Vietnam Financial News

Advertisements

Random Post

• Guidelines for real estate trading floors
• Fifty seven Russian companies look for investment opportunities in Vietnam
• Vietnam FDI disbursements jump
• Prices forecasted to stabilize in June
• State Bank denies that 1000 tons of gold is kept among people
• Vietnam Reserves Slump by 35%

Vietnam Financial News

Vietnam Business » Vietnam Financial News » Business demand for foreign currency rises

Business demand for foreign currency rises

Local enterprises are borrowing more foreign currency instead of Vietnamese dong because of lower bank interest rates. The interest rate per annum for the US dollar is 5-7 per cent, and for VND, 13.5-15 per cent.

"The risk in exchange rate fluctuation is exceptionally small, and experts believe that for the next six months, the exchange rate will be stable. As a result, foreign currency loans at banks are growing," said Nguyen Hoang Minh, vice director of the State Bank of Viet Nam (SBV) s HCM City office.

For the first five months of the year, the number of Vietcombanks foreign currency loans rose 8 per cent while VND loans were at a standstill.

In the inter-banking market during the final week of May, the interest rate for foreign currency rose only slightly for one-week and six-month loans.

But then it experienced a sharp rise for three-month loans, from 1.11 per cent to 2.23 per cent per year.

For the last two months, the exchange rate has remained stable and prices on the black market were lower than in the inter-banking market. This has helped banks to easily attract supply.

The latest SBV report confirmed that the foreign currency market was stable, and that the situation would reduce speculation.

Trustworthy

A recent survey on the Trade Trust Index done by banking giant HSBC found that small - and medium-sized import-export enterprises of the United Arab of Emirates, India and Viet Nam were the most optimistic about trade relations for the next six months.

Only half of the business community, compared to 81 per cent in 2009, believed that the exchange rate of foreign currency would negatively affect their operations.

In addition, more import-export companies (28 per cent) believed that State policies would help them develop, compared to 9 per cent in 2009.

"The results of the survey reflect changes in the market for the last six months as well as the future for the next six months. More and more businesses believe in a global economic recovery," said Do Thuy Nhu Thuy, a senior official at HSBC Viet Nam.

However, bank leaders also warned that enterprises should take out insurance on exchange rates.

Vietnam Business And Financial News Network. Source [english.vietnamnet.vn]

More Vietnam Financial News:

• Businesses need more foreign currency
• Deposit interest rate nears 12 percent
• Businesses seeking capital by issuing corporate bonds
• SBV Will Inspect Banks With Overly High Interest Rates
• Vietnam to Receive More Overseas Remittance This Year
• Japan Asia, Vietnamese partners set up two funds
• Vietnam to auction VND 2 trillion bonds
• Public Debts May Jump On Multi Bln USDollar Projects
• Vietnam to Raise Banks Capital Adequacy Ratio to 9% from Oct.1
• Money Flows to Allow Banks to Slash Rate

Popular Vietnam Business News

Vietcombank H1 Pretax Profit of VND2,450B Meets 75 per cent of Year's Target

The Joint Stock Bank for Foreign Trade of Vietnam (VCB) made pretax profit of VND2,450 billion in the first half this year, fulfilling 75 per cent of its yearly target,

Bank For Agricultural Of Ho Chi Minh City

These are some of the leading stories in the official Vietnamese press on Tuesday. Reuters has not verified these stories. -- Partly private Dong A Bank said it made a

PetroVietnam Asked to Rebuild Financial Plan for Dung Quat Refinery

The US$3.1-billion refinery has to date produced gasoline A92, kerosene, diesel oil, and liquefied petroleum gas (LPG) for the market. The plant had sold a total of 5,630 tons of

Sheraton set for Nha Trang market entry

The Sheraton Nha Trang, located in the central coastal city of Khanh Hoa Province, will host its soft opening on March 19 to welcome both business and leisure travellers. The

Dana - Italy Steel JSC applies for listing shares on northern bourse

Hanoi Stock Exchange (HNX) announced to receive application profile for listing 15 million shares of Dana - Italy Steel Joint Stock Co on March 19, 2010. The company with chartered

Low-income Apartment Segment Attracts Investors

While the apartment block segment has not yet seen recovery; low-cost houses are attracting speculators attention, which has helped to form a sudden price hike in realty in the west

Vietnam garment exports set to rise as industry holds line on prices

Viet Nams garment industry has a worldwide reputation for making competitively priced and high quality garments, a survey conducted by the US-based non-profit group Kearny Alliance has found.

Vienam eeal estate developers race to build skyscrapers

Thirty-seven, sixty-eight, seventy, even 102 storeys - in Hanoi and Ho Chi Minh City, bigger and bigger buildings are reshaping the skyline. Most skyscraper projects have been developed by heavyweights

Advertisement