[Federal Register Volume 86, Number 13 (Friday, January 22, 2021)]
[Notices]
[Pages 6732-6733]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-01352]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket Number USTR-2020-0037]


Notice of Determination Pursuant to Section 301: Vietnam's Acts, 
Policies, and Practices Related to Currency Valuation

AGENCY: Office of the United States Trade Representative (USTR).

ACTION: Notice.

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SUMMARY: The U.S. Trade Representative has determined that Vietnam's 
acts, policies, and practices related to currency valuation, including 
excessive foreign exchange market interventions and other related 
actions, taken in their totality, are unreasonable and burden or 
restrict U.S. commerce, and thus actionable under Section 301.

FOR FURTHER INFORMATION CONTACT: For questions concerning the 
investigation, contact Michael T. Gagain, Assistant General Counsel, 
202-395-9529, or Marta M. Prado, Deputy Assistant U.S. Trade 
Representative for Southeast Asia and the Pacific, 202-395-6216.

SUPPLEMENTARY INFORMATION:

I. Proceedings in the Investigation

    On October 2, 2020, the U.S. Trade Representative initiated an 
investigation of Vietnam's acts, policies, and practices related to the 
valuation of its currency pursuant to section 302(b)(1)(A) of the Trade 
Act of 1974, as amended (the Trade Act). See 85 FR 63637 (Oct. 8, 2020) 
(notice of initiation). In the notice of initiation, USTR explained 
that the Government of Vietnam, through the State Bank of Vietnam, 
tightly manages the value of its currency, and that the State Bank of 
Vietnam's management of Vietnam's currency is closely tied to the U.S. 
dollar. USTR also explained that available analysis indicated that 
Vietnam's currency had been undervalued over the past three years, and 
that available evidence indicated that Vietnam, through the State Bank 
of Vietnam, actively intervened in the exchange market, which 
contributed to the dong's undervaluation in 2019.
    The notice of initiation solicited written comments regarding 
various issues in the investigation. Interested persons filed 66 
written submissions in response to the notice of initiation.
    In a notice published on November 25, 2020, USTR announced further 
opportunities for public input. See 85 FR 75397 (Nov. 25, 2020) 
(hearing notice). In the hearing notice, USTR announced that the 
interagency Section 301 Committee would hold a virtual public hearing 
on December 29, 2020, and that interested persons could submit post-
hearing comments, addressed to any matter raised in the hearing 
testimony or prior written submissions, by January 7, 2021. In response 
to an inquiry from certain interested persons, USTR confirmed that 
post-hearing comments may address the December 16, 2020, Department of 
the Treasury report on Macroeconomic and Foreign Exchange Policies of 
Major Trading Partners of the United States. During the public hearing, 
21 witnesses provided testimony and responded to questions. USTR 
received 18 written submissions following the hearing.
    The written submissions are publicly available on the docket in 
this investigation. A transcript of the public hearing is available on 
the public docket and is posted on USTR's website.
    Under section 303 of the Trade Act, the U.S. Trade Representative 
requested consultations with the Government of Vietnam regarding the 
issues involved in the investigation. Consultations were held on 
December 23, 2020.

[[Page 6733]]

II. Determination on the Acts, Policies, and Practices Under 
Investigation

    Based on information obtained during the investigation, and in 
consultation with the Department of the Treasury and other agencies 
represented on the Section 301 Committee, USTR has prepared and 
published a comprehensive report on Vietnam's acts, policies, and 
practices related to the undervaluation of its currency (the Report). 
The Report, which is posted on the USTR website at https://ustr.gov/issue-areas/enforcement/section-301-investigations/section-301-vietnam, 
includes a full discussion on whether the acts, policies, and practices 
under investigation are actionable under section 301(b) of the Trade 
Act. The Report supports a finding that Vietnam's acts, policies, and 
practices related to currency valuation, including excessive foreign 
exchange market interventions and other related actions, taken in their 
totality, are unreasonable and burden or restrict U.S. commerce.
    In consultation with the Department of the Treasury, based on the 
information obtained during the investigation, and taking account of 
public comments and the advice of the Section 301 Committee and 
advisory committees, the U.S. Trade Representative has made the 
following determination under sections 301(b) and 304(a) of the Trade 
Act (19 U.S.C. 2411(b) and 2414(a)): As described in the Report, 
Vietnam's acts, policies, and practices related to currency valuation, 
including excessive foreign exchange market interventions and other 
related actions, taken in their totality, are unreasonable and burden 
or restrict U.S. commerce, and thus actionable under Section 301(b) of 
the Trade Act. In particular:
    1. Vietnam's acts, policies, and practices with respect to currency 
valuation, including excessive foreign exchange market interventions 
and other related actions, taken in their totality and as discussed in 
further detail in the Report, are unreasonable in light of U.S. and 
international norms that exchange rate policy should not be undertaken 
to gain an unfair competitive advantage in international trade, should 
not artificially enhance a country's exports and restrict its imports 
in ways that do not reflect the underlying competitiveness, should not 
prevent exchange rates from reflecting underlying economic and 
financial conditions, and should not prevent balance of payments 
adjustment;
    2. Vietnam's acts, policies, and practices that contribute to 
undervaluation of its currency through excessive foreign exchange 
market interventions and other related actions burden or restrict U.S. 
commerce; and, accordingly,
    3. The acts, policies, and practices under investigation are 
actionable under Section 301(b) of the Trade Act.

III. Further Proceedings

    Sections 301(b) and 304(a)(1)(B) of the Trade Act provide that if 
the U.S. Trade Representative determines that an act, policy, or 
practice of a foreign country is unreasonable or discriminatory and 
burdens or restricts U.S. commerce, the U.S. Trade Representative shall 
determine what action, if any, to take under Section 301(b). These 
matters will be addressed in subsequent proceedings under Section 301.

Juan Millan,
Assistant U.S. Trade Representative for Monitoring and Enforcement, 
Office of the United States Trade Representative.
[FR Doc. 2021-01352 Filed 1-21-21; 8:45 am]
BILLING CODE 3290-F0-P