HÀ NỘI — Việt Nam remains on the US Department of the Treasury’s currency monitoring list, according to its semi-annual report released on June 6.

While no country was labelled a 'currency manipulator' in 2024, the economies subject to enhanced scrutiny expanded to nine, Việt Nam, China, Japan, South Korea, Taiwan, Singapore, Germany, Ireland and Switzerland.

The Treasury said Việt Nam continues to meet the criteria due to its large trade surplus with the United States and current account position. In 2023, Việt Nam posted a goods trade surplus of over US$105 billion with the US, the highest among all American trading partners.

The country is a key exporter of textiles, electronics, seafood and agricultural products, and has become an increasingly important partner for the US in the Asia-Pacific region.

Inclusion on the watch list does not entail sanctions or indicate currency manipulation. Rather, it reflects the US government’s interest in monitoring macroeconomic and exchange rate policies that could affect trade imbalances. Việt Nam has been on the list since 2019.

According to US officials, continued monitoring underscores the need for transparency and dialogue in financial and monetary policy between the two countries. Experts also view it as an opportunity for Việt Nam to reinforce its commitment to stable and market-based macroeconomic management.

A country is placed on the list if it meets at least two out of three: a goods trade surplus with the US of at least US$15 billion, a current account surplus above 3 per cent of GDP, and persistent, one-sided foreign exchange intervention.

China remained a central focus of the report. Though not labelled a manipulator, the Treasury warned of its lack of transparency and signalled possible tougher action if Beijing is found to be intervening, whether officially or otherwise, to suppress appreciation of the renminbi. This marks the Trump administration’s first strong stance on currency issues since returning to office.

Japan and South Korea remain under close watch due to past interventions and sustained trade surpluses with the US. Taiwan and Singapore were included for meeting current account and foreign exchange criteria, while Germany continues to appear on the list due to its long-running current account surplus, despite the eurozone monetary policy being set by the ECB.

Ireland was newly added for its rising high-tech and pharmaceutical exports to the US, and Switzerland re-entered the list following a surge in its trade surplus, particularly in gold and pharma. — VNS