Vietnam’s economic landscape is poised for robust growth, with experts forecasting the possibility of a remarkable two-digit expansion in the coming time, driven by foreign direct investment (FDI) and technological advancements.
The State Bank of Vietnam (SBV) has applied a 0% interest rate on foreign currency deposits to address foreign exchange and exchange rate volatility, Governor Nguyen Thi Hong explained during a question-and-answer event at the 15th National Assembly’s 8th session.
Prospects for credit growth and exchange rates will create favourable conditions for non-bank corporate bonds to recover in the final months of this year, analysts forecast.
The State Bank of Vietnam set the daily reference exchange rate for the US dollar at 24,172 VND/USD on September 13, down another 15 VND from the previous day.
The State Bank of Vietnam set the daily reference exchange rate at 24,252 VND/USD on July 29, up 3 VND from the last working day of previous week (July 26).
To control the exchange rate, experts suggest that regulatory agencies should absorb liquidity through treasury bills and other operations to raise interbank interest rates, and sell foreign exchange reserves.
Current exchange rate fluctuations still fall within the controlled range of the State Bank of Vietnam, without necessitating usage of foreign exchange reserves for intervention, Nguyen Ba Hung, Chief Economist of the Asian Development Bank (ADB) in Vietnam, has said.
The authorities of Vientiane capital has urged the private sector to cooperate in implementing urgent measures to address economic and financial difficulties relating to inflation, rising exchange rates and foreign debt.
Lao Prime Minister Sonexay Siphandone has directed authorities to take actions to urgently address the country’s economic and financial difficulties amid continuing depreciation of the Lao kip, rampant inflation and high public debts.
Experts reported that the impact of the Fed’s rate hikes was minimal in Vietnam, and the value of the Vietnamese dong remained stable compared to the US dollar.
Amid the US Federal Reserve (FED)’s continuous increases of interest rates to cope with inflation, the most important task for Vietnam now is to keep macro-economic stability, with monetary stability being the core, economic experts have said.
The US Department of the Treasury has recognised the progress made by Vietnam in its recently released report on macro-economic and foreign exchange policies of major trading partners of the US, the State Bank of Vietnam (SBV) said on June 13.
For the time ahead, the State Bank of Vietnam (SBV) will keep a proactive and flexible monetary policy basing on market developments and forecasts for the macro-economy, SBV Deputy Governor Dao Minh Tu told a meeting on April 22.
A meeting held in Hanoi on May 10 discussed financial solutions for businesses amid the current context in which roughly 20 percent of firms in need of funding still have problems gaining access to credit.
The VND/USD exchange rates saw little changes this morning although the US Federal Reserve (Fed) raised interest rates on June 14 on the confidence in a growing economy and strengthening job market in the world’s biggest economy.
