vietnam foreign reserves

Foreign Reserves: Gold data was reported at 430.980 USD mn in Mar 2018. During the first 10 months of 2022, the State Bank of Vietnam (SBV) was forced to sell an estimated 20% of total foreign exchange reserves to stabilize the exchange rate. Expected and actual currency depreciation, 20102019, Calculation of Vietnams real exchange rate, 20152020, Note(s): End-of-year values are used for exchange rates; a GDP deflator of 2% is estimated for Vietnam in 2020. Officials to prioritize exchange rate stability to curb prices, Better inflation to allow a more accommodative monetary policy. A weak currency tends to boost exports and hamper imports, although this issue is complicated with many variables and views [2]. Heres what this latest rate hike might mean for the local currency. Earlier this week, Reuters reported that Vietnam was preparing for the possibility of widening its trading band a second time. U.S. Department of the Treasury (2021). Vietnam Briefing has developed into a premium source for insight on doing business in Vietnam. Having said this, some real appreciation might discourage more simple assembly industries and spur local firms to raise productivity, if support policies helped the firms. Some market analysts estimate about $20 billion has been sold so far this year. The SBV sets the price of the local currency each day. The implications are meaningful for the adjustment of national monetary strategy to avoid a similar situation in the future. This records an increase from the previous number of 421.740 USD mn for Dec 2017. Foreign Reserves: Total Include Gold data was reported at 87.131 USD bn in Dec 2022. The data is categorized under Global Databases Vietnam Table VN.KA004: Foreign Reserve. Vietnam - Foreign Reserves, Months Import Cover, Goods - actual values, historical data, forecasts and projections were sourced from the World . The data is categorized under Global Databases Vietnam Table VN.KA004: Foreign Reserve. Full and unlimited access to CEIC data for multiple users. Instant access to full history data in excel. Learn more about how Statista can support your business. According to data published in March 2022, Vit Nam's foreign exchange reserves are at a record high of nearly $110 billion. License number: 71/GP-CBC, Ministry of Information and Communications, September 22, 2021. The dong depreciates or weakens if it takes more dong to buy one dollar. [Online]. In the wake of a number of troubles facing Apax Leaders, once one of Vietnams biggest English language training providers, foreign firms may find a fertile market entry opportunity. The data reached an all-time high of 18.965 USD mn in 1974 and a record low of 0.000 USD mn in 1981. Unemployment would increase [10]. Foreign Reserves: Annual: IMF data was reported at 0.007 USD mn in 2017. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. Though its been only days since the US Federal Reserve raised interest rates, the value of the VND is showing signs of a continued decline. Exports are running at USD 24 billion a month and a quarter are to the US. Thus, the trade gap may begin to narrow this year if the trend holds up (General Statistics Office of Vietnam, 2021a). A stronger currency might also mean fewer urban factory jobs if productivity did not increase to offset higher wage costs in dollar terms. "This will likely take the form of another de-facto devaluation of the dong and/or further rate hikes," he said. To find out more about the cookies we use, see our Cookies Policy. Foreign Reserves: Foreign Exchange data was reported at 84.693 USD bn in Dec 2022. To find out more about the cookies we use, see our Cookies Policy. The country's Non Performing Loans Ratio stood at 2.0 % in Dec 2022, compared with the ratio of 1.8 % in the previous quarter. Foreign Reserves: Total Include Gold data remains active status in CEIC and is reported by CEIC Data. Vietnams foreign exchange reserves have climbed to a record of nearly $110 billion, but experts say it needs to be increased further to prevent possible economic "shocks". A surplus of 2% of the GDP is not normally regarded as excessive (International Monetary Fund, 2021b). https://www.wsj.com/articles/vietnams-goldilocks-growth-phase-is-over-11667220570. Then you can access your favorite statistics via the star in the header. 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A stable real exchange rate is not what theory predicts from growing trade surpluses. There is no data available for your selected dates. The gold standard broke down after First World War as central banks increasingly issued currency not tied to gold or changed the price of gold so more money could be created. As a Premium user you get access to the detailed source references and background information about this statistic. 1, pp. When the money supply increases rapidly, there may be growing credit quality problems. Fantasy gaming company Dream11 will be the lead sponsor of India's national cricket team for three years, the country's cricket board announced on Saturday. The data reached an all-time high of 571.516 USD mn in Sep 2012 and a record low of 43.579 USD mn in Mar 1996. The sharp improvement in Vietnams bilateral and overall trade balance is due largely to rising labor costs in China and trade frictions between the USA and China. The third option has advantages and disadvantages. This records an increase from the previous number of 36.906 USD bn for 2016. The Vietnam Briefing Magazine was first published in 2009, and is contributed to by investment professionals based in Vietnam. Foreign Reserves: Gold data remains active status in CEIC and is reported by International Monetary Fund. We start at the end of 2010 as a base [6] up to year-end 2019. With many banks already maxing out their credit limits, that demand is still strong. The euro and Swiss monetary policy. VNA Thursday, January 19, 2023 10:34 We produce material for foreign investors throughout Eurasia, includingASEAN,China,India,Indonesia,Russia& theSilk Road. Another analytical approach is simply to see if the relative real value of a currency has changed compared to the dollar. Data are in current U.S. dollars. However, the monitoring and discussions will continue. Reuters, available at: https://www.reuters.com/article/germany-economy-trade-idUSL5N2641DF (accessed 18 April 2021). Business Solutions including all features. "Vietnam has been able to achieve good growth in its currency exchange reserves in the last four years," economist Can Van Luc told VnExpress International. In 1975, however, renewed fighting saw communist-supported North Vietnamese forces pushing closer to Saigon, the capital of South Vietnam, which was still a U.S. ally. Data from Asian Development Bank is licensed under CC BY 3.0 IGO, Source(s): Asian Development Bank (2020), U.S. Bureau of Economic Analysis (2021). Treasury statements about Vietnams currency are referred to, which then are analyzed. Martin, M.F. Explore the most complete set of 6.6 million time series covering more than 200 economies, 20 industries and 18 macroeconomic sectors. Huynh, B.-C. (2018). Foreign Reserves: Special Drawing Rights data was reported at 377.562 USD mn in Sep 2018. Vietnam has to decide how to negotiate its trade relations with the US. Nasdaq, available at: https://www.nasdaq.com/articles/u.s.-treasury-lists-switzerland-and-vietnam-as-currency-manipulators-2020-12-16 (accessed 18 April 2021). The gold component of these reserves is valued at year-end (December 31) London prices. In Vietnam, Foreign Exchange Reserves are the foreign assets held or controlled by the country central bank. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Explore MacroVar financial knowledge base structured by professional fund managers and economists. International Monetary Fund (2021b). Of course, the US largely caused these growing deficits by placing tariffs on Chinese exports, thus directing FDI into Vietnam and other countries. Heavy tariffs would damage Vietnams economy. "The government needs to focus on increasing exports and attracting foreign companies, remittances and tourism". If the dong rate jumped from 20,000 to 22,000, a Vietnamese importer would have to pay 10% more dong for a dollars worth of imports, and import prices would rise. Vietnamese exports increased by 22% and imports by 26% in the first quarter of 2021. As a result, Vietnam, specifically the State Bank of Vietnam (SBV), has worked hard to keep the value of the Vietnamese dong (VND) stable using a number of levers and pulleys unique to the Southeast Asian nation. The US might be reluctant to antagonize so many allies when it wants to balance Chinas increasing assertiveness. Intel products Vietnam: 10-Year investment impact study report 2006-2016, available at: https://fsppm.fulbright.edu.vn/en/policy-papers/policy-research/intel-products-vietnam-10-year-investment-impact-study-report-2006-2016/ (accessed 18 April 2021). Foreign trade - US trade with Vietnam, available at: https://www.census.gov/foreign-trade/balance/c5520.html (accessed 18 April 2021). Several studies have shown that the value added in the fast-growing electronic export sector is low, for instance, in the case of Intel where local value added mainly comes from other foreign firms (Huynh, Huynh, Nguyen & Do, 2018). The question this raises for currency management is what strategy supports increasing the value added? The International Economy (2016) surveyed 30 experts on the impact of currency devaluation. This page provides - Vietnam Foreign Exchange . For editorial matters please contact ushereand for a complimentary subscription to our products, please clickhere. Visit their website to see how their services can help your business succeed. Foreign Reserves: Annual: Gold data is updated yearly, averaging 206.919 USD mn from Dec 1995 to 2017, with 23 observations. If there is a trade or balance of payments surplus, it is not hard to let the currency appreciate. This records a decrease from the previous number of 380.774 USD mn for Jun 2018. When real interest rates on government bonds are below zero in the US, and nominal interest rates are negative in Europe, it is hard to argue what constitutes currency manipulation. Directly accessible data for 170 industries from 150+ countries Vietnam is on the low end of reserves relative to its imports, as shown in Figure 3. The year 2020 does not have complete data and in any case, is distorted by the coronavirus shock. A 2018 Japan External Trade Organizations (JETRO) report stated that for all manufactured exports, Vietnam provided 34% of inputs locally compared to 57% for Thailand and 68% for China (Huynh, 2018). As Vietnam's inflation continues to stay under control and the Fed's decision to raise its interest rates for the first time since 2018 is expected to have limited impacts on the former's . The full terms of this license may be seen at http://creativecommons.org/licences/by/4.0/legalcode. Vietnam has dipped into its reserves to the tune of around US$20 billion this year by some estimates (Vietnam does not regularly publish details of its foreign reserves). API users can feed a custom application. Its Money Supply M2 increased 541.7 USD bn YoY in Nov 2022. This is on the back of a series of rate hikes since the beginning of the year aimed at limiting near 40-year high inflation in the United States. The Treasury also looks at the increase in foreign exchange reserves, among other variables. This leads to assembly investment that is less likely to remain in Vietnam and makes it more likely that if labor costs rise, the factories will move. "The government needs to focus on increasing exports and attracting foreign companies, remittances and tourism". Dezan Shira & Associatesprovide business intelligence, due diligence, legal, tax and advisory services throughoutthe Vietnamand theAsian region. The main challenge is to make improvements in the real economy and productivity, and to have the currency match those changes. The Swiss currency intervention was 14% of the GDP, while the US Treasury threshold is 2%. The SBV has also been using Vietnam's foreign currency reserves to shore up the VND. Since the beginning of the year, the VND has lost only about nine percent of its value to the US dollar. The base year does not indicate an over-depreciated currency (World Bank, 2020b). However, the real value of the dong has been stable against the dollar since 2015, and in 2015, Vietnam had an overall trade deficit. Foreign e-commerce firms selling goods or services in Vietnam are now required to pay foreign contractor tax. International Monetary Fund (2021a). The base salary (not to be confused with the minimum wage) is rising and this will change social and health insurance caps. These individuals are beginning to lead businesses. These suppliers tend to follow the major FDI exporters to any country they move to. But Luc said the reserves need to be even higher to absorb the possible "shocks" from negative global economic changes. The real value of the Vietnamese dong has increased since 2010. Then, prices were more flexible. The data reached an all-time high of 428.816 USD mn in Jun 2011 and a record low of 0.000 USD mn in Jun 1993. The SBV has a number of tools at its disposal that it uses to stabilise the exchange rate and keep inflation in check. Data published Yearly by Central Bank. By the time President Gerald R. Ford took office in 1974, the United States' involvement in the Vietnam War had been radically reduced. As a result, the bilateral trade deficit grew from USD 3132 billion in 2015 and 2016 to USD 70 billion in 2020 (U.S. Census Bureau, 2021a). discloses FX reserves data or the amount of dollars spent. Lawder, D. (2020). The ideal entry-level account for individual users. You only have access to basic statistics. For assistance with investmentsintoVietnamplease contact us atvietnam@dezshira.comor visit us atwww.dezshira.com. Many of these FDI exports were destined for US markets. (Eds.). The Euro Zone as a whole has a surplus of less than 2%. As a result, Vietnams exports, as well as its trade surplus, have grown rapidly. Recently, Vietnams trade surplus has been increasing, particularly with the United States. Currency regime theories are briefly reviewed, and USA. Lan, A., & Huy, H. (2021). Vietnam Briefings Doing Business guide provides vital economic, geographic, and regulatory insights for business investors, managers, or expats to understand Vietnams. Some increased imports from the US might make negotiating easier, however. 24-May-23 Vietnam: Central Bank cuts the benchmark refinancing rate by another 50 basis points in May The data is categorized under Global Databases Vietnam Table VN.KA004: Foreign Reserve. This allows the State Bank to avoid triggering a US Treasury condition by not intervening in spot currency markets by buying dollars (Nguyen & Westbrook, 2021). Fewer physical inputs are produced in Vietnam compared to other exporting countries, and Vietnamese firms are rarely major providers of inputs to many assembled exports. Germany to run worlds largest current account surplus in 2019 Ifo. Nguyen, P., & Westbrook, T. (2021). Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. It would be up to the Vietnamese government if the terms of any deal were worth the costs. Reuters, 11(February), available at: https://www.reuters.com/article/us-vietnam-forex-intervention-exclusive-idUSKBN2AB1I4 (accessed 18 April 2021). We project foreign-exchange reserves will continue to cover around 3.5 months of current external payments in 2021 and 2022, compared with a . Speech, Swiss National Bank, available at: https://www.snb.ch/en/mmr/speeches/id/ref_20160502_tjn/source/ref_20160502_tjn.en.pdf. You need at least a Starter Account to use this feature. Ironically, these clauses are in the Trans-Pacific Partnership (TPP) that the US negotiated with other nations but then decided not to enter. Sign up for your complimentary subscription to our weekly newsletter here. The IMF would make loans available with conditions usually fiscal tightening if a nation ran out of dollars. The US has threatened to impose tariffs on Vietnams exports due to what the US Treasury calls unfair currency manipulation. However, lower farm prices in dong from a stronger currency would hurt agricultural producers and accelerate movement out of the countryside into cities. However, such ingenious policies may not prevent tariff action. However, Germany and the Netherlands use the euro that covers many countries. Meet the firm behind our content. ", World Bank, Total reserves in Vietnam from 2011 to 2021 (in billion U.S. dollars) Statista, https://www.statista.com/statistics/733772/vietnam-total-reserves/ (last visited July 01, 2023), Total reserves in Vietnam from 2011 to 2021 (in billion U.S. dollars) [Graph], World Bank, May 10, 2023. The right policy mix depends on the pace of change not only in the currency but also in the modernization of agriculture and Vietnamese firms that supply parts for exporters [12]. Statista. U.S. Census Bureau (2021b). read more. But Luc said the reserves need to be even higher to absorb the possible "shocks" from negative global economic changes. In fact, the real dong to dollar exchange rate was roughly stable, as the data below indicate. to incorporate the statistic into your presentation at any time. Vietnam Foreign Reserves: Total Include Gold data was reported at 87.131 USD bn in Dec 2022. The data reached an all-time high of 107.437 USD bn in Dec 2021 and a record low of 948.314 USD mn in Mar 1995. Dollars). Since 2010, Vietnams currency has appreciated, and since 2015, the government has kept the Vietnamese dong (VND) stable in real terms against the dollar. Vietnam, for its part, has to decide how to respond to charges of currency manipulation. In Lo, F., & Yeung, Y. Buy for $99 More Indicators for Vietnam Check out our pricing options. The data reached an all-time high of 19.323 USD mn in Mar 1975 and a record low of 0.000 USD mn in Dec 1981. The purpose of this paper is to explain why Vietnam has been charged as a currency manipulator by the USA, and why those charges are less than conclusive, as of May 2021, no immediate tariffs were imposed. More recently, a report by VNDirect says the central bank got hold of .
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