August witnessed global financial turmoil triggered by the unprecedented Yuan devaluation and its spillover effect on other Asian currencies. Vietnam’s economy, with export turnover equivalent to 80% GDP, was unable to escape these external turbulences – the SBV had no choice but to break their commitment and devalue the Dong for the third time this year (mid-point up 1%, trading band widened to 3% from 1%). Yet, the action was framed as necessary from a trade perspective (see page 6).