US Trade Representative Katherine Tai. (Photo: VNA)

A statement by the USTR said that the move reflects the agreement reached earlier this week between the US Department of the Treasury and the State Bank of Vietnam (SBV), which provides a satisfactory resolution of the matter subject to investigation and accordingly that no trade action is warranted at this time.

US Trade Representative Katherine Tai commended Vietnam for its commitment to addressing the US's concerns with its currency practices and setting an important example for the Indo-Pacific region.

Tai said American workers and businesses are stronger when their partners value their currency fairly and compete on a level playing field.

She added that the USTR, in coordination with the US Department of the Treasury, will work with Vietnam to ensure implementation and will continue to examine the currency practices of other major trading partners.