Dr Huan Huu Nguyen, from the Ho Chi Minh City University of Economics, has told Donah Nhan Vietnam that the VND should be allowed to fluctuate within a greater range and that Vietnam should accept a short-term devaluation. Currently, the dong operates in a trading band of 5 percent either side of a base price set each day by the State Bank of Vietnam. This was 3 percent until it was increased toward the end of last year to accommodate exchange rate pressure.
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