The central bank believes that for an open economy like Vietnam, the sharp devaluation of the local currency will not help boost exports, but will do more harm than good.

After two big purchases of foreign currencies in the first four months of the year and from July until now, Vietnam’s forex reserves reached the highest level, now at $70 billion.

Will Vietnam be chosen as the destination for investors who plan to move out of China?

Foxconn (Taiwan), TLC and Lenovo (China), Hanwa (South Korea) and Yokowo (Japan) are relocating their factories to Vietnam as a shelter from the ‘storm’ of the US-China trade war.

Businesses have expressed concern over the escalation of the US-China trade war, and are hurrying to seek solutions to anticipated problems.

SBV has allowed CNY for payment for goods, hoping that the decision will help promote cross-border trade, create favorable conditions for trade, and control underground transactions.

VietNamNet Bridge - The currencies of many countries have depreciated sharply against the dollar, thus affecting the competitiveness of Vietnam’s goods.

Dollar rates soared in the flea market and touched the latest ceiling rate set by the State Bank of Viet Nam in commercial banks August 24.

 VietNamNet Bridge – Vietnam considers devaluating the dong in an effort to boost the export after a long period of keeping the dong/dollar exchange rate stable.

Commercial banks all have raised the dollar selling price to the ceiling level of VND21,036 per dollar. The State Bank’s Exchange late last week quoted the selling price at VND21,360 per dollar.