Global uncertainties, such as the impacts of the Fed’s rate hikes and the spiralling US-China trade war, have triggered questions about whether the lending interest rate in Vietnamese dong will increase and in what direction foreign exchange rates will move. The Vietnam News Agency talks with economic expert Vu Dinh Anh about his forecasts for the developments of the financial markets in the remaining months of this year. Could you comment on the recent developments of the money market? The money market from the beginning of this year has seen stable developments. Major indicators such as money supply, deposit growth, credit growth, interest rates and foreign exchange rates have all seen stability in the period. The foreign exchange rate is one macroeconomic indicator which has drawn significant market attention recently, given the Fed’s rate hikes and the spiralling US-China trade war. The foreign exchange rate is largely relevant to the openness of the Vietnamese economy. … [Read more...] about Domestic market faces global uncertainties
Forex capital markets
European stock markets advance as rate tensions ease
Logo of the London Stock Exchange European equity markets benefited from an apparent fading of tensions between Italy and the EU over Rome's spending, and there were also glimmers of hope that Brexit talks could see some progress. "European equities are mostly higher in afternoon action, with earnings season ramping up in the US and results mostly better than forecasted, while Italian budget and UK Brexit concerns appear to be easing," analysts at the Charles Schwab brokerage said in a note. 'NOT PARTICULARLY COMFORTABLE' London stocks, however, underperformed their eurozone peers as a weak oil price dragged down shares in energy majors. Stock markets have been rocked in recent days by fears over spiking oil prices, rising US long-term interest rates and an attack by President Donald Trump on the US central bank and its policies. While none of the dangers have disappeared, investors were grateful for the reprieve from ongoing tension. "Investors may not be feeling particularly … [Read more...] about European stock markets advance as rate tensions ease
Foreign capital attraction: A tough job
Foreign capital attraction: A tough jobBy Ngoc Khanh A high-class product launch by a foreign-invested enterprise in Vietnam. Despite a surplus of US$3.3 billion in the first half of 2018, Vietnam’s trade balance tends to be negative in the later part of the year, when the demand for imports goes up. Thus, FDI is believed to be the most hopeful – PHOTO: QUOC HUNG Foreign indirect investment (FII) will no longer be the main driver of foreign capital attraction in the second half of 2018. Then what will be in place of it? In the first six months of this year, the State Bank of Vietnam (SBV) bought over US$12 billion, enlarging the nation’s foreign exchange reserves to US$63.5 billion, said the central bank’s governor at a teleconference between the central and local governments on July 2 in Hanoi (1). The forex reserves could have risen to over US$65 billion by the end of July, as some US$2 billion in forward purchases became mature in July. The … [Read more...] about Foreign capital attraction: A tough job
SBV intervenes in forex market
SBV intervenes in forex marketThe Saigon Times Daily A bank clerk is counting U.S. banknotes in this file photo. The central bank has intervened in the forex market by selling U.S. dollars to commercial banks - PHOTO: THANH HOA HCMC – The State Bank of Vietnam has officially intervened in the forex market by selling foreign currencies, especially U.S. dollars, to meet the demand of local commercial banks and stabilize the exchange rate, local media reported, citing an SBV representative. The representative said that the central bank has sold a small amount of U.S. dollars at VND23,050 each, or VND30-60 lower than the prices at commercial banks. In addition, the central bank today, July 17, slightly strengthened the local currency by reducing the reference exchange rate to VND22,643 per dollar, the second straight day the exchange rate has been revised down. As a result, the selling and buying prices of U.S. dollars quoted by commercial banks have softened to VND23,100 … [Read more...] about SBV intervenes in forex market
Stock market confronting macro risks
Stock market confronting macro risksBy Phuong Thao HCMC – The stock market is still exposed to many macro risks such as foreign capital withdrawal and rising inflation, although many international organizations have raised Vietnam’s gross domestic product (GDP) growth forecast. Since the beginning of the second quarter, the VN-Index has shed over 20%, having earlier seen share prices skyrocket. Notably, foreigners have been aggressive on the selling side, focusing on large caps such as property giant VIC, steel maker HPG and dairy enterprise VNM, said a news report on vietstock.vn. The U.S. Federal Reserve’s (Fed) rate hike is the main reason behind the foreign withdrawal. The Federal Open Market Committee (FOMC) recently hiked its target range for the federal funds rate by a quarter of a percentage point to a range of 1.75% to 2%, marking the second hike this year and the seventh hike since 2015. Further, the Fed signaled it would accelerate the frequency of … [Read more...] about Stock market confronting macro risks
Stagnant market hinders equitization process: official
Stagnant market hinders equitization process: officialBy Thanh Thuong - The Saigon Times DailyHCMC – The equitization of State-owned enterprises is facing the tumbling block of stagnant trade on the country’s stock markets, although the Government has urged that 1,000 SOEs go public in the next five years, a finance official said.Dang Quyet Tien, deputy director of the Enterprise Finance Department under the Finance Ministry, said the equitization process since 2008 had slowed down due to continuously-falling stock prices coupled with the global financial meltdown.To date 4,000 State-owned enterprises (SOEs) have gone public, and there remain some 1,000 SOEs that must be transformed in the 2011-2015, Tien said.“As instructed by the Government, all State enterprises have to register for equitization in the 2011-2015 period,” he told the Daily in an interview.These enterprises, in fact, have put their names down for the process and have begun related procedures, … [Read more...] about Stagnant market hinders equitization process: official
Vietnam’s forex reserves forecast to hit US$48 billion by end-2017
The State Bank of Vietnam (SBV) has bought in another US$1.5 billion worth of hard currencies over the past month. Previously, SBV Governor Le Minh Hung told National Assembly deputies on November 16 during a plenary session that the bank had increased its buffer fund by US$7 billion in 11 months to bring the sum to a record high of US$45 billion. The rise was reported in the context of the foreign exchange rate in the domestic market being relatively stable. It is estimated that the daily reference VND / USD exchange rate listed by the central bank in the first nine months increased by 1.4 per cent against earlier this year, while the rate in the unofficial market declined by 1.5-1.7 per cent. The central bank has bought in another US$1.5 billion worth of hard currencies over the past month. According to the central bank, the liquidity of the domestic foreign exchange market was good and met the demands of local organizations and individuals. It is noteworthy that … [Read more...] about Vietnam’s forex reserves forecast to hit US$48 billion by end-2017
Vietnam’s forex reserves soar to record-setting US$48 billion
It meant that the SBV has brought in another US$3 billion worth of hard currencies over the past month. Previously, Governor Hung told National Assembly deputies on November 16 during a plenary session that the bank had increased its buffer fund by US$7 billion in 11 months to bring the sum to a record high of US$45 billion. The rise was reported in the context of the foreign exchange rate in the domestic market being relatively stable. A few years ago, the exchange rate usually fluctuated widely towards the year-end due to seasonal factors. In particular, the USD/VND rate has undergone little change, although the US Federal Reserve raised its benchmark interest rates by 0.25 percentage points for the third time, effective December 14. As the US rate increase was well-anticipated, the local forex market did not react negatively to the Fed’s rate announcement. The USD/VND rates were kept almost unchanged on December 15, a day following the rate hike. Across … [Read more...] about Vietnam’s forex reserves soar to record-setting US$48 billion
Vietnam’s forex reserves soar to record-setting 48 billion USD
Foreign curency exchange at the Ho Chi Minh City Development Bank (Photo: VNA)Hanoi (VNS/VNA) - Vietnam’s foreign currency reserves hit approximate 48 billion USD thanks to the country’s stable macroeconomic conditions andstrong influx of exports, foreign direct investment (FDI) and remittance,according to State Bank of Vietnam (SBV)’s Governor Le Minh Hung.It meant that the SBV has brought in another 3 billion USD worthof hard currencies over the past month.Previously, Governor Hung told National Assembly deputies on November16 during a plenary session that the bank had increased its buffer fund by7 billion USD in 11 months to bring the sum to a record high of 45 billion USD.The rise was reported in the context of the foreign exchange rate in thedomestic market being relatively stable. A few years ago, the exchange rateusually fluctuated widely towards the year-end due to seasonal factors.In particular, the USD/VND rate has undergone little … [Read more...] about Vietnam’s forex reserves soar to record-setting 48 billion USD
VN’s forex reserves soar to record-setting $48b
Viet Nam’s foreign currency reserves hit approximate US$48 billion thanks to the country’s stable macroeconomic conditions and strong influx of exports, foreign direct investment (FDI) and remittance, according to State Bank of Viet Nam (SBV)’s Governor Le Minh Hung. Foreign curency exchange at the Ho Chi Minh City Development Bank.It meant that the SBV has brought in another $3 billion worth of hard currencies over the past month.Previously, Governor Hung told National Assembly deputies on November 16 during a plenary session that the bank had increased its buffer fund by $7 billion in 11 months to bring the sum to a record high of $45 billion.The rise was reported in the context of the foreign exchange rate in the domestic market being relatively stable. A few years ago, the exchange rate usually fluctuated widely towards the year-end due to seasonal factors.In particular, the USD/VND rate has undergone little change, although the US Federal Reserve raised its … [Read more...] about VN’s forex reserves soar to record-setting $48b