U.S. Opens Trade Case to Probe Vietnam Currency Undervaluation

10/03/2020

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Brendan Murray | Bloomberg

The U.S. announced it’s opening a trade investigation into Vietnam’s currency policy to determine whether an undervalued dong hurts American businesses.

Trade Representative Robert Lighthizer announced the so-called 301 case late Friday in Washington, which will also target the Asian country’s import of illegal timber. The probe follows determinations in August by the U.S. Treasury and Commerce departments that Vietnam had manipulated its currency in a specific trade case involving tires. 

“Unfair currency practices can harm U.S. workers and businesses that compete with Vietnamese products that may be artificially lower-priced because of currency undervaluation,” Lighthizer said in a statement. “We will carefully review the results of the investigation and determine what, if any, actions it may be appropriate to take.”

Vietnam’s Ministry of Foreign Affairs didn’t immediately respond to an email request for comment.

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