US eyes to investigate Vietnam on currency manipulation

Some media reported, citing news sources. President Donald Trump's administration plans to announce an investigation of Vietnam's Dong currency movement. Such checks will be carried out in accordance with Section 301 of the Trade Act established in 1974.

An announcement is expected this week. And it comes after the Commerce Department and the US Treasury have indicated in August of the past. Vietnam has a currency manipulation behavior. Which involves the purchase of tires. Spokespersons of the Commerce Department and the US Treasury declined to comment on the reports.

Vietnam is one of the 10 largest trading partners in the US. While the US has a trade deficit with Vietnam of $ 34.8 billion from the start of the year to July. This is the highest deficit after the deficit with China, Mexico and Switzerland.

The Trump administration has previously used such checks under the Section 301 trade law to impose billions of dollars in tariffs on Chinese goods. Which is the cause of the trade war between the two countries.

However, it often takes several months to investigate the spinning case. The US is expected to not yet impose sanctions on Vietnam by imposing tariffs ahead of the Nov. 3 presidential election.