comprises an unprecedented number of representatives from many sectors and industries, Boehler noted.

Two-way trade between Việt Nam and the US has increased more than 170-fold since 1995. US exports to Việt Nam are growing at the fastest rate of all its Southeast Asian partners. Many US businesses are investing and doing business in Việt Nam, with the US among the 10 largest investment partners in the Southeast Asian country./.