Vietnam Guides Dong Depreciation to Counter US Tariff Threats

Faced with US President Trump's trade tariff policies, Vietnam is adopting the traditional strategy of currency depreciation to gain a competitive edge among Southeast Asian nations. Exchange rate pricing data from the State Bank of Vietnam shows that the country has been steadily guiding the dong weaker this year.

According to data compiled by institutions, the daily reference exchange rate for the US dollar against the Vietnamese dong has climbed approximately 3.5% in 2025 and is expected to record the largest annual increase since 2011. The dong is currently trading near the historic low set in August, and analysts predict further depreciation as the central bank maintains its bias for a weaker exchange rate.

Darren Tay, Head of Asia-Pacific Country Risk at BMI, a Fitch Solutions subsidiary, stated: "Gradually guiding the dong weaker will allow Vietnam to slowly regain trade competitiveness in the US market." BMI forecasts that the dong exchange rate will fall to 27,000 per US dollar by the end of 2025.