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
When will money market rates increase
Vietnam’s e-commerce websites are still receiving heavy investment to develop despite big losses, but when will these projects stop losing? The Vietnamese e-commerce market is one of the leading markets in the region for investment. According to Nielsen, the annual growth speed of the e-commerce market is 22% and is expected to hit US$10 billion in annual revenue by 2022 from the current US$4 billion. The Vietnamese e-commerce market shows huge potential for development and receives great attention from new investors. In a recent report by Topica Founder Institute, e-commerce attracted US$83 million of foreign investment through 21 deals. Startup SEA (used to be Garena, which was termed as a unicorn in Asia), ranked first among investors pouring capital into Vietnamese startups in 2017. SEA spent US$64 million acquiring 82% of the shares in Foody, a food delivery website and app. CyberAgent Ventures, a Japanese venture investment fund, continues its activities in Vietnam. In … [Read more...] about When will Vietnam’s e-commerce players stop “burning money”?
VietNamNet Bridge - The US Federal Reserve may adjust the prime interest rate once more, according to Can Van Luc, chief economist of the Bank for Investment & Development of Vietnam (BIDV). The interest rate increase won't have big impacts on the economy International mass media reports that the FED plans to lift the interest rate three times in 2018 to 2.1 percent per annum by the end of this year. The current interest rate is 1.25-1.5 percent. However, Luc believes the FED is likely to adjust the interest rate four times instead of three. He noted that the amount of money pumped into the US economy as a result of Trump’s policies is relatively high in the context of price increases and the weak dollar. This could be why the US FED has raised the interest rates to curb the inflation rate at below 2 percent. An analyst commented that the interest rate increase does not have a big impact on the global economy as it had in the past, because the adjustment is … [Read more...] about Vietnam should prepare for US Fed’s rising prime interest rate
Viet Nam News “Everyone, I will sell rose bouquets tomorrow in celebration of International Women’s Day. Those who are looking to give flowers to their girlfriends or classmates, please come to support me in front of Gate A of Hải Phòng University.” So wrote 26-year-old Trần Thị Hoa in one of her last Facebook posts on March 6. Early on the morning of March 7, Hoa and her friend Trần Thị Trang rode on motorbike to the flower market Đằng Hải in Hải An District in the northeastern port city of Hải Phòng. Not born to wealthy families, the pair intended to buy flowers and utilise their craft skills to make elaborate bouquets, aiming to make some money to cover their study and living expenses. On that fateful morning, Cao Huy Hoàng was driving a container truck for an export-import company along his usual route. Stopped at a red light, he saw that two trucks ahead of him were already occupying … [Read more...] about Road accidents: When will the pain end?
Lending interest rates have room to be reduced further due to the support of positive factors including the recent Government resolution that requires the State Bank of Vietnam (SBV) to strive for lowered interest rates. According to data from the National Financial Supervisory Commission, deposits from economic organisations and individuals have increased since January this year, which was up 0.5% compared to the end of 2017. Meanwhile, the average deposit interest rates in Vietnamese dong for over 12-month terms hovered around 6.55% per year in the first two months of this year, up 0.03 percentage point compared to the end of 2017. Several joint stock commercial banks pushed their long-term interest rates higher, including Viet Capital Bank, with the long term interest rates listed at 8.3% per year for 13-month term deposits, up 0.3% compared to the end of 2017 and 8.5% per year for 15-month term deposits. The slight increase in long-term deposit rates in the first months of this … [Read more...] about Interest rates expected to be lowered