Adjusting the exchange rate band in Vietnam: 70% of export contracts have the opportunity to benefit

Published 2022년 10월 26일

Tridge summary

The State Bank of Vietnam has expanded the spot exchange rate range between the Vietnamese Dong and USD from ±3% to ±5% effective October 17, 2022, in response to international financial market trends. This move aims to maintain the balance of foreign currency supply and demand, and stabilize the market, despite potential impacts on business activities, especially for export-import enterprises. The article highlights the effects of the depreciation of China's currency and Thailand's baht on Vietnam's cassava export market and emphasizes the importance of businesses diversifying import-export markets and payment currencies to mitigate risks. It also stresses the need for enterprises to monitor exchange rate fluctuations, update on economic factors, and increase the competitiveness of their exports to navigate the challenges posed by fluctuating exchange rates and economic conditions.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The State Bank's adjustment of the spot exchange rate range between Vietnam Dong and USD from ±3% to ±5% since October 17 is considered to be in line with the objective trend from the impact factors. of the international financial market, ensuring the supply-demand relationship of foreign currencies and stabilizing the market, supporting the recovery of economic growth. Certain effects According to many experts, the change in exchange rate variables, in addition to affecting the loans of enterprises, also directly affects the business activities of export and import enterprises. If exporting enterprises have less need to import raw materials for processing and processing, they can benefit from the appreciation of the US dollar, on the other hand, importers have to pay an additional cost to offset the difference caused by this fluctuation. The latest information from the Import-Export Department (Ministry of Industry and Trade) shows that although China is still the largest market ...

Source: Vov