Finance

By Joe Fotalattee

The central bank’s deputy governor Dao Minh Tu said at a news conference on Tuesday that “The central bank will continue its purchases of foreign currencies.”.

Vietnam is working to strengthen foreign exchange reserves by acquiring more U. S. dollars to support its dong currency.

In order to increase their own reserves or supply them to the nation’s banks, central banks intervene in the foreign exchange market. Frequently, they want to keep the exchange rate stable.

An estimate of Vietnam’s foreign exchange reserves this time last year was at $100 billion.

Vietnam is United States’ Seventh-Largest Trading Partner.

By Joe Fotalatte

According to Bloomberg data, Vietnam is on track to surpass the United Kingdom and enter the top seven trading partners of the United States this year.

The UK would be absent from the group for the first time since 2004, according to the news outlet.

According to Census Bureau data, the UK’s share of trade with the US fell by 2.6% during the first ten months of the year, while Vietnam’s increased to 2.7%.

For nearly two decades, the top seven US trading partners in terms of goods have consistently been Canada, Mexico, China, Japan, Germany, and the Republic of Korea.

According to Vietnam News, Nguyen Văn Nên, secretary of the municipal Party’s Committee, stated at a recent meeting that the city will experience challenges in 2023 due to a global slowdown and lowered its growth target to 7.5-8% next year.
The city has set a goal of bringing in 4–5 million foreign visitors to earn five billion USD in revenue.

The city intends to maintain a 60% service-based economic structure with a labor growth of 7%. However, post-pandemic economic numbers look promising. The city’s gross regional domestic product (GRDP) increased by 9.03% in 2022.

Exports from the city were worth $49 billion USD, and imports were worth $66 billion USD, both up 10%.

Tourism grossed over five billion USD. Three and a half million foreign visitors visited the city this year, a fraction of neighboring countries with welcoming visa policies. For example, Thailand received over 10 million visitors in 2022, generating 16 billion USD in tourism revenue.

Fortunately, Vietnamese were buying more than 36 billion USD in sales of goods and services, an increase of 30 percent from the previous year.

State Backs Local Banks, Curbs Inflation, And Ensures Supply For Tet

By Joe Fotalattee

To maintain the ability of credit institutions to make payments, particularly at the end of the year when demand for funds frequently peaks, the State Bank of Vietnam is willing to offer liquidity, according to its deputy governor, Dao Minh Tu.

According to Vietnam News, Tu stated at a meeting last week that “the central bank will ensure liquidity for all commercial banks, including small ones, under all circumstances.”.

According to him, the current monetary policy ensures capital availability, liquidity, and inflation control for this year and the following year. Credit institutions must adhere to operational safety indicators adhere to the SBV’s requirements, per Tu’s orders.

After recent interest rate hikes caused a credit crunch in the real estate and financial markets, the central bank increased the credit growth cap for banks by two percentage points from its earlier target of 14 percent. The policy change allows banks to lend VN240 trillion more (US$9.7 billion) to businesses.

To support businesses, sixteen commercial banks have agreed to cut interest rates by 0–3 percentage points annually, or about VN3–5 trillion. Agribank, Vietcombank, VietinBank, and BIDV were among them, as were a few smaller institutions like SHB, HDBank, and SeABank.

Authorities have created intricate plans to guarantee goods for cities with dense populations and high consumer demand, like Hanoi, Danang, and Ho Chi Minh City.

The Hanoi Department of Industry and Trade’s acting director, Trần Thị Phương Lan, told Vietnam News that the forecast calls for an increase in shopping demand ranging from 15% to 30%, depending on the item, from the end of 2022 through the Lunar New Year in 2023.

With the help of 32 production, trading, and supply companies, Hanoi has a program to increase … Read more