According to experts, to minimise exchange rate risks, the SBV should manage the rate flexibly, but not fix or anchor it because Vietnam's economy is deeply integrating towards it becoming a market economy, which requires flexibility.
In 2022, despite many difficulties, Vietnam has managed to keep the macro-economic stability, with high economic growth, controlled inflation and ensured major balances, as well as political stability and protected security and national sovereignty, and enhanced external relations, Prime Minister Pham Minh Chinh said at the 5th Vietnam Economic Forum in Hanoi on December 17.
After being relatively stable last year, the foreign exchange rate of the Vietnamese dong against the US dollar is forecast to be under greater pressure in 2020 due to both internal and external headwinds.
The consumer price index (CPI) in March fell 0.21 percent from the previous month, which was largely driven by lower prices in seven of the 11 groups of consumer goods and services.
Vietnamese companies are depending too much on bank loans, and when the number of companies increases, it will reduce their chance of receiving financing from financial institutions.
Vietnam’s foreign currency reserves hit approximate 48 billion USD thanks to the country’s stable macroeconomic conditions and strong influx of exports, FDI and remittance.
Vietnam’s foreign exchange reserves are at an all-time high of 42 billion USD, Le Minh Hung, Governor of the State Bank of Vietnam (SBV), said at the monthly cabinet meeting on July 3.
Remittances to HCM City in the first six months of the year were worth 2.1 billion USD, marginally up from the same period last year, according to the State Bank of Vietnam’s HCM City branch.
Interest rates for deposits and loans and bond yields have remained relatively steady since the end of January, as inflation is under control and foreign exchange rate is stable.
