Vietnamese dong expected to average stronger in 2020: Fitch
Vietnam’s central bank is expected to pursue a stronger dong, especially as this might weigh on the recovery of the country’s export-oriented manufacturing sector over the coming months.
Vietnam’s central bank is expected to pursue a stronger dong, especially as this might weigh on the recovery of the country’s export-oriented manufacturing sector over the coming months.
HSBC has raised its 2020 growth forecast for Vietnam to 3.0% from 1.6% previously, reflecting its renewed assumptions of Vietnam’s speedier economic rebound.
Vietnamese economy’s resilience, the government’s capable handling of the pandemic, and it being a beneficiary of supply chain relocation could help the country rebound quicker versus the region.
The Vietnam Manufacturing Purchasing Managers' Index (PMI) posted 51.1 in June, up from 42.7 in May and above the 50.0 no-change mark for the first time in five months.
The number of newly established enterprises in Vietnam in the first six months of 2020, however, fell 7.3% year-on-year to 62,000.
Investors have poured money into 18 fields and sectors, in which manufacturing and processing led the pack with over US$8 billion, accounting for 51.1% of the registered tally.
Nearly half of the number should be able to take part in the supply chain of multinationals in Vietnam.
Record falls were seen in output, new orders, employment and purchasing amid company shutdowns and the cancellation of orders.
The low industrial output growth rate revealed difficulties faced by companies in the sector, especially those in manufacturing and processing.
Vietnam has attracted the majority of those who wanted to diversify their manufacturing portfolio beyond China.