China’s yuan depreciation likely to harm Vietnamese firms: experts

Hanoi (VNA) – Vietnamese enterprises, especially those having trade links with Chinese counterparts, will suffer from the negative impacts of China’s move to devalue its yuan currency, said experts.

According to Nguyen Xuan Duong, Chairman of the board of directors of Hung Yen Textile JSC, China’s yuan exchange rate weakened 294 basis points on May 30 to 6.58 against the US dollar – the lowest level over the last five years will definitely bring harmful effects to Vietnamese firms, especially export enterprises.

The situation will lower Vietnamese exports’ competitiveness, especially those sharing export markets with China, he stressed, adding that this will cause Vietnam to lose some export markets.

Nghiem Xuan Da, General Director of the Vietnam Steel Corporation, said the yuan depreciation against the US dollar will facilitate China’s steel export.

Sharing Da’s opinion, Chairman of the Vietnam Steel Association Ho Nghia Dung suggested Vietnamese steel firms outline long-term measures and strategies to boost competitiveness, towards dealing with the situation effectively.

However, representatives from travel agencies said that China’s yuan devaluation has little impact on their activities.-VNA