The Office of the US Trade Representative (USTR) is not expected to impose trade barriers on Vietnam’s exports, according to the Ministry of Industry and Trade (MoIT).

Production at Channel Well Technology Vietnam in Quang Minh Industrial Park, Hanoi. Photo: Pham Hung

The move came following an agreement reached on July 19 between the US Department of Treasury and the State Bank of Vietnam (SBV) on Vietnam’s monetary policy practices.

“Such decision would have a positive impact on bilateral trade cooperation, which in turn contribute to stable and sustainable US-Vietnam relations for mutual benefits,” stated the MoIT.

According to the MoIT, Vietnam would stay active in cooperating with the US to address the latter’s concern in a comprehensive way to ensure a balanced trade relationship.

The US Department of Treasury on April 17 removed Vietnam, Switzerland, and Taiwan (China) from the list of currency manipulators for the lack of evidence to conclude that the three countries had manipulated their exchange rates for "purposes of preventing effective balance of payments adjustments or gaining unfair competitive advantage in international trade."

SBV’s Governor Nguyen Thi Hong in an online meeting with US Secretary of the Treasury Janet L.Yellen on July 19 affirmed Vietnam’s exchange rate policy is aimed at stabilizing macro-economic conditions and controlling inflation, instead of pursuing unfair trade gains.

For the first six months of this year, the US is Vietnam’s largest export market with a turnover of US$45 billion. Vietnam, meanwhile, has stepped up efforts in purchasing US goods with imports of $7.8 billion for the period, an increase of 11% year-on-year.