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Good sign for Vietnam economy
Standard Chartered has released a report on Vietnam’s economy, saying that narrowing trade deficit and surge in FDI calm nerves over currency crisis.
This month’s report entitled “Vietnam – Immediate danger reduced, tough acts remain” was compiled by leading economists on Asia and Southeast Asia of the UK-based bank using latest data on trade balance, FDI and monetary policy.
Market sentiment on Vietnam has calmed considerably in recent weeks, as seen by the decline in USD-VND non-deliverable forward (NDF) as well as gradual return of foreign interest in the fixed income market, the bank’s economists said. This was brought by a combination of narrowing trade deficit as well as a sudden surge in pledged FDI of estimated 44 billion USD in the first seven months of this year, they added.
Standard Chartered said Vietnam’s export performance thus far this year has been robust despite concerns over global economic uncertainty. Strong contracted FDI indicate confidence from foreign business investors over the country’s prospects as a manufacturing hub as well as a resource centre for the region.
The report also said that data yet to show economic impact from light monetary policy, and the State Bank of Vietnam (SBV) may need to tighten again to retain capital onshore.
Standard Chartered now has a system of more than 1,750 branches and outlets located in over 70 countries and territories. The bank generates more than 90 percent of its profits from Asia, Africa and the Middle East . In Vietnam , it has offices and branches in Hanoi and Ho Chi Minh City and is planning to open as many as between 20 and 30 new branches over the next three to four years.
VNA
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