VNDirect Research reports that exchange-traded funds (ETFs) in Vietnam continued to experience significant net capital outflows in November, totalling over 1.34 trillion VND (52.8 million USD).
The Malaysian ringgit (MYR) jumped against the US dollar at the close on September 30, reaching its highest level in 39 months on continued expectation of another cut in US interest rates after the latest inflation data there.
Policymakers must adopt a balanced, country-specific approach to navigate potential inflationary pressures, exchange rate volatility, and capital inflow dynamics, according to Matteo Lanzafame, Principal Economist at the Macroeconomics Research Division under the Asian Development Bank (ADB)’s Economic Research and Development Impact Department.
The Vietnam dong is expected to fall to 25,600 VND per US dollar in the second quarter of 2024, and then to 24,800 VND in the final quarter of the year and 24,600 VND in the first quarter of next year, according to experts from the United Overseas Bank (UOB).
Banks in the Association of Southeast Asian Nations (ASEAN) are grappling with uncertainty over their loan books as evidence of persistent inflation that leads central banks to refrain from slashing interest rates, increasing pressure in the financing business.
The potential reduction in interest rates by the Fed is expected to open up favourable investment opportunities in Vietnamese stocks, particularly in key sectors such as banking, import-export, retail, materials, industrial parks, technology and businesses with high dividend yields.
The likelihood of a soft landing of the US economy and the possibility that the Federal Reserve (Fed) will begin cutting interest rates which may drive the USD downward in 2024 will ease the inflationary pressure on the Vietnamese economy, according to experts.
Experts predict that recent fluctuations in foreign exchange rates are short-term, and the Vietnamese currency, the dong, will trend to appreciate again in the medium to long term.
The period of strong volatility of the US dollar has ended, and the USD/VND exchange rate in the last six months of 2023 will remain stable, experts have forecast.
The Ho Chi Minh Stock Exchange (HOSE)'s total revenue in 2022 reached over 2.5 trillion VND, down 23% compared to 2021, the country’s major bourse has announced.
According to economist Can Van Luc, the Fed's move had been forecast by regulators and investors, so it will not affect Vietnam’s economy significantly.
The State Bank of Vietnam remains steadfast in implementing a flexible and effective monetary policy to curb inflation, stabilize the currency, and ensure macroeconomic stability.
Russia's military campaign in Ukraine, central banks raising interest rates, the global population reaching 8 billion, and the World Cup in Qatar are among the top stand-out international events selected by Vietnam News Agency (VNA) in 2022.
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, some economic experts have said.
The US Federal Reserve (Fed) 's latest interest rate hike is expected to have a limited impact on Vietnam's economy, and companies exporting goods to international markets will gain advantages, according to experts.
The State Bank of Vietnam (SBV) will persist in monetary policy management solutions towards macroeconomic stability, but closely follow all developments to manage the situation in an appropriate manner, SBV Governor Nguyen Thi Hong said, given the Federal Reserve System (Fed)’s latest interest rate increase.
The recent fluctuations in the US dollar and Japanese yen have both positive and negative impacts on Vietnamese traders, according to experts of the Ministry of Industry and Trade (MoIT).
Prime Minister Pham Minh Chinh chaired a meeting attended by ministries and sectors on July 28 to discuss short- and long-term measures for keeping inflation under control, stabilising the macro-economy, and promoting socio-economic recovery and development.
The Fed’s latest move did not come as a surprise to the market, as many had anticipated a rise in interest rates due to record inflation in the US during the past months.
