The exchange rate between the U.S. dollar and the Vietnam dong has surpassed VND26,350 to the dollar, up 3.3% since the beginning of 2025, despite the U.S. dollar index declining nearly 10% globally. The sharp upward pressure on the exchange rate is forcing the State Bank of Vietnam (SBV) to take stronger actions to stabilize the market, and the option of selling foreign currency on a forward basis has been chosen. Exchange rate pressures remain intense As of August 22, 2025, the interbank dollar/dong exchange rate had reached VND26,350 to the dollar, an increase of about 3.3% since early 2025. Notably, the dong has depreciated even as the U.S. dollar index has fallen nearly 10% globally, and it has also weakened against several regional currencies. This suggests that exchange rate pressures are not only due to external factors, but also highlight internal weaknesses of the economy. Analysts note that the current exchange rate tensions stem from both external and domestic factors. Internationally, the two main drivers are the U.S. Government’s new tariff policies and the Federal Reserve’s (Fed) monetary policy stance. The U.S. tariff shift has slowed global foreign direct investment (FDI) disbursements into Vietnam, while the trade surplus has […]