Việt Nam’s energy sector needs private investment for more development. — Photo congthuong.vnViet Nam News HÀ NỘI – New financial sources, especially from the private sector, will help Việt Nam further develop its energy industry, according to a new World Bank report on Việt Nam’s energy development. The report on Maximising Finance for Development in Việt Nam’s Energy Sector said the changing macroeconomic and sectoral context in Việt Nam needed new financial sources for electricity and gas investment activities. It presented an action plan on opening new sources of capital, especially from the private sector, based on a comprehensive analysis of investment demand as well as constraints in the existing legal environment including the capital and forex markets. From now until 2030, Việt Nam’s electricity sector needs new investment of about US$10 billion annually, higher than the average of $8 … [Read more...] about Private capital is key for Việt Nam’s energy development: WB report
Forex viet nam
Forex lending to continue next year
The State Bank of Viet Nam (SBV) is drafting a new circular on foreign currency lending, allowing credit institutions and foreign bank branches to extend loans to some borrowers in 2019 instead of cutting them off at the end of this year as planned. Outstanding foreign currency loans among local banks is estimated at nearly VND300 trillion (US$12.76 billion).-Photo cafef.vn Under the draft circular, which aims to revise Circular 24/2015/TT-NHNN, lenders will be permitted to provide short-term foreign currency loans to exporters who need the capital for importing input materials. Borrowers will be required to have sufficient foreign currency revenue from exports to repay the loans. The short-term loans will be also available to those who need foreign currencies to pay for imported goods and services to serve domestic consumption, with the deadline for loans pushed back to March 31, 2019. In addition, lenders will be allowed to consider the provision of medium and long-term … [Read more...] about Forex lending to continue next year
SBV’s forex policy aimed for macroeconomic stability
The State Bank of Viet Nam (SBV)’s exchange rate policy was aimed at ensuring macroeconomic stability, not just export growth, said Nguyen Thi Hong, the bank’s deputy governor. Hong made the statement following suggestions that the dong should be further weakened against the US dollar to support the country’s exports, especially given the recent devaluation of the Chinese yuan. According to Hong, the SBV had been monitoring several currencies as well as the yuan to set its daily reference exchange rates. Besides managing the forex market based on the daily reference rate, Hong said that SBV was also looking at other factors such as interest rates and liquidity, as well as fiscal policies to ensure the country meets its macroeconomic targets. The SBV reported that by August 1, the central bank’s daily reference exchange rate of the dollar against the dong had risen by 1.1 per cent compared to the end of last year, while with the current trading band of +/- 3 per … [Read more...] about SBV’s forex policy aimed for macroeconomic stability
Central bank may sell $4-10b to stabilise forex market: HSC
Viet Nam News HÀ NỘI — The State Bank of Việt Nam (SBV) could sell from US$4-10 billion to commercial banks this year to stabilise the foreign exchange market if necessary, HCM City Securities Corporation (HSC) forecast. According to HSC’s latest report, after selling $2 billion in recent weeks, the SBV was closely monitoring the market and was ready to intervene again. HSC analysts believed that the SBV would pursue a flexible policy to stop the rising US dollar/đồng exchange rate rather than reducing the rate. HSC also kept its previous forecast unchanged that the US dollar would strengthen by 3 per cent against the đồng this year if the ICE US dollar index fluctuated at around 94-97 points and the US dollar/yuan exchange rate was set at around 6.8-7 points from now to the end of this year. HSC noted that it would revise the forecast if one of the two above assumptions did … [Read more...] about Central bank may sell $4-10b to stabilise forex market: HSC
Viet Nam’s foreign reserves hit US$64bn
Viet Nam’s foreign reserves has increased by 130 per cent to nearly US$64 billion in the past two-and-a-half years, Prime Minister Nguyen Xuan Phuc said. At a group meeting of the National Assembly on socio-economic affairs on Tuesday, Phuc said the exchange rate has been also stable and inflation has kept under control. Experts attributed the stability to factors such as State Bank of Viet Nam (SBV)’s flexible central rate management mechanism, which ensured that the domestic foreign exchange market was less affected by global factors. In addition to this, the domestic supply-demand relationship with the dollar was relatively stable, thanks to foreign currency supply from exports, foreign investment, official development assistance, tourism and remittances. SBV affirmed it would continuously try to build up the country’s foreign reserves this year to cushion external shocks, besides supporting efforts to stabilise the forex market. Fitch Ratings recently also … [Read more...] about Viet Nam’s foreign reserves hit US$64bn