Vietnam’s New Move Towards BRICS and a Gold-Backed RV of the VND

Vladimir Putin’s State Visit Today and Vietnam’s Anticipated Role in the BRICS Alliance and Gold-backed Currency

Vietnam is poised to make a significant shift in its global economic strategy by joining the BRICS Alliance and participating in the BRICS gold-backed common trade currency.

This anticipated move has sparked considerable concern within the Western Alliance (G7), which fears the repercussions of a rapidly expanding BRICS influence.

This article explains the implications of Vietnam’s potential membership in BRICS, the United States’ reaction, and the strategic balancing act Vietnam is maintaining between its relationships with the US and Russia.

Vietnam’s Likely Membership in BRICS

Vietnam’s potential membership in the BRICS Alliance represents a strategic alignment with the world’s major emerging economies.

BRICS is expanding its influence by creating a gold-backed common trade currency. This currency aims to provide an alternative to the US dollar, thereby reducing the economic leverage the G7 holds over global trade.

ALSO READ: High Level Talks Indicate Vietnam Poised to Join BRICS: Great News for VND

Vietnam’s inclusion in BRICS would not only bolster the alliance’s economic strength but also align with Vietnam’s long-term strategic interests.

The country’s participation would facilitate its access to a more diversified economic network, reduce dependency on Western fiat currency financial systems, and enhance its regional influence.

The US Response to Vietnam’s Diplomatic Relations

The United States has expressed strong disapproval of Vietnam’s continued diplomatic engagement with Russia, exemplified by the sharp rebuke from the US Embassy in Hanoi regarding President Putin’s State to Vietnam today.

A US spokesperson criticized Vietnam for giving President Putin a platform, suggesting it could normalize Russia’s actions in Ukraine. This reaction underscores the US’s concern over Vietnam’s strengthening ties with Russia, especially in the context of BRICS’ growing influence.

However, this stance by the US appears hypocritical, given that neither the US nor Vietnam is a signatory to the Rome Statute that established the International Criminal Court, which issued a warrant for President Putin’s arrest.

Furthermore, Vietnam’s decision to engage with Russia is rooted in a long history of bilateral cooperation and mutual support, particularly during and after the Vietnam War.

Vietnam’s Strategic Balancing Act Between East and West

Vietnam’s foreign policy is characterized by its strategic autonomy and a careful balancing act between maintaining relations with both the US and Russia.

This approach allows Vietnam to leverage its position to manage its maritime territorial disputes with China, its top trade partner, while also benefiting from Russian military and energy cooperation.

ALSO READ: VND Update: U.S. Trade Upgrade Promises Stronger Exchange Rate

By hosting President Putin, Vietnam is reinforcing its longstanding strategic partnership with Russia, which is vital for its defense and energy sectors.

At the same time, Vietnam remains committed to its strategic partnership with the US, which serves as a counterbalance to China’s rising influence in the region.

The Future of the VND in a Gold-Backed System RV

As Vietnam moves closer to joining the BRICS Alliance, the prospect of revaluing its currency, the Vietnamese dong (VND), in alignment with the BRICS gold-backed common trade currency becomes more imminent.

This shift would position Vietnam advantageously within a new global financial architecture that is less dependent on the US dollar.

The introduction of a gold-backed currency by BRICS represents a significant challenge to the Western-dominated financial system.

For Vietnam, adopting this currency could enhance economic stability, attract foreign investment, and reduce the risks associated with currency fluctuations tied to the US dollar.

The Bottom Line

Vietnam’s potential membership in the BRICS Alliance and the adoption of a gold-backed common trade currency mark a pivotal moment in the country’s economic strategy.

The US’s sharp rebuke of Vietnam’s diplomatic relations with Russia underscores the tensions between the Western and Eastern economic blocs.

As Vietnam prepares to join BRICS, it stands to benefit significantly from a diversified economic network and a more stable, gold-backed currency system.