The U.S. Trade Representative's office has determined that no tariff action is warranted against Vietnam after its central bank agreed to refrain from the "competitive devaluation" of the dong. "I commend Vietnam for its commitment to addressing U.S. concerns with its currency practices," U.S. Trade Representative Katherine Tai said in a statement.
The recent agreement between the U.S. Treasury and the State Bank of Vietnam "provides a satisfactory resolution of the matter subject to investigation and accordingly that no trade action is warranted at this time," the statement said.
Under the agreement, Vietnam committed not to devalue its currency for trade advantage and to make its monetary and exchange rate policies more transparent. The deal follows months of U.S. pressure and a rising trade surplus with that country.
The U.S. had declared Vietnam a currency manipulator and threatened to impose punitive tariffs on its exports.
Vietnam rejected this repeatedly, saying it did not manipulate its currency for unfair trade advantages.
In 2020 and the first months of 2021 have been witnessed many impressions of Vietnam's wood furniture export. Vietnam has risen from the 5th position to the 2nd largest wood furniture exporting country in the world. Not only that, according to new information published by Furniture Today - one of the prestigious furniture magazines, Vietnam has replaced China as the largest exporter of furniture products to the US market.
Accordingly, in 2020, despite the effects and disruptions of trade, Vietnam exported 7.4 billion USD of furniture wood products to the United States, up 31% compared to 2019. Meanwhile, China exported 7 $3.33 billion in the same period, down 25% from 2019.
Container cargoes moved by Vietnamese ports grew by 21% year-on-year, to more than 14.7m teu during the first half of 2021, according to Hoang Hong Giang, Deputy Director of the Vietnam Maritime Administration (VMA).
VMA statistics show that this year several seaports in Vietnam experienced large increases in containerised cargo volume such as Thai Binh (65%), Dong Thap (56%), Quang Ngai (38%), Hai Phong (16%) and Ho Chi Minh City (9%). After prolonged loss-making, VIMC’s (Vietnam Maritime Corporation-former Vinalines) shipping division has started making profits.
The successful securing of lease contracts for numerous ships and a five-fold increase in freight rates for the Eurasian maritime route also contributed to the profit. VIMC chairman Le Anh Son said the volume of transported goods will be negatively affected in the second half of the year because of the current Covid-19 outbreak in the south, where key economic and industrial zones are located.