The dong/dollar exchange rate has fluctuated sharply in recent days after the US decided to impose tariff of 25 percent on $200 billion worth of imports from China. The decision, plus the retaliation by China to raise the tax rate from 5 percent to 25 percent on $60 billion worth of imports from the US, has shaken the world’s merchandise, finance and forex markets. The Vietnam dong has also been spiraling in the whirlwind. Phan Minh Ngoc from Intelligence Service Partners said there won’t be a single upward or downward of the dong value, because there are many factors which may have contradictory effects on the forex market. This means that both the appreciation and depreciation of the dong may occur in the short term. In theory, China, which bears tax first and is believed to be at a disadvantage in the trade war, would depreciate its currency, or let the currency get weaker, to mitigate the effects of US taxation. The Chinese yuan has depreciated from 6.738 yuan per … [Read more...] about How will VND/USD exchange rate perform in US-China trade war?
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Vingroup is gathering heavy support by developing electronics and cars that Vietnamese people can call their own Vingroup started to study the project to manufacture mobile phones under the Vsmart brand months ago. It has also worked with consultancy firms to build the manufacturing plans as well as models. Besides, the group has negotiated with partners to buy design copyrights, manufacturing lines, and components for Vsmart products. Nguyen Viet Quang, vice president cum CEO of Vingroup, shared that Vsmart products will target the mid-price segment. Vingroup will try to increase the localisation rate for Vsmart products via co-operating with both foreign and local partners to manufacture common components and accessories in the country. Vingroup will buy key components which are not produced by local manufacturers and the world’s leading mobile phone manufacturers also have to import. Quang also added that Vsmart products will be present in smart phone retail channels across … [Read more...] about First mid-price Vsmart products to be launched next year
In an effort to encourage exports in the context of the trade war, the Chinese central bank PBOC has set the yuan/US dollar reference exchange rate at 6.8365 yuan per US dollar, the lowest level since January 2019. The weakened Chinese yuan has raised big concerns for Vietnam, because China is one of the biggest export markets of the country. This will make Vietnamese exports to China more expensive. Seafood, fruits, farm produce and rubber, the biggest export items, are expected to suffer the most. According to the Ministry of Agriculture and Rural Development (MARD), Vietnam exported $1.4 billion worth of vegetables and fruits in the first four months of the year, an increase of 7.2 percent over the same period last year. China is now the biggest consumer of Vietnam’s vegetables and fruits, amounting to 72 percent of Vietnam’s export value. China is now the biggest consumer of Vietnam’s vegetables and fruits, amounting to 72 percent of Vietnam’s … [Read more...] about Vietnam’s producers meet difficulties as yuan weakens.
A decrease in the US’ imports from China could present a good opportunity for Vietnam to fill in the gap. In the context of the US-China trade war, US President Donald Trump, speaking before the press on the threshold of talks with Hungarian Prime Minister Victor Oban, said if Americans don’t want to pay for taxed goods, they could buy goods from Vietnam and other countries without US tariffs, instead of Chinese goods which are taxed by the US. Prior to that, analysts commented that the trade dispute between two of Vietnam’s top trading partners would have positive impact on Vietnam. A decrease in the US’ imports from China could present a good opportunity for Vietnam to fill in the gap. Meanwhile, Vietnam would become more attractive to foreign investors. Commenting about Trump’s statement, Duong Van Chin, director of the Dinh Thanh Agriculture Research Center, said Vietnam now has an excess of exports to the US over imports from the country, and that … [Read more...] about Trump suggests buying Vietnamese goods instead of Chinese
Vietnam’s forex reserves had reached $73 billion, equal to the value of 14 weeks of imports, as of October 31. The State Bank (SBV) reported that despite the international market (the Chinese yuan has sharply depreciated and the US-China trade war continues), the domestic forex market is stable, liquidity is strong, and all legal demands for foreign currencies can be satisfied. The State Bank reported that despite the international market (the Chinese yuan has sharply depreciated and the US-China trade war continues), the domestic forex market is stable, liquidity is strong, and all legal demands for foreign currencies can be satisfied. As for foreign portfolio investment, the equitization and state’s divestment continue attracting foreign investors, helping Vietnam collect a big amount of foreign currencies. Earlier this year, Vietcombank sold its shares to foreign investors, collecting VND6.2 trillion ($270 million). Vingroup has recently successfully sold 15 … [Read more...] about Vietnam’s forex reserves increasing rapidly