While Vietnam has largely contained its domestic outbreak and eased restrictions for business travel, which should allow investors back in to the country, a lack of flights scheduled and also likely increased red-tape for business outbound travel approvals from the perspective of investors residing in foreign countries will continue to hamper FDI inflow to Vietnam. However, tariff risks appear low, as the US will likely continue to reduce its dependence on Chinese exports by reorganizing its supply chain with other partners, such as Vietnam. In January 2015 the State Bank of Vietnam devalued the dong to help Vietnamese exporters who rely on a competitive currency, reports Bloomberg. In the first 11 months of this year dragonfruit exports fell by 10 per cent because of the COVID-19 pandemic but still dominated Vietnamese fruit exports with shipments of more than US$1 billion. Fitch Solutions, a subsidiary of Fitch Group, expected the Vietnamese dong (VND) to weaken slightly over the coming quarters and to average VND23,475/USD in 2020 due mainly to weaker foreign direct investment (FDI) inflows and a likely preference by the central bank for a weaker dong to support the exports sector. Minister of Agriculture and Rural Development Nguyen Xuan Cuong talks about measures to promote modern agricultural development. The USDVND increased 1.0000 or 0.00% to 23,065.0000 on Friday January 15 from 23,064.0000 in the previous trading session. The foreign exchange rate of the Vietnamese dong against the US dollar is forecast to be under greater pressure in 2020 Finance expert Nguyen Tri Hieu said that pressure on the exchange rate would be bigger this year as a greenback supply decline in the domestic market is forecast, driven by weaker foreign direct investment (FDI) inflows and exports. Guide on how to purchase BVND can be found here . Realized FDI for the first six months of 2020 was US$8.65 billion, 5% less than what was disbursed over the same period in 2019, and Fitch Solutions attributed the resilience so far to investments which have completed their due diligence up to the first quarter when borders were generally still open. You are here: Home / Vietnamese Dong / Vietnamese Dong Revaluation. This suggest that food inflation is likely to remain elevated for some time. Weaker foreign direct investment inflow on the back of the Covid-19 pandemic and a likely preference by the central bank for a weaker Vietnamese dong to support export competitiveness would be key drivers of dong weakness over the near term. Vietnamese Dong Exchange Rate Forecast Sunday, 17 January 2021. Vietnam’s development outlook is set to be formulated over the next few weeks when the 13th National Party Congress takes place in Hanoi. The disbursement of public investment was estimated at VND398 trillion as of the end of December, meeting 82.8 per cent of the Government’s plan – the highest rate in the 2016-20 period, according to the Ministry of Planning and Investment. African swine fever, which ravaged Vietnam in 2019, reduced the country’s hog herd by about a fifth and Fitch Solution expected pork production to only recover somewhat closer to 2023. The year 2020 witnessed many ups and downs of the car market. On the other hand, given that exports account for more than 100% of GDP in 2019, it is unlikely that the SBV will pursue a stronger dong, especially as this might weigh on the recovery of the country’s export-oriented manufacturing sector over the coming months hit by Covid-19. One key reason was Vietnam’s border closures in the second quarter due to Covid-19 having prevented investors from conducting site visits in Vietnam, which Fitch Solutions expected to impact FDI flow during the second half of this year. Although foreign direct investment (FDI) in 2020 is likely to be weaker than 2019 due to Covid-19, Fitch Solutions expected the Vietnamese central bank to continue intervening to maintain the dong (VND) stability over the coming quarters and have revised its forecast for the VND to average VND23,250/USD in 2020, from VND23,475/USD previously. Recently it also added the Vietnamese Dong for P2P trading. The total newly granted and adjusted FDI capital was $1.27 billion, reaching 115 percent of the set target in the year. You will also be provided a Certificate of Authenticity. Meanwhile, the VND has remained flat against the US dollar since July and has averaged VND23,255/USD so far this year. © Copyright 2004; Hanoitimes - Economic and Urban Newspaper; The tribune of Hanoi People’s Committee, VND more resilient compared to regional peers amid Covid-19: VinaCapital, Vietnam’s strong foreign currency supply helps stabilize USD/VND exchange rate: Expert, Vietnam c.bank predicted to keep VND stable amid CNY devaluation, Vietnam economy to enjoy a rosy 2021: HSBC, Vietnam stock market watchdog addresses overload issue, Central Bank steps up efforts to address US tag of currency manipulation, Vietnam budget deficit forecast at 3.6% of GDP in 2021, Vietnam Central Bank targets credit growth at 12% in 2021, Early positive signs for Vietnam stock market in 2021, Financial sector urged to raise 2021 budget collection, Vietnam credit growth set to return to pre-Covid-19 level in 2021. Investing in Vietnam, Engaging the world. 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