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2025-09-19 10:52:25
[Vietnam is guiding the Vietnamese Dong to depreciate in response to the threat of US tariffs, which may result in the largest annual drop in 14 years] Faced with US President Trump's trade tariff policy, Vietnam is adopting the traditional strategy of currency devaluation to gain a competitive advantage among Southeast Asian countries. Exchange rate pricing data from the State Bank of Vietnam shows that the country has been steadily guiding the Vietnamese Dong to weaken this year. According to data compiled by the agency, the daily reference exchange rate of the US dollar against the Vietnamese Dong has climbed by about 3.5% in 2025 and is expected to record the largest annual increase since 2011. The Vietnamese Dong is currently trading close to its historical low set in August, and analysts predict that the Vietnamese Dong will depreciate further as the central bank maintains a weak exchange rate tendency. Darren Tay, head of Asia-Pacific country risk at BMI, a subsidiary of Fitch Solutions, said: "Gradually guiding the devaluation of the Vietnamese Dong will enable Vietnam to slowly regain its trade competitiveness in the US market." BMI predicts that by the end of 2025, the Vietnamese Dong exchange rate will fall to 27,000 to 1 US dollar
