Vietnam has been on the US Treasury’s currency manipulator watchlist for several years, which puts it at risk of coming under punitive tariffs such as those levied on China. Vietnam is likely to meet its target of reining in inflation at a rate of below 4% in 2021, although experts warn that unfavourable factors could impact market fluctuations. While Vietnam has largely contained its domestic outbreak and eased restrictions for business travel, which should allow investors back in to the country, a lack of flights scheduled and also likely increased red-tape for business outbound travel approvals from the perspective of investors residing in foreign countries will continue to hamper FDI inflow to Vietnam. Although foreign direct investment (FDI) in 2020 is likely to be weaker than 2019 due to Covid-19, Fitch Solutions expected the Vietnamese central bank to continue intervening to maintain the dong (VND) stability over the coming quarters and have revised its forecast for the VND to average VND23,250/USD in 2020, from VND23,475/USD previously. Comprehensive information about the USD VND (US Dollar vs. Vietnamese Dong). Binance will list Binance VND (BVND) and open trading for BUSD/BVND and USDT/BVND trading pairs at 2020/12/18 12:00 PM (UTC). HA NOI — The State Bank of Viet Nam plans to increase the value of the Vietnamese dong against the US dollar over the next four months in a bid to protect the value of the domestic currency, State Bank Governor Nguyen Van Binh told Sai Gon Economic Times this week. Value Of Dong Today Wednesday, 28 October 2020. The exchange has recently suspended deposits for IDR [Indonesian Rupiah] and ZAR [South African Rand] due to some maintenance issues. In the short-term, the State Bank of Vietnam (SBV)’, the country’s central bank, is expected to continue maintaining currency stability to sustain exports competitiveness, according to Fitch Solutions, a subsidiary of Fitch Group. With a foreign reserve position of US$84 billion as of April, representing 3.9 months of imports, it is believed that the State Bank of Vietnam (SBV) has sufficient firepower to keep the dong stable over the coming months. Over the first nine months of 2020, total newly registered capital, adjusted capital and capital contribution by foreign investors was recorded at US$21.2 billion, 81.1% of the level of the same period in 2019. After four long years of debate, negotiation, elections, and more debate, the United Kingdom has finally and officially left the European Union.  Higher Inflation In Vietnam Versus The US. Back to the Vietnamese Dong Buy Page. In long-term outlook, Fitch Solutions expected the VND to remain on a gradual weakening trend against the US dollar due to VND’s persistent overvaluation and higher structural inflation in Vietnam versus the US. One key reason was Vietnam’s border closures in the second quarter due to Covid-19 having prevented investors from conducting site visits in Vietnam, which Fitch Solutions expected to impact FDI flow during the second half of this year. The foreign exchange rate of the Vietnamese dong against the US dollar is forecast to be under greater pressure in 2020 Finance expert Nguyen Tri Hieu said that pressure on the exchange rate would be bigger this year as a greenback supply decline in the domestic market is forecast, driven by weaker foreign direct investment (FDI) inflows and exports. As a result, Fitch Solutions forecast the Vietnamese dong (VND) to average VND23,250/USD in 2020 and VND23,400/USD in 2021. July 7, 2020 To whom it may concern TOKAI Holdings Corporation Katsuhiko Tokita, President & CEO (Code No. However, he found the … High inflation would weigh on Vietnam’s export competitiveness in addition to incentivizing imports, which combined, would pressure the dong weaker over the long run. As of present, the VND has appreciated by 1.1% against the US dollar and has averaged VND23,290/USD in the year-to-date. Given the likely continuation of these violations, Vietnam is at risk of punitive actions from the US, although the US could decide to not pursue the matter further on the back of political considerations that it would require an ally in the region to counter China’s expanding influence. "Since February, the real value of Vietnamese dong has risen slightly," Binh said. Traditional markets and groceries still hold the largest share of the consumer retail market, but new business models are scrambling for a piece of the pie. A September report from The Economist has stated that the Vietnamese government will continue to privatize more businesses in the coming year. While it is likely that some of the strength in the REER could be attributed to productivity gains, an overvalued currency would in general still weigh on export competitiveness, dragging on export earnings and the strength of the dong. Buy Back Guarantee. The dong reached a … Three amended key laws on securities, enterprises, and investment have now come into force. Meanwhile, the VND has remained flat against the US dollar since July and has averaged VND23,255/USD so far this year. © Copyright 2004; Hanoitimes - Economic and Urban Newspaper; The tribune of Hanoi People’s Committee, VND more resilient compared to regional peers amid Covid-19: VinaCapital, Vietnam’s strong foreign currency supply helps stabilize USD/VND exchange rate: Expert, Vietnam c.bank predicted to keep VND stable amid CNY devaluation, Vietnam economy to enjoy a rosy 2021: HSBC, Vietnam stock market watchdog addresses overload issue, Central Bank steps up efforts to address US tag of currency manipulation, Vietnam budget deficit forecast at 3.6% of GDP in 2021, Vietnam Central Bank targets credit growth at 12% in 2021, Early positive signs for Vietnam stock market in 2021, Financial sector urged to raise 2021 budget collection, Vietnam credit growth set to return to pre-Covid-19 level in 2021. The total newly granted and adjusted FDI capital was $1.27 billion, reaching 115 percent of the set target in the year. The regulatory sandbox for financial technology (fintech) which is expected to be created this year, coupled with efforts to promote the use of digital financial services, are expected to accelerate the development of fintech in Vietnam. Vietnam’s development outlook is set to be formulated over the next few weeks when the 13th National Party Congress takes place in Hanoi. Fitch Solutions maintains its expectations for the dong to remain on a gradual depreciatory trend against the US dollar due to the dong’s persistent overvaluation and higher structural inflation in Vietnam versus the US, averaging VND23,400/USD in 2021. Vietnamese Dong Exchange Rate Forecast Sunday, 17 January 2021. A number of Americans are buying the Vietnamese dong … USDVND | A complete Vietnamese Dong currency overview by MarketWatch. 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In the first 10 months of the year, foreign direct investment (FDI) flowing into Vietnam slowed down amid the COVID-19 pandemic. Minister of Agriculture and Rural Development Nguyen Xuan Cuong talks about measures to promote modern agricultural development. Being on the watchlist implies that Vietnam is still at risk of coming under punitive tariffs such as those levied on China, although these risks appear low, as the US will likely continue to reduce its dependence on Chinese exports by reorganizing its supply chain with other partners like Vietnam. The Vietnamese dong gained 0.2% this year, underperforming Asian peers including the Chinese offshore yuan, which rose about 7% in the same period. With a foreign reserve position of US$84 billion as of July, representing around 4.0 months of imports, Fitch Solutions expected that the SBV has sufficient firepower to keep the VND stable over the coming months. Le Van Danh, deputy head of the DIZA, said that in 2020, Dong Nai exceeded its annual plan by attracting 92 new investment projects, including 66 FDI ones. You are here: Home / Vietnamese Dong / Vietnamese Dong Revaluation. 2020 marked an unexpectedly successful year for big investment funds in Vietnam, with Pyn Elite Fund having the best performance. Vietnam’s inflation is forecast to average 3.8% in 2020 and 4.2% in 2021, mainly on the back of food inflation due to rising animal protein prices as a result of continuing supply shortages. This suggest that food inflation is likely to remain elevated for some time. On the other hand, given that exports account for more than 100% of GDP in 2019, it is unlikely that the SBV will pursue a stronger dong, especially as this might weigh on the recovery of the country’s export-oriented manufacturing sector over the coming months hit by Covid-19. While Vietnam is at risk of being listed as currency manipulator by the US, such a risk appears low, as the US will likely continue to reduce its dependence on Chinese exports by reorganizing its supply chain with other partners. Purchases will open at 2020/12/21 10:00 AM (UTC) for verified Vietnamese users. The Covid-19 pandemic has disrupted investment flow into Vietnam’s startups, but for venture funds, Vietnam is still considered a priority market in Southeast Asia in 2021. Although foreign direct investment (FDI) in 2020 is likely to be weaker than 2019 due to Covid-19, Fitch Solutions expected the Vietnamese central bank to continue intervening to maintain the Vietnamese dong (VND) stability over the coming quarters and have revised its forecast for the VND to average VND23,250/USD in 2020, from VND23,475/USD previously. The U.S. Treasury Department has branded Vietnam and Switzerland as currency manipulators while putting China and nine other countries on a watch list in … The year 2020 witnessed many ups and downs of the car market. Fitch Solutions, a subsidiary of Fitch Group, expected FDI inflow to be somewhat weaker in 2020 relative to 2019, adding this will provide less support to the dong. The vietnamese dong one of world vietnamese đồng wikipedia is the iraqi dinar investment a wise value company at nearly 100 billion 10 000 vietnamese dong banknote procter and s affiliate in india. Historically, the Vietnamese Dong … Nearly VND324 trillion (over $14 billion) was mobilised through G-bond auctions at the Hanoi Stock Exchange (HNX) in 2020, accounting for 108 percent of the set plan. Any effort to weaken the dong will be mild so as to avoid possible sanctions from the US given that Vietnam has remained on the US Treasury’s currency manipulator watchlist in its January 2020 report. Meanwhile, Brent oil prices are predicted to average US$44 per barrel in 2020, down from US$64.17 in 2019, reflecting Fitch Solutions' view for there to be some, but not extreme deflation in fuel and transport prices. Vietnamese Dong Free Trade Agreement Mergers & Acquisitions Value Added Tax World Trade Organization Special Sales Tax Public-Private Partnership US Dollar Gross Domestic Product General Statistics Office ABBREVIATION Agreement for Trans-Pacific. In recent years, an increasing number of regional firms have targeted the region in sectors such as agro-processing, marine exports, renewable energy, and tourism. Realized FDI for the first six months of 2020 was US$8.65 billion, 5% less than what was disbursed over the same period in 2019, and Fitch Solutions attributed the resilience so far to investments which have completed their due diligence up to the first quarter when borders were generally still open. That said, Fitch Solutions believed that any effort, if needed, to weaken the dong, would be mild and gradual, especially as the US has launched a currency manipulation inquiry against Vietnam in August. African swine fever, which ravaged Vietnam in 2019, reduced the country’s hog herd by about a fifth and Fitch Solution expected pork production to only recover somewhat closer to 2023. As a result, Fitch Solutions forecast the Vietnamese dong (VND) to average VND23,250/USD in 2020 and VND23,400/USD in 2021. As such, Fitch Solutions forecast the unit to average VND/USD23,600 in 2022. Accordingly, it is expected realized FDI to lag further behind 2019 levels over the coming months. The USDVND increased 1.0000 or 0.00% to 23,065.0000 on Friday January 15 from 23,064.0000 in the previous trading session. As 2018 unfolds, the mainstream financial markets – stocks and bonds – are looking increasingly risky. The Vietnamese dong will remain stable for the rest of the year but may appreciate by 0.5 percent in 2021, VNDirect Securities Corp forecast. Bond prices have been falling steadily in response to rising interest rates. The Vietnamese dong gained 0.2% this year, underperforming Asian peers including the Chinese offshore yuan, which rose about 7% in the same period. 3167 Tokyo Stock Exchange First Section) Launch of LP Gas Business into the Vietnamese Market Investment in the PETRO CENTER Group, a leading LP Gas Distributor in Vietnam In addition, an improved market access to the European Union following the ratification of the EU-Vietnam Free Trade Agreement (EVFTA) in August will also boost exports. 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