The headquarters of the State Bank of Việt Nam. The Office of the US Trade Representative will not take any tariff action against Việt Nam. — VNA/VNS Photo Trần Việt

WASHINGTON — The Office of the US Trade Representative (USTR) on Friday issued a formal determination in the Việt Nam Currency Section 301 investigation, under which the agency will not take any tariff action against Việt Nam.

A statement by the USTR said the move reflects the agreement reached earlier this week between the US Department of the Treasury and the State Bank of Việt Nam (SBV). 

The determination finds that the agreement between the US Department of the Treasury and SBV provides a satisfactory resolution of the matter subject to investigation and that no trade action is warranted at this time. The USTR, in co-ordination with the US Department of the Treasury, will monitor Việt Nam’s implementation going forward, it said. 

US Trade Representative Katherine Tai commended Việt Nam for its commitment to addressing the US's concerns with its currency practices and setting an important example for the Indo-Pacific region. 

American workers and businesses are stronger when their partners value their currency fairly and compete on a level playing field, she said, adding that in coordination with the US Department of the Treasury, the US will work with Việt Nam to ensure implementation, and will continue to examine the currency practices of other major trading partners. 

Earlier this week, the US Department of the Treasury and SBV reached an agreement to address the US’s concerns about Việt Nam’s currency practices.

A joint statement by the US Department of the Treasury and SBV said that SBV Governor Nguyễn Thị Hồng and US Secretary of the Treasury Janet L. Yellen held a virtual meeting to discuss the issue.

The US Department of the Treasury and SBV have had constructive discussions in recent months through the enhanced engagement process, and reached an agreement to address the US Department of the Treasury’s concerns about Việt Nam’s currency practices as described in the US Department of the Treasury’s Report to Congress on the Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the US.

Việt Nam confirmed that it is bound under the Articles of Agreement of the International Monetary Fund (IMF) to avoid manipulating its exchange rate in order to prevent effective balance of payments adjustment or to gain an unfair competitive advantage and will refrain from any competitive devaluation of the Vietnamese đồng.

SBV is also making ongoing efforts to further modernise and make more transparent its monetary policy and exchange rate framework.

SBV will continue to provide necessary information for the US Department of the Treasury to conduct thorough analysis and reporting on SBV’s activities in the foreign exchange market in the US Department of the Treasury’s Semiannual Report to Congress on the Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the US. — VNS