Business

No sudden impacts on Vietnam from FED rate hike

The Vietnamese monetary market will not suffer from any significant impact from the US Federal Reserve (FED)’s fourth interest rate hike in 2018 as the move was already expected, experts have said.
No sudden impacts on Vietnam from FED rate hike ảnh 1FED rate hike will not impact Vietnamese monetary market much. (Photo: nld.com.vn)

Hanoi (VNA) – The Vietnamese monetary market will not suffer fromany significant impact from the US Federal Reserve (FED)’s fourth interest ratehike in 2018 as the move was already expected, experts have said.

On December 19, FED lifted the benchmark lending rate by 0.25 percentage pointto a rage of 2.25-2.5 percent per year.

Althoughglobal stocks have tumbled following FED’s move, the benchmark VN-Index on theHo Chi Minh Stock Exchange extended its growth at the beginning of the sessionon December 20. However, selling pressure of large-cap shares resulted in afall in their prices, making VN-Index dip in red margin. Also, the foreignplayers net bought 280 billion VND (12 million USD) on the bourse, helping theVN-Index experience only a slight decrease of 0.11 percent to 918.24 points.

In stark contrast, the HNX-Index on the northern bourse rose 0.35 percent toclose at 104.53 points on the day.

According to Ngo Dang Khoa, head of Global Markets at HSBC Bank Vietnam, asFED’s decision came at the expectation of the market, it does not have criticalinfluence on Vietnam’s fiscal and monetary market.

“In 2019, the US dollar is forecast to grow stronger than the Vietnamese dong,which means the pressure on the dollar-dong exchange rate will be mounting.With current flexible monetary policy, the State Bank of Vietnam (SBV) shouldput in places rational measures to harmonise economic growth and marco-economicstabilisation”, Khoa said.

Meanwhile, experts from the Bao Viet Securities (BVSC) said that the Vietnamesedong is among the currencies that have stiff resistance against FED’s lendingrate increases, and Vietnam is the only country in the Southeast Asia that hasnot taken its cue from the FED.

The SBV protects value of the Vietnamese dong by reducing liquidity of thebanking system, and the bank will maintain its strict liquidity management to counterFED’s lending rate gains in 2019.

However, an official of a commercial bank in Ho Chi Minh City said that FED’smove will have certain impacts on VND/USD exchange rate especially in thecontext of big fluctuations of Chinese yuan and that payments are reaching peakin the end of the year. Thus, enterprises need to carry out effectiveexchange rate risk preventive tools.-VNA
VNA
#Vietnamese monetary market #No sudden impacts #US Federal Reserve (FED) #fourth interest rate hike #benchmark VN-Index #selling pressure #Ngo Dang Khoa #State Bank of Vietnam #strict liquidity management #Vietnam News Agency #Vietnamplus
Follow VietnamPlus

Related News

See more

VCCI Chairman Ho Sy Hung speaks at the Vietnam Corporate Sustainability Forum (VCSF) 2026 in Hanoi on October 5, 2026. (Photo: VNA)

Vietnam’s corporate sustainability forum calls for new growth paradigm

Breakthrough growth and sustainable development should be pursued as a shared journey in which the State creates an enabling environment, localities support businesses, enterprises take the pioneering role, science and technology provide momentum, and society as a whole participates.

Khanh Hoa province is rolling out infrastructure projects for the Van Phong Economic Zone. (Photo: VNA)

Khanh Hoa targets green, smart marine economy

The province aims for average annual GRDP growth of 11-12% during 2026-2030, with the digital economy accounting for 35% of GRDP and total factor productivity contributing more than 55% to growth. Labour productivity is expected to rise by an average of 11% annually.

Comb honey produced using Le Loc Quan’s interlocking-frame technique is well regarded for its quality and popular in the Korean market (Photo: VNA)

Scientific initiatives add value to Vietnamese farm produce

In 2026, the Vietnam Farmers’ Union (VFU) Central Committee honoured 42 “Scientists for Farmers” and presented 24 “Farmers’ technical innovation” awards for initiatives developed from practical production needs. The recognised works demonstrate the growing role of science and technology in improving production efficiency, increasing the value of farm produce and helping farmers access new markets.

Shoe sole production at Kepai Co., Ltd. (a Japanese-invested enterprise) in Tan Kim Industrial Park (Tay Ninh) (Photo: VNA)

Tay Ninh expands industrial space to attract investment

To date, Tay Ninh has 3,234 domestic investment projects with total registered capital of nearly 800 trillion VND and 2,152 FDI projects with total registered capital exceeding 27 billion USD, ranking seventh nationwide in FDI attraction.

The Thu Thiem peninsula, an area positioned as the core of Vietnam's international financial centre. (Photo: VNA)

Vietnam revises scheme to improve sovereign credit rating by 2030

Under the decision, Vietnam aims to become a developing country with modern industry and upper-middle income by 2030, while building a competitive and effective governance system and a dynamic economy driven by science, technology, innovation and digital transformation.

Rooftop solar power system at Kizuna JV Joint Stock Company in Tan Kim Industrial Park (Can Giuoc commune, Tay Ninh). (Photo: VNA)

Rooftop solar power development falls short of target: deputy minister

Deputy Minister of Industry and Trade Truong Thanh Hoai noted that rooftop solar power has several advantages, including short construction time, limited land requirements and reduced transmission losses. The Government has therefore promoted its development amid rapidly rising electricity demand, projected to increase by around 10% annually.

Intensive shrimp farming zone of Vietnam Clean Seafood JS Company. (Photo: VNA)

Agriculture, forestry, fishery sector continues to underpin economy

The performance reflected relatively broad-based growth, with fisheries, livestock farming and perennial crops emerging as key drivers. These areas helped the sector continue to underpin the economy, safeguard food security and contribute to exports, Dau Ngoc Hung, head of the NSO’s agriculture, forestry and fishery statistics division, said at a press conference in Hanoi on October 3.

Shoppers at the Vietnamese goods section of Co.opmart Ly Thuong Kiet supermarket in Ho Chi Minh City. (Photo: VNA)

Vietnam’s CPI rises 4.52% in first nine months of 2026

Speaking at a press conference in Hanoi on October 3, NSO Director Nguyen Thi Huong said the CPI in September rose 0.62% from the previous month, mainly due to higher domestic fuel prices following global energy price movements and tuition fee increases at some universities and private schools for the new academic year.

DEEP C Hai Phong Industrial Park is envisioned as a model of an eco-industrial park and sustainable development in Vietnam. (Photo published by VNA)

Hai Phong works to expand cooperation space, anticipate green investment

In line with the Politburo's Resolution No. 10-NQ/TW on boosting the foreign-invested economic sector, the northern port city of Hai Phong is stepping up economic, trade, and investment connections with Chinese partners, creating new growth opportunities and enhancing foreign direct investment (FDI).

The Yaris Cross SUV led Toyota Vietnam’s sales in September 2026, with 1,799 units sold, including 413 hybrid vehicles. (Photo: VNA)

Toyota sales surge 45% in Vietnam, hybrids sales double

Toyota Vietnam sold 7,114 vehicles in September, up 45% month-on-month, while hybrid sales doubled year-on-year in the first nine months of 2026, showing growing demand for hybrid vehicles as Vietnam’s auto market moves towards greater fuel efficiency and lower emissions.

A view of Bien Hoa 2 Industrial Park in Dong Nai city. (Photo: VNA)

Vietnam sees 149,700 new businesses in nine months

Vietnam recorded nearly 149,700 newly established enterprises in the first nine months of 2026, up 3.2% year-on-year, with total registered capital rising 32.7% to over 1.88 quadrillion VND (71.6 billion USD).