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Dong devaluation

The Prime Minister also said the government plans to devalue the dong as much as 2 per cent by the end of the year due to reports it is overvalued against the dollar.

However, the Prime Minister said the timing of a devaluation would be dependent on the market.

In June, the State Bank of Viet Nam (SBV) raised the inter-bank average exchange rate by 1 per cent to VND21.036 per US dollar.

This is the first move since 2011, with the bank saying any adjustments to the dong's value this year would vary within a 3 per cent range. — VNS