Thailand's agricultural export, particularly rice, would stay immune to negative impacts from the dong devaluation, said Commerce Permanent Secretary Yanyong Phuanrach.

He noted that Vietnam's white rice was quoted nearly US$100 per tonne lower than Thailand's white rice late last year, but now the price at $430-$450 is $40-$50 lower. Vietnam realised that dong devaluation would also pressure the rice prices which would hurt its farmers, he noted.

He insisted that Thailand has the strategy not to enter into a price war when it comes to rice exports, as Thai product is of higher quality. As such, the devaluation would not affect the Thai agricultural exports.
"At the Asean minister meeting in Vietnam this week, Thailand seeks a conversation with Vietnam's trade minister over the rice market. We may forge cooperation, to cash in on the Asean Free Trade Agreement," he said.

Vietnam today devalued its currency for the third time since November, moving to reverse a slump in exports that helped to drive stocks close to a bear market.

The dong dropped 1.1 per cent to 19,320 per dollar as of 11.22am in Hanoi, after touching a record-low 19,425 as the central bank lowered the reference rate by 2 per cent. The Ho Chi Minh City Stock Exchange_s VN Index dropped 1.7 per cent to 455.49, extending its decline from the May peak to 17 per cent, near the 20 per cent that would indicate a bear market.

Source: The Nation