At a group meeting of the National Assembly on socio-economic affairs on May 22, PM Phuc said the exchange rate has been also stable and inflation has kept under control. Experts attributed the stability to factors such as the State Bank of Vietnam (SBV)’s flexible central rate management mechanism, which ensured that the domestic foreign exchange market was less affected by global factors. PM Nguyen Xuan Phuc was at a group meeting of the National Assembly on May 22. Photo chinhphu.vn 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. The SBV affirmed it would continuously try to build up the country’s foreign reserves this year to cushion external shocks, besides supporting efforts to stabilize the forex market. Fitch Ratings recently also forecast that Vietnam’s foreign … [Read more...] about Vietnam’s foreign reserves hit 64 billion USD
Vietnam foreign exchange control
Fitch raises Vietnam sovereign credit rating, sees fast growth
Ratings firm Fitch raised Vietnam’s sovereign credit rating on Tuesday, a move that economists said should boost the Southeast Asian economy’s already-substantial investment inflows. Fitch raised Vietnam’s long-term foreign-currency issuer default rating to 'BB' from 'BB-', with a stable outlook. The agency said the upgrade reflects Vietnam’s improving policy-making aimed at strengthening macroeconomic performance. After Fitch’s move, which comes at a time there’s pressure on many emerging market economies and worries about capital outflows, there are still two more upgrades needed before the agency considers Vietnam investment grade. In an indication that the path to an investment grade rating might not be smooth, Fitch said Vietnam’s banking sector is structurally weak and “weighs heavily on the rating”. Fitch said it expects Vietnam’s gross domestic product to grow by the targeted 6.7 percent this year. Growth in 2017 was … [Read more...] about Fitch raises Vietnam sovereign credit rating, sees fast growth
Upgrade in the offing for Vietnam’s stock market
(VEN) - The Vietnamese stock market has grown sharply since the beginning of the year, with capitalization mainly focusing on the finance-banking sector and real estate. With strong growth of its indexes, the Vietnamese stock market stands a chance of being upgraded to the status of an emerging market by international ranking bodies in June 2018. Three international organizations provide market assessments of the Vietnamese bourse, including MSCI (Morgan Stanley Capital International), FTSE Russell and S&P Dow Jones. Criteria for consideration include the level of economic development, political stability, market size and liquidity, market performance, market access of foreign investors, and capital circulation. All three divide markets into three grades - developed, emerging and frontier status. These rankings help investors determine their investment strategy and capital allocation for each type of market. Vietnam is now in the frontier status and missed an opportunity to be … [Read more...] about Upgrade in the offing for Vietnam’s stock market
Vietnam’s foreign reserves hit US$63 billion as of April
Vietnam’s foreign exchange reserves grew to a record high of almost US$63 billion as of the end of April, a senior Government official has stated. Vietnam purchased an additional US$32 billion over the past two years Chairman of the Government Office Mai Tien Dung informed the media that Vietnam purchased an additional US$32 billion over the past two years. He said that large reserves will provide more room for the State Bank of Vietnam to implement its monetary policy, especially in helping to maintain stability in exchange rates. In 2017, the exchange rate between the US dollar and the Vietnamese dong increased by just 1.2 percent, lower than the 2 pct target set by the government. According to the National Financial Supervisory Commission, the USD/VND rate continued to remain stable in the first quarter of 2018 and was supported by a strong supply of foreign currency. The exchange rate stood at VND22,463 per US dollar as of March 29, up 0.21 pct against the end of … [Read more...] about Vietnam’s foreign reserves hit US$63 billion as of April
Stable interest and exchange rates forecast for 2018
(VEN) - Macroeconomic developments and the impact of the international financial market signal a low probability of lower interest rates in 2018. At the same time, stable exchange rates and a high trade surplus are forecast for the year. Difficulties for lowering interest rates A recent government resolution requires the State Bank of Vietnam (SBV) to strive for lowered interest rates. However, according to economists, this goal can only be achieved with the support of macroeconomic developments and the international financial market. Dr. Tran Du Lich, a member of the Prime Minister’s Economic Advisory Group, said the Vietnamese economy would undergo positive changes in 2018. This assessment is based on an estimated GDP growth of more than 7.1 percent in the first quarter of the year. Regarding interest rate policy, in order to force interest rates down and expand lending, rediscount must be increased, lending activities intensified and inflation controlled. “To some … [Read more...] about Stable interest and exchange rates forecast for 2018