The dong-dollar exchange rate rose by 1.4 per cent on the interbank market in the year to date The VND-USD exchange rate rose by 1.4 per cent on the interbank market and 2.3 per cent on the free market in the year to date, after having remained fairly stable in the past year. Nguyen Hong Khanh, analysis director at Vietnam International Securities JSC (VIS), quoted statistics saying that the Vietnamese dong had lost more than 30 per cent in value against the US dollar in the past decade. The devaluation was most serious during 2008-2011, when the local economy fell into a slump amidst the global economic crisis, and then again in 2015, when the Chinese Yuan was devalued. Exchange rate volatility has often had serious impacts on the performance of businesses, especially for firms that took up dollar-denominated loans or have to import materials to serve their production and business activities. As the current global financial market is hard to predict, it is extremely hard for … [Read more...] about Businesses tackle exchange rate volatility with flexible solutions
Why firms forecast exchange rates
Vietnam’s Q2 GDP growth forecast: 5.6%
Viet Nam’s GDP in the second quarter of this year is forecast to expand 5.6 per cent or 6.27 per cent, depending on two scenarios, expert said. Production line at the Knauf Vietnam Co Ltd’s new gypsumboard plant in the northern port city of Hai Phong. Dang Duc Anh, director of the National Centre for Socio-Economic Information and Forecast (NCEIF)’s analysis and forecast department, said this at a discussion on the country’s macro-economic growth forecast, held in Hanoi on Wednesday. Under the first scenario of 5.6 per cent GDP growth, Anh said that processing and manufacturing industries in Q2 would grow higher than in the first quarter, and the slowdown of the mining industry would be lower than that in Q1. The foreign exchange rate would be relatively stable and credit growth would continue to rise in Q2, Anh said, adding that disbursement of State investment capital would be also higher than Q1. In the second scenario, the GDP would grow 6.27 per … [Read more...] about Vietnam’s Q2 GDP growth forecast: 5.6%
VNI up, signals local exchange’s bright future
VNI up, signals local exchange’s bright future (29-07-2008) HA NOI — The week got off to a bright start as domestic indexes jumped yesterday, making a happy anniversary for the 8th birthday of HCM City Stock Exchange. The VN-Index closed the session at 434.64, an increase of 1.21 per cent or 5.18 points. Positive economic news, including Foreign Direct Investment (FDI) figures coming in at US$31.6 billion in the first six months, helped encourage investors at the beginning of the week, according to the analysis department of Mirae Asset Securities. The optimism was further pushed along by limited July inflation rates of 1.13 per cent, and the lowest monthly trade deficit seen this year at $800 million. "The pressure of high oil prices was definitely replaced by good news from the general economy. Based on this, we can forecast that the VN-Index will gain slightly this week, as will the HASTC-Index." Trading volume stayed high at 14.22 million shares, with a total revenue of … [Read more...] about VNI up, signals local exchange’s bright future
Firms pushed against the wall
The tough business climate and tight capital sources continue to take a toll on firms. Last week, under-performing Viet Hai Shipping and Real Properties Corporation (VSP) saw its shares offloaded from the Hanoi Stock Exchange (HNX). Falling shipping fees and investment ventures into non-core areas made VSP incur losses in three consecutive years with accrued losses exceeding VND800 billion ($38 million) and long-term debts surpassing VND1,700 billion ($80.9 million). At this time, it was extremely hard for VSP to source new investment capital, except selling its assets. By late of 2012’s first quarter, its fixed assets worth more than VND1,138 billion ($54.2 million). Even when the company sells ships, this money is reportedly only enough for it to pay the interest, but not on the original loans. Several other listed firms like Viky Plastic Company (VKP), Cadovimex (CAD) face the same fate as these firms also ran at losses for three consecutive years. Several years … [Read more...] about Firms pushed against the wall
BUSINESS IN BRIEF 1/3
ASEAN Business Forum opens in Bangkok Nearly 600 entrepreneurs and investors from throughout Southeast Asia and the world attended the ASEAN Business Forum 2013 which opened in Bangkok on February 27. The forum entitled “Challenges and Priorities towards AEC 2015: Capturing the value within”, will contribute to improving awareness about the ASEAN Economic Community (AEC) and the competitive edge for ASEAN members, especially Thailand. ASEAN Secretary General Le Luong Minh said that ASEAN is in the process of establishing a common community by 2015 based on the three pillars of political security, economics and culture, with the emphasis on economics. The establishment of the AEC will contribute to ensuring the success of ASEAN’s integration process. Currently, ASEAN is successfully implementing the planned stages of building the AEC. However, there is much to be done and ASEAN member states should double efforts to ensure that the AEC is essentially … [Read more...] about BUSINESS IN BRIEF 1/3