Some market analysts estimate about $20 billion has been sold so far this year. The data reached an all-time high of 419.669 USD mn in 2009 and a record low of 0.000 USD mn in 1992. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Instant access to full history data in excel. According to public exchange rate data, the dong appreciated again in late 2020 and early 2021. FDI increased by 9.2 percent last year to $31.15 billion despite the impact of the Covid-19 pandemic. 24-May-23 Vietnam: Central Bank cuts the benchmark refinancing rate by another 50 basis points in May Vietnam has benefited from rising US-China trade tensions and growing costs of labor in China. It would be up to the Vietnamese government if the terms of any deal were worth the costs. In this section, we look at the change in the real and nominal exchange rates of the dong and several other currencies against the dollar, as well as overall trade balances. "Total reserves in Vietnam from 2011 to 2021 (in billion U.S. Vietnam foreign exchange reserves stable - Bo VietNamNet 32-42. https://doi.org/10.1108/FREP-02-2021-0018, Published in Fulbright Review of Economics and Policy. According to a Reuters story, in January 2021 the State Bank of Vietnam offered to buy dollars in the forward market to keep the dong from appreciating. For assistance with investmentsintoVietnamplease contact us atvietnam@dezshira.comor visit us atwww.dezshira.com. HANOI/SINGAPORE (Reuters) - After being branded a "currency manipulator" by the United States in December for trying to keep the dong from rising in value, Vietnam is again intervening in. Have modest real appreciation and try to negotiate with the US to avoid tariffs. Directly accessible data for 170 industries from 150+ countries Subsidiary of VnExpress A single cookie will be used in your browser to remember your preference not to be tracked. The SBV sets the price of the local currency each day. Although the government said the local value added was 37% in electronics, much of this comes from foreign companies that brought their suppliers to Vietnam rather than from Vietnamese firms. The data reached an all-time high of 48.693 USD bn in 2017 and a record low of 1.320 USD bn in 1995. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. For non-personal use or to order multiple copies, please contact 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 . High trade surpluses and growing foreign exchange purchases were cited. Unemployment would increase [10]. Data published Yearly by Central Bank. This has been particularly hard felt in the fuel industry where not only has the price of oil increased due to the decline in value of the VND, but the price of fuel itself has also risen. we can help, according to SBV Governor, Nguyen Thi Hong, 90 percent of Vietnamese workers overseas, particularly hard felt in the fuel industry, Why SEA Craft Beer Brewers are Choosing Vietnam, Foreign Contractor Tax in Vietnam: A Complete Guide for 2023, Demand deposits and deposits with terms of less than a month, Deposits with terms ranging from 1-6 months, Deposits in VND at Peoples Credit Funds of Vietnam and microfinance institutions, Overnight loans through interbank electronic payments and loans from the SBV to cover capital shortfalls when clearing payments to credit institutions, Credit institutions and foreign bank branches (except for Peoples Credit Funds and microfinance institutions) short-term loan interest rate, Peoples Credit Funds and microfinance institutions short-term loan interest rate. Speech, Swiss National Bank, available at: https://www.snb.ch/en/mmr/speeches/id/ref_20160502_tjn/source/ref_20160502_tjn.en.pdf. License number: 71/GP-CBC, Ministry of Information and Communications, September 22, 2021. The International Economy (2016) surveyed 30 experts on the impact of currency devaluation. The data is categorized under Global Databases Vietnam Table VN.KA004: Foreign Reserve. 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). The data is categorized under Global Databases Vietnam Table VN.KA004: Foreign Reserve. This records an increase from the previous number of 36.906 USD bn for 2016. What is Foreign Exchange Reserves in Vietnam? A single cookie will be used in your browser to remember your preference not to be tracked. The euro and Swiss monetary policy. However, Germany and the Netherlands use the euro that covers many countries. United Nations University Press, available at: https://archive.unu.edu/unupress/unupbooks/uu11ee/uu11ee19.htm#the%20singapore%20johore%20riau%20growth%20triangle:%20an%20emerging%20extended%20metropolitan%20reg (accessed 18 April 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. We start at the end of 2010 as a base [6] up to year-end 2019. Treasury statements about Vietnams currency are referred to, which then are analyzed. The VND is on a managed float, similar to a crawling peg, to the US dollar. Buy for $99 More Indicators for Vietnam Check out our pricing options. There is no data available for your selected dates. Thus, the trade gap may begin to narrow this year if the trend holds up (General Statistics Office of Vietnam, 2021a). Advanced users can use our Python/R/Matlab packages. This resulted in the reduction of Vietnam's foreign reserves below the IMF recommended threshold, or over 3-month worth of imports. Vietnam Foreign Reserves: Annual: Foreign Exchange, Vietnam Foreign Reserves: Annual: Special Drawing Rights, Vietnam Foreign Reserves: Annual: Total Include Gold, Vietnam Foreign Reserves: Special Drawing Rights. The real VND/USD exchange rate is the nominal rate divided by the Vietnam/US inflation index. Data are in current U.S. dollars. See here for a complete list of exchanges and delays. These limits are set out at the beginning of the year based on the target inflation rate as well as the credit ranking of the bank (banks with healthier balance sheets get higher limits), according to SBV Governor, Nguyen Thi Hong. However, the new US administration could push for labor or environmental concessions, such as less pollution or controls or carbon. However, by holding the real exchange rate stable against the dollar, Vietnam has attracted the attention of the US which is upset with the growing bilateral trade imbalances. "The government needs to focus on increasing exports and attracting foreign companies, remittances and tourism". Vietnams economy and U.S. Trade: Key Issues in 2021, available at: https://crsreports.congress.gov/product/pdf/IF/IF11753 (accessed 18 April 2021). Exclusive: Vietnam intervened in currency markets weeks after U.S It is not likely that such Buy American campaigns will close the bilateral gap. 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. When the money supply increases rapidly, there may be growing credit quality problems. 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. Instant access to full history data in excel. 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. You only have access to basic statistics. The dong depreciates or weakens if it takes more dong to buy one dollar. Foreign Reserves: Annual: Gold data is updated yearly, averaging 206.919 USD mn from Dec 1995 to 2017, with 23 observations. Then, prices were more flexible. With many banks already maxing out their credit limits, that demand is still strong. Vietnam, for its part, has to decide how to respond to charges of currency manipulation. Foreign Reserves, Months Import Cover, Goods in Vietnam was reported at 0.23451 in 2018, according to the World Bank collection of development indicators, compiled from officially recognized sources. On October 17, however, this was widened to 5 percent giving the VND more room to move. Subscribing grants you this, plus free access to our articles and magazines. 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. Buying a large amount of foreign currency means that the SBV has to pump a large amount of money into the economy. [Online]. Vietnams foreign reserves are finite and limiting credit can only work for so long before it begins to drag on the economy. It is hard to imagine identifying a sufficient number of US exports to substantially close the nearly USD 70 billion gap. This designation was removed in April 2021 (Yueh, 2015; Lawder, 2020). It publishes business news concerning foreign direct investment into Vietnam, including the most important tax, legal and accounting issues. U.S. Census Bureau (2021b). However, some nations used this system to keep their currency values low and along with other policies, ran up huge trade surpluses [1]. Although other currencies are important, the dollar remains predominant. Exclusive news, data and analytics for financial market professionals, Reporting by Phuong Nguyen, additional reporting by Tom Westbrook in Singapore Americans still support aiding Ukraine. The expected change in these exchange rates against the US dollar is based on the usually higher rate of inflation in Asian economies. Explore MacroVar financial knowledge base structured by professional fund managers and economists. Foreign Reserves: Total Include Gold data was reported at 87.131 USD bn in Dec 2022. Therefore, the real value of the dong did not cause big changes in the US trade surplus. Gross domestic product: Implicit price deflator, available at: https://fred.stlouisfed.org/series/GDPDEF/ (accessed 18 April 2021). Trading Economics (2021). In 2019, Switzerland, also cited for currency manipulation, had a trade surplus equal to 5%. Allowing modest appreciation while buying more US goods would show good faith. 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. On the other hand, Germanys 2019 trade surplus was 6.7%, and the Netherlands was 8% of the GDP. (Eds.). Thats just over 18 percent of its reserves that have been spent buying up VND a sizable chunk of its rainy-day fund. The Euro Zone as a whole has a surplus of less than 2%. Vietnam Central Bank Buys Dollars to Shore up Reserves After Selloff statistic alerts) please log in with your personal account. This will be a complex assessment. International Monetary Fund (2021b). Foreign Reserves: Foreign Exchange data was reported at 84.693 USD bn in Dec 2022. The data is categorized under Global Databases Vietnam Table VN.KA004: Foreign Reserve. Foreign Reserves: Total Include Gold data remains active status in CEIC and is reported by CEIC Data. That is why the overall trade balance is relevant rather than a bilateral trade balance. If there is not enough, the price rises. Vietnam is out of step with the rest of Asiain terms of growth, dollar reserves and monetary policy. Includes Foreign Exchange Reserves on 115 economies standardised by CEIC. In fact, the State Bank of Vietnam has to effectively buy dollars (increase foreign exchange reserves) to keep the real exchange rate stable. 2021 CEIC Data, an ISI Emerging Markets Group Company. Vietnam should not mind if it is able to make changes in its real productivity and its currency strengthens as a result. Germany has run surplus of 78% of their gross domestic product (GDP) year after year, and this is viewed by the European Commission as more than sustainable (Wagner, Seythal & Carrel, 2019). A temporary argument is that Vietnam foreign exchange reserves are not high relative to imports. We project foreign-exchange reserves will continue to cover around 3.5 months of current external payments in 2021 and 2022, compared with a . Macleod, S., & McGee, T.G. Allow its currency to appreciate to reduce the countrys trade surplus. Vietnams foreign-exchange reserves excluding gold are forecast to rebound to $95 billion by the end of the year as the central bank rebuilds its stockpile, Moodys Investor Service said. "Total Reserves in Vietnam from 2011 to 2021 (in Billion U.S. International Economy (2016). Many firms in Taiwan, South Korea and Japan provide inputs for exports to the US worth far more than Vietnams value added. A weaker currency helps exporters if domestic prices remain the same. The dong is normally quoted as (say) VND 20,000 is equal to USD 1. The strength or weakness of the dong should be measured against a basket of relevant currencies, not just the dollar. Saigon, later called Ho Chi Minh City, would soon fall to the North and the process of . But Luc said the reserves need to be even higher to absorb the possible "shocks" from negative global economic changes. 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. Save up to $15 with TurboTax coupon May 2023, Epic Bundle - 3x Expert Stock Recommendations, 15% Off DIY Online Tax Filing Services | H&R Block Coupon, 10% TopResume Discount Code for expert resume-writing services, Groupon Deal of the Day - June: Up to 91% OFF w/ Groupon Coupon. Thailand had nearly the same inflation rate as the US and kept its currency fairly stable in nominal terms, about what theory would predict. However, trillions of dollars of government debt now have negative real or even negative nominal interest rates [3]. Foreign Reserves: Foreign Exchange data remains active status in CEIC and is reported by CEIC Data. This is in contrast to much bigger devaluations among its regional peers. Vietnam's Emission Reductions program is working to increase forest cover . Analysts argue that US-China trade tensions contributed to Vietnams exports to the US (Martin, 2021). This website stores cookies on your computer. This is since Vietnam's foreign reserves have been sizable and the balance of payments is supported by a trade surplus and strong inflows of remittance from abroad. A comparative approach is applied using economic data on trade balances, inflation, exchange rates, and foreign exchange reserves from Vietnam, other Asian nations, and the USA. If more dollars and other foreign currencies are earned through exports and capital inflows than are spent on imports and capital outflows, the real dong exchange rate should appreciate. Foreign Reserves: Annual: IMF data is updated yearly, averaging 0.008 USD mn from Dec 1955 to 2017, with 63 observations. Program location: 6 provinces in Vietnam's North Central Region. Instant access to full history data in excel. Vietnamese exports increased by 22% and imports by 26% in the first quarter of 2021. BBC News. The International Economy Winter 2016, available at: http://www.international-economy.com/TIE_W16_CurrencyDevalSymp.pdf (accessed 18 April 2021). Dapice, D. (2021), "Vietnams currency management: theory, practice and reality", Fulbright Review of Economics and Policy, Vol. The full terms of this license may be seen at http://creativecommons.org/licences/by/4.0/legalcode. It has now raised its policy rates twice in four weeks. VNA Thursday, January 19, 2023 10:34 Available: https://www.statista.com/statistics/733772/vietnam-total-reserves/, Total reserves in Vietnam from 2011 to 2021, Immediate access to statistics, forecasts & reports, Number of new businesses for financial, banking and insurance Vietnam 2016-2021, Number of financial institutions Vietnam 2020, by type, Value of total customer deposits in Vietnam 2016-2020, CAR of the banking sector Vietnam 2012-2021, by ownership, ROE of the banking sector Vietnam Q3 2022, by bank type, ROA of the banking sector Vietnam Q3 2022, by bank type, Interest rate for deposits Vietnam 2015-2021, by type, Interest rate for loans Vietnam 2015-2021, by currency and term length, Number of bank cards in circulation Vietnam Q4 2019-Q1 2022, by quarter, Leading joint stock commercial banks Vietnam Q3 2022, by total assets, Leading joint stock commercial banks Vietnam Q3 2021, by market capitalization, Leading state-owned commercial banks Vietnam Q3 2021, by total assets, Leading state-owned commercial banks Vietnam Q3 2022, by market capitalization, Quarterly number of domestic transactions via internet banking Vietnam 2020-Q1 2022, Quarterly value of domestic transactions via internet Vietnam 2020-Q1 2022, Quarterly number of domestic transactions via mobile banking Vietnam 2020-Q1 2022, Quarterly value of domestic transactions via mobile banking Vietnam 2020-Q1 2022, Share of consumers taking out loans in the past 12 months in Vietnam 2022, Considerations for bank account opening Vietnam 2022, Change in intention to use and carry cash among Vietnamese 2021, Awareness and interest in digital banking services among Vietnamese 2021, Digital banking services usage during COVID and future usage intention Vietnam 2021, Consumer preferences for digital versus traditional banks Vietnam 2021, International reserves value in Russia 2013-2022, Share of gold in foreign exchange reserves in the CEE region 2022, UK Banking: IMF reserve position of the United Kingdom (UK) 2016-2020, Total amounts outstanding of UK gold reserves 2014-2022, International reserves value in Russia 2012-2022, by type, Agnico-Eagle Mines' gold reserves 2000-2022, Total reserves in Vietnam from 2011 to 2021 (in billion U.S. dollars), Find your information in our database containing over 20,000 reports.

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