Devaluing the Vietnamese dong: How much is enough?

Abstract

Over the past few years, high inflation coupled with a steady VND / USD exchange rate has led to fears that the VND is overvalued and the competitiveness of Vietnamese goods South is declining in both domestic and international markets. Therefore, it was suggested that the Government should carry out strong dong depreciation in a number of years to protect the domestic market, promote exports as well as GDP growth. Will the devaluation of Vietnam help the country's production? If so, how much devaluation is enough? This article will try to give an answer.