USDVND pressure persists

USDVND continued its fourth consecutive weekly increase, although the pace of increase has gradually slowed. The rise reflects market caution ahead of the outcome of trade negotiations between Vietnam and the U.S., as Washington’s demands in the talks have been described as particularly tough for Vietnam. Results from the third round of negotiations showed progress, but critical issues remain unresolved. Although Vietnam has demonstrated a cooperative stance, including efforts to ease non-tariff barriers and increase imports from the U.S., such moves appear insufficient. As a result, exchange rate pressure is likely to persist in the near term, pending further developments from upcoming negotiation rounds.