The United States Announces the Results of the “301 Investigation” on Vietnam’s Exchange Rate Policy

 The United States Announces the Results of the "301 Investigation" on Vietnam's Exchange Rate Policy

The Office of the United States Trade Representative announced on the 15th the results of the “301 Investigation” on Vietnam’s exchange rate policy, stating that behaviors and policies related to the valuation of Vietnam’s currency appear to be “unreasonable” as a whole and restrict US business activities. However, the US has not announced tariff penalties.

The U.S. Trade Representative's Office stated that the U.S. Trade Representative has consulted the U.S. Department of the Treasury for advice on Vietnam’s exchange rate policy and currency valuation issues. The U.S. Treasury Department issued a report last month listing Vietnam as a “currency manipulator”, accusing Vietnam of interfering in the exchange rate to gain an unfair competitive advantage in international trade. The Central Bank of Vietnam responded that Vietnam manages the exchange rate to ensure macroeconomic stability.

 The U.S. Trade Representative's Office said that the U.S. will not currently take any specific measures in response to the above-mentioned investigation results, but will continue to evaluate all available policy options. U.S. Trade Representative Lighthizer said in a statement that "unfair" behaviors and policies that have led to the underestimation of the value of the currency harm the interests of American workers and businesses. He hopes that the United States and Vietnam can find a way out to resolve the concerns of the United States.

The Office of the United States Trade Representative announced in October last year that it launched a "301 investigation" on Vietnam's timber and exchange rate-related policies. The so-called "301 investigation" originated from Article 301 of the US Trade Act of 1974. This clause authorizes the U.S. Trade Representative to initiate investigations into "unreasonable or unfair trade practices" of other countries and to recommend unilateral sanctions to the U.S. President after the investigation is over.