Vietnam Is Guiding the Dong Lower as US Tariffs Threaten Exports

Vietnam is using the age-old tactic of currency depreciation to gain a competitive advantage over its Southeast Asian peers as nations look for ways to ease the burden from US President Donald Trump’s trade tariffs.

The State Bank of Vietnam has been steadily guiding the dong weaker this year, its currency fixings show. The daily reference rate for the dollar-dong pair has climbed about 3.5% in 2025, poised for its steepest annual gain since 2011, according to data compiled by Bloomberg. The dong is trading near a record low reached in August, with analysts forecasting further declines as the central bank is expected to maintain a weaker bias.