Core Insights - Vietnam is adopting currency devaluation as a strategy to gain a competitive edge among Southeast Asian countries in response to U.S. President Trump's trade tariff policies [1] - The Vietnamese dong has been steadily guided to weaken, with the daily reference exchange rate against the U.S. dollar rising approximately 3.5% in 2025, marking the largest annual increase since 2011 [1] - Analysts predict further depreciation of the dong as the central bank maintains a weak currency stance, with a forecasted exchange rate of 27,000 VND to 1 USD by the end of 2025 [1] Currency Strategy - The State Bank of Vietnam is actively managing the exchange rate to enhance trade competitiveness in the U.S. market [1] - The dong is currently trading near historical lows reached in August, indicating ongoing pressure on the currency [1] - BMI's Asia-Pacific country risk director suggests that gradual devaluation will help Vietnam regain trade competitiveness in the U.S. market [1]

Core Viewpoint - Vietnam is adopting currency devaluation as a strategy to gain a competitive advantage among Southeast Asian countries in response to U.S. President Trump's trade tariff policies [1] Group 1: Currency Devaluation Strategy - The State Bank of Vietnam has been steadily guiding the Vietnamese dong to weaken throughout the year [1] - The daily reference exchange rate of the U.S. dollar to the Vietnamese dong has increased by approximately 3.5% in 2025, expected to mark the largest annual increase since 2011 [1] - The current trading price of the Vietnamese dong is close to the historical low reached in August, with analysts predicting further devaluation as the central bank maintains a weak exchange rate policy [1] Group 2: Market Competitiveness - Darren Tay, the Asia-Pacific country risk head at Fitch Solutions' BMI, stated that the gradual devaluation of the Vietnamese dong will help Vietnam regain trade competitiveness in the U.S. market [1] - BMI forecasts that by the end of 2025, the exchange rate of the Vietnamese dong will drop to 27,000 dong per U.S. dollar [1]