The US Treasury has stopped short of naming Vietnam a currency manipulator, but has continued to flag several key concerns over how the dong is managed, according to its June 2025 Report to Congress on Macroeconomic and Foreign Exchange Policies.
Key details:
- While the State Bank of Vietnam (SBV) has reversed its historic pattern of one-sided FX purchases, the dong still depreciated by 4.5 percent in 2024 and a further 2.4 percent in early 2025.
- Treasury estimates Vietnam’s net FX sales reached 1.9 percent of GDP (around US$9 billion), aimed at stabilising the dong amid external pressures.
- The Treasury also notes Vietnam’s large current account surplus (6.1 percent of GDP), and a US$123 billion goods trade surplus with the US—third largest globally.
- Lower levels of corporate profit repatriation have also contributed to the current account surplus.
- The Treasury has urged more exchange rate flexibility and a shift to inflation targeting.
Vietnam remains on the Treasury’s radar due to its persistent external surpluses and significant bilateral imbalance with the US.
While recent FX interventions suggest a more balanced approach, the report signals ongoing concerns about transparency, monetary autonomy, and structural imbalances—issues that could weigh on future investment sentiment and trade relations if not addressed.
See also: The Dong’s Wild Ride: Unpacked