70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Banking & Finance
Vietnam PM dismisses deliberate devaluation of currency
Ngoc Thuy 17:03, 2020/10/26
A devaluation of the VND would have serious consequences on macro-economic stability, the trust of investors and the people, resulting in a big loss to the economy, Prime Minister Nguyen Xuan Phuc has said.

Vietnam’s flexible management of its monetary policy is to ensure a stable macro-economic environment and mitigates negative impacts from external shocks to the economy, not for unfair trade gains or to support any specific sectors, according to Prime Minister Nguyen Xuan Phuc.

 Prime Minister Nguyen Xuan Phuc. Source: VGP. 

In fact, a devaluation of the Vietnamese dong (VND) would have serious consequences on macro-economic stability, the trust of investors and the people, resulting in a big loss to the economy, Mr. Phuc said in a meeting with a US delegation led by US International Development Finance Corporation (DFC) CEO Adam Boehler on October 26.

The Vietnam PM asked Mr. Boehler to send the message to US President Donald Trump, the Office of the US Trade Representative (USTR) and other agencies in supporting Vietnam to realize the joint action plan agreed late 2019 towards a more balanced trade relationship between the two countries.

Mr. Phuc expected the US to have a more objective view from Vietnam’s perspective to ensure mutual benefits that are in line with US commitment for a strong, independent and prosperous Vietnam.

In early October, the USTR announced its decision to initiate an investigation to determine whether an undervalued VND may cause negative impacts on US commerce.  

 Overview of the meeting. Source: VGP. 

In this regard, Mr. Boehler said the US pays attention to monetary and exchange rate policies of its trading partners, and is willing to work with Vietnamese agencies to resolve the issue.

Mr. Boehler informed the DFC is planning for a major investment in Vietnam and US Export – Import Bank (US Eximbank) would facilitate business plans in the country soon, especially in the fields of renewable energy, transportation, healthcare, agriculture, 5G, among others.

As the Vietnam – US relations are growing strongly, the US is committed to continue supporting Vietnam in various fields, including the latter’s view on the South China Sea.

Prime Minister Phuc said the US remains Vietnam’s partner of top priority and expects to further its comprehensive partnership with the US, especially in trade and investment.

Since 1995, bilateral trade has increased by 170-fold, and US export growth to Vietnam is among the highest among its trading partners in Southeast Asia.

Moreover, the US is among top 10 largest investors in Vietnam. The Vietnamese government gives priority to supporting US enterprises doing long-term business in the country, stated Mr. Phuc, adding Vietnam is open its door for US investors amid a shift in regional supply chains.

Mr. Phuc proposed DFC soon invest in major projects in Vietnam, including the North – South expressway or Long Thanh International Airport.

RELATED NEWS
TAG: Vietnam United States Vietnamese dong vnd devaluation Nguyen Xuan Phuc USTR DFC Long Thanh International Airport US Eximbank
Other news
18:20, 2024/05/09
Vietnam's non-cash payments reach US$9.8 trillion, 23 times GDP
Many of the banking industry's digital transformation goals for 2025 are on track to be met or exceeded.
21:53, 2024/05/04
PM urges Central bank to ensure positive growth in 2024
Local lenders are encouraged to provide incentives and attract individuals to take out consumer loans.
17:07, 2024/05/03
Vietnamese Gov't to continue VAT cut for second half of 2024
If the VAT reduction policy is continued for the last six months of the year, the total revenue loss for 2024 is projected to be approximately VND47.5 trillion (US$1.87 billion).
21:54, 2024/04/23
3,400 taels of gold purchased at the first-in-11-year auction
Gold trading firm SJC and lender ACB are the two successful bidders at the auction held today.
16:19, 2024/04/22
HoSE to launch KRX-developed transaction system in early May
Brokerage firms are expected to prepare data for the transition to the new system.
15:23, 2024/04/22
Central bank moves gold auction to tomorrow
The auction was postponed due to a lack of bidders and escrow deposits.