Vietnam’s Prime Minister Nguyen Xuan Phuc, in an effort to refute U.S. concerns that it is undervaluing its currency for trade gains, asked the Trump administration to “have a more objective assessment of reality in Vietnam.”
Phuc, in a Hanoi meeting with Adam Boehler, head of the U.S. International Development Finance Corporation, said Vietnam does not use its exchange rates “to create a competitive advantage in international trade” or to support any manufacturing sectors, according to a statement on the government’s website. The government’s goal is to maintain economic stability, he said.
The Trump administration earlier this month announced it was opening a trade investigation into Vietnam’s currency policy to determine whether an undervalued dong hurts U.S. businesses.
Devaluing Vietnam’s currency to boost exports would “seriously hurt macroeconomic stability, people’s and investors’ confidence” while damaging the nation’s economy, Phuc said. He asked the U.S. government to work with Vietnam to reduce the Southeast Asian country’s trade surplus with America, according to the statement.
