While Vietnam is at risk of being listed as currency manipulator by the US, such a risk appears low, as the US will likely continue to reduce its dependence on Chinese exports by reorganizing its supply chain with other partners.

 After a long period of stability, pressure from global markets has caused the Vietnamese dong to depreciate significantly against the US dollar in the past few days.

After being relatively stable last year, the foreign exchange rate of the Vietnamese dong against the US dollar is forecast to be under greater pressure in 2020 due to both internal and external headwinds.

The VND was expected to remain broadly stable against the USD over the remainder of 2019 and to be slightly weaker on average over 2020, buoyed by robust FDI inflows, dollar purchases by businesses, and a healthy foreign reserve position.

The Vietnamese dong has gained some strength against the US dollar in the past month, helped by abundant domestic supply and favourable global conditions.

Experts are calling on the Government to devalue the Vietnamese dong by three to four per cent against the US dollar, saying this adjustment would provide much-needed relief to export firms.