In its semiannual Report to Congress on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the US, the Department reviewed and assessed the policies of major US trading partners that comprise more than 80% of its foreign trade in goods and services, during the four quarters through June 2021.
It concluded that no major US trading partner manipulated the rate of exchange between its currency and the US dollar for purposes of preventing effective balance of payments adjustments or gaining unfair competitive advantage in international trade.
It noted that both Vietnam and Taiwan continue to meet all three criteria under the Trade Facilitation and Trade Enforcement Act of 2015 (the 2015 Act) during the period under review.
The US Department of the Treasury under the then Trump administration labeled Vietnam in December 2020 a currency manipulator, accusing it of improperly intervening in foreign exchange markets to advantage its own exports.
The State Bank of Vietnam shortly affirmed that Vietnam did not manipulate its currency as it did not advocate currency devaluation, both in official statements and in actual operations.
Both sides reached agreement in July 2021 to address the US side’s concerns about Vietnam’s currency practices, and the US side later dropped a plan to impose tariffs on Vietnamese goods to be imported into its market.
In its latest report, the Department of the Treasury said ‘it continues to engage closely with the SBV on Vietnam’s progress in addressing Treasury’s concerns and is satisfied with progress made by Vietnam to date.’
