Vietnam foreign exchange control

The Vietnamese government is taking bold steps to eliminate the dollarization in the economy, prohibiting lenders including commercial banks from providing medium- and long-term foreign currency loans to businesses to pay for imports from October 1 this year. According to the State Bank of Vietnam (SBV), the country’s central bank, the move aims to implement the SBV’s policy to shift the foreign currency-related transactions from borrowing and lending to buying and selling to restrict dollarization in the economy. With the new regulations, local importers will have to take VND-denominated loans and buy US dollars to serve their offshore payment demand. Both businesses and commercial banks said they have been making preparations for the time when USD loans would no longer be given. According to experts, the gradual narrowing of demand for foreign currency loans by the central bank is necessary and consistent with the government's anti-dollarization roadmap. Ending foreign … [Read more...] about Vietnam steps up fight against dollarization

Yellow card pushes seafood industry developing sustainably Vietnam’s seafood exports have been seriously affected since the European Commission issued an official warning against illegal, unreported and unregulated (IUU) exploitation of Vietnamese seafood. The European Commission’s yellow card has seriously affected Vietnamese seafood firms, resulting in a downturn in export value to the EU and a shortage of input material. Given these acute challenges, this company has still raked in six million USD, recorded 12 percent export growth in the first eight months of 2019. This success looks like a timely change in tactics. The EU is no longer Vietnam’s second biggest seafood importer. With import value of 251 million USD, it now stands in fifth position. According to the Vietnam Association of Seafood Exporters and Producers, seafood exports to the EU have fallen, but have witnessed growth in other markets. Seeing the challenge as an opportunity to restructure, the … [Read more...] about VIETNAM BUSINESS NEWS HEADLINES OCTOBER 17

1. We, the Foreign Ministers of the Association of Southeast Asian Nations (ASEAN), met on 31 July 2019 at the 52nd ASEAN Foreign Ministers’ Meeting (AMM) in Bangkok. We underlined the need to further strengthen cooperation and advance our partnership to ensure sustainability in all dimensions for ASEAN amidst the rapid changes in Southeast Asia and beyond.   ASEAN COMMUNITY-BUILDING 2. We reaffirmed our commitment to the full and effective implementation of the ASEAN Community Vision 2025 and the ASEAN Leaders’ Vision Statement on Partnership for Sustainability. We reaffirmed the importance of maintaining ASEAN centrality and unity in our community-building efforts, engagement with external partners and regional architecture. We commended the ongoing work of all ASEAN Sectoral Bodies and Organs for progress in the implementation of the ASEAN Political-Security Community (APSC), ASEAN Economic Community (AEC), and ASEAN Socio-Cultural Community (ASCC) … [Read more...] about Joint Communique of 52nd ASEAN Foreign Ministers’ Meeting

Rice export volume up but value falls The ministry said the total rice export volume and value in the first nine months of this year reached 5.2 million tonnes and $2.24 billion, respectively. The figures represented a rise of 5.9 per cent in volume and a drop of 9.8 per cent in value compared to the same period in 2018. Of which, Viet Nam shipped abroad 586,000 tonnes of rice in September for $251 million. The Philippines was the top market for Vietnamese rice in the first eight months of this year, consuming 1.76 million tonnes worth $720 million, 2.9 times higher in volume and 2.6 times in value over the same period last year. Strong growth was also seen in other markets, including Australia (75 per cent), Ivory Coast (nearly 35 per cent) and Hong Kong (nearly 35 per cent). The average rice price in the first eight months fell 13.8 per cent year on year to $435 per tonne. White rice led the way in the period, accounting for 47 per cent of total revenue, followed by Jasmine rice … [Read more...] about VIETNAM BUSINESS NEWS OCTOBER 14

Mekong Delta, HCMC warned of tidal flooding in lowland, riverside areas The Southern Regional Hydrometeorological Center has warned the Mekong Delta and Ho Chi Minh City of flooding in lowland and riverside areas as a high tide is forecast to occur and reach its peak in the next couple of days. According to the center, water level in the Saigon and Dong Nai rivers on October 12 highly increased. It is predicted to continue surging in the next few days. The peak of the high tide might occur on October 15-16, the 17th and 18th day of the ninth lunar month. The National Hydro Meteorological Forecasting Center also issued the same warning, saying that the water level in the Mekong and Saigon Rivers will reach alarming levels 2-3 under influence of the high tide. Low lying and riverside areas in HCMC and the Mekong Delta might be flooded. In the meantime, the meteorological station in Can Tho city said that tide level in canals in the city will continue moving up to reach 1.95-2 meters and … [Read more...] about VIETNAM NEWS HEADLINES OCTOBER 15