brave-ledger-verification=c6e7ae9820dff1923729e2a580efb43dfca7423b9cad80885864c1acc8eb2a22

Tag Archive for ‘Depreciate’

Vietnam interest rates forecast to inch down in H2 of 2017

Average interest rates will decrease slightly in the second half of this year, market research firm Market Intello forecast. According to the firm, the continuous fall in inflation led the State Bank of Việt Nam (SBV) to decrease interest rates to stimulate credit activities, which led to a decrease in market interest rate. However, the […]

VND expected to see end-of-2017 dip

The Vietnam dong is expected to depreciate by two percentage points at the end of 2017, ending a period of stability that lasted throughout the year. Since the start of this year, the USD/VND exchange rate remained relatively stable, hovering around VND22,700 to the dollar. However, this period of calm is likely to end soon, […]

With exports to EU falling, Vietnamese textile makers are hurting

Export orders from European Union (EU) countries are on a downward trend that worried many local garment makers. In 2012, orders for exports to the EU of Luc Nam Garment Factory, under Bac Giang Garment Joint Stock Company, dropped by 10 per cent compared to 2011. Nguyen Van Thien, director of the factory, said that the company had been deprived of $300,000-400,000 due to the decline in export orders from the EU market. Vietnam’s garment export companies have longtime customers in the EU market, but they have all been hard hit by the economic crisis in the European region. This situation lasted from…

Vietnam Lower Interest Rates Not Devaluing Local Currency

Dollar and dong notes seen at a bank in Ho Chi Minh City. Experts say the dong will remain stable through the end of the year. The exchange rate between the Vietnamese dong and US dollar has remained stable despite large deposit interest rate cuts this year. Shrinking demand for foreign currency, prompted by the slowing economy, is expected to keep the exchange rate from rising through the last quarter of the year. The State Bank of Vietnam has reduced the interest rate cap imposed on dong deposits four times since the beginning of 2012. The rate has fallen from 14 percent…

QE3 can’t be ignored by Vietnam

Vietnamese American senior financier Bui Kien Thanh sheds some light on possible implications of the US’ recent quantitative easing stimulus programme (QE3) on Vietnam’s export business and the economy generally. The US Federal Reserve (FED) just launched QE3, under which each month the FED will pump $40 billion into the market, making efforts to ease unemployment, stimulate demands and resume production. What is your view about its overall impacts? QE3 is a monetary policy package introduced by FED paving the way for US firms to access lending with lowest possible interest rates to resume growth. From 2000 up to…

Vietnam ministry issues new corporate tax rules

The Ministry of Finance has issued a number of new corporate income tax regulations. Circular No 123/2012/TT-BTC, issued on July 27, guides the implementation of the Law on Corporate Income Tax and Decree No 124/2008/ND-CP of December 2008. Under the new circular, an enterprise facing changes to corporate tax incentives during a taxable period may (i) continue to apply existing incentives in the current year (less than 12 months), or (ii) apply the standard tax rate in the current year and enjoy new incentives in the subsequent tax year. In addition, income from the transfer…

SBV’s reputation in the market increases: IMF representative in Vietnam

The State Bank of Vietnam (SBV) has watched very closely the macroeconomic evolutions to give appropriate policy measures, resident representative of the International Monetary Fund (IMF) in Vietnam, Sanjay Kalra, said in an interview posted on the central bank’s website recently. Sanjay Kalra said the central bank’s monetary policy results in the first seven months of the year showed the central bank has watched very closely the evolutions of macroeconomy and on that basis making appropriate policy measures, resulting in the macroeconomic stability as IMF’s expectations. In Jan-Jul, the forex rate was very stable, inflation has…

Sri Lanka seeks another IMF bailout after record loan

A construction worker is seen on a partially built highway in Kottawa, in 2011. Sri Lanka has announced the completion of a $2.6 billion IMF bailout, but it is seeking fresh loans to support an economy emerging from decades of ethnic war. Photo: AFP Sri Lanka announced the completion of a $2.6 billion IMF bailout, but it was seeking fresh loans to support an economy emerging from decades of ethnic war. The International Monetary Fund on Friday released the final instalment of the bailout agreed in July 2009, two months after Colombo defeated Tamil rebels in a major offensive to end the…

The Next Dollar Undercurrent Wave

The foreign currency market has heated up again when credit institutions begin collecting dollars. The pressure on foreign currency reserves and dong/dollar exchange rate is believed to be harder in the time to come. Foreign banks collecting dollars According to the Governor of the State Bank of Vietnam Nguyen Van Binh, the central bank has […]

Villa and adjacent house prices in Hanoi depreciate in Q2/2012: CBRE Vietnam

Hanoi’s real estate market in the second quarter of 2012 saw an increase in new apartment supply, however prices of villas and adjacent houses have depreciated and market liquidity remained low, CBRE Vietnam said in its report at the press conference on Hanoi’s real estate market in Q2/2012 recently. The market may not recover in the short term CBRE Vietnam representatives said that the State Bank of Vietnam (SBV)’s policy to lower the dong deposit interest rate cap to 9 percent per year will have a certain lateness to come into effect for the real estate market. Specifically, almost the loan applications…