In its latest semiannual report, the U.S. Treasury again confirmed that Vietnam is not manipulating currency. However, Vietnam remains on the monitoring list alongside eight other major trade partners due to exceeding two of three thresholds set by the U.S.
No Currency Manipulation Found, Vietnam Still on Monitoring List
The U.S. Treasury Department has released its biannual report on the macroeconomic and foreign exchange policies of America's top trading partners, reaffirming that Vietnam is not manipulating its currency.
Covering 20 major trade partners accounting for 78% of U.S. international trade in the four quarters ending December 2024, the report assesses each economy against three criteria:
- A bilateral goods trade surplus with the U.S. of more than $15 billion
- A current account surplus exceeding 3% of GDP
- Persistent, one-sided net foreign exchange purchases exceeding 2% of GDP over 12 months
Vietnam exceeded two of these thresholds, its bilateral trade surplus with the U.S. and its current account surplus, placing it on the Treasury’s monitoring list. Alongside Vietnam are China, Japan, South Korea, Taiwan, Singapore, Germany, Ireland, and Switzerland. Except for Ireland and Switzerland, all these economies were also on the previous monitoring list in November 2024.
Trade and Surplus Trends
Vietnam's trade surplus with the U.S. whom its largest export market, has grown significantly over the past six years, especially due to exports of electronics and machinery.
In terms of current account balance, which includes trade in goods and services, labor income, and investment earnings, Vietnam posted a 6.1% surplus relative to GDP over the 12-month period ending December 2024. This marks a strong rebound from COVID-related trade disruptions in 2021–2022.
Vietnam’s Exchange Rate and Foreign Reserves Policy
The Treasury also noted that Vietnam’s central bank sold approximately $9 billion in foreign currency in 2024, equal to about 1.9% of GDP. This move, aimed at stabilizing the Vietnamese đồng amid global macroeconomic pressures, marked a reversal from Vietnam's earlier years (2016–2021) of net foreign currency purchases. As of the end of 2024, Vietnam’s foreign reserves stood at $81.2 billion.
U.S. Acknowledges Vietnam’s Policy Transparency Efforts
The U.S. highlighted Vietnam’s continued progress in modernizing and increasing transparency in its monetary and exchange rate policies. This recognition was also emphasized in the Joint Statement upgrading U.S.-Vietnam relations to a Comprehensive Strategic Partnership in 2023.
Vietnam’s central bank has pledged to maintain close cooperation with U.S. Treasury officials, actively engaging in regular communication channels to enhance mutual understanding, share information, and swiftly resolve any emerging economic concerns.
(according to Vietnam National State Bank, estimation from U.S. Department of the Treasury)