The Finance Ministry and the Bank of Thailand have taken drastic measures to curb the impact from the US-China trade war, amid a slowdown in the economy.
The escalating trade tension between the US and China will cause considerable impact on Vietnam’s export, according to Pham Tat Thang, head of the Institute for Trade Research.
The USD/VND exchange rate has grown strongly at the heart of the global fight over economic dominance between the US and China, the world’s two largest economies.
Prices of gold, real estate and stocks would be pushed up by the US Fed’s decision to reduce interest rates, a move that tends to make the US dollar lose value against other foreign currencies.
Vietnam has become a favoured destination for merger and acquisition (M&A) deals for foreign investors, particularly those from the Republic of Korea (RoK), China’s Hong Kong, Singapore and Japan as the Asian multinationals see the benefits of having presence in one of the region’s fastest-growing economies.
Malaysian Finance Minister Lim Guan Eng said on July 22 that Malaysia will find it challenging to meet its 3 percent fiscal deficit target for next year due to uncertainties around the US-China trade war.
Vietnam gained a trade surplus of 1.59 billion USD in the first half of this year, according to the latest statistics from the General Department of Customs.
Experts have forecast that 'GDP may reach 6.82% for the whole year, with an estimated export turnover growth of 8.02%, a trade surplus of 0.8 billion USD and average inflation of 3.38%.
The Vietnam Institute for Economic and Policy Research (VEPR) has predicted Vietnam’s economic growth would accelerate in the third quarter and then reach 7.17 percent the last quarter to hit the Government’s target of 6.6 to 6.8 percent for the full year.
The Bank of Thailand is preparing measures to control short-term capital inflows, while continuing to relax restrictions on outflows to cope with the strong baht, according to minutes of a policy meeting last month.
Japanese-based Sumitomo Corporation has teamed up with logistics company Suzuyo and a Japanese public-private fund to take a 10 percent stake in Vietnam’s Gemadept SJC, which engages in the port operation and logistics business.
The paper industry has potential for growth, but businesses need to avoid investment in products that have excess supply, according to the Vietnam Paper and Pulp Association (VPPA).
According to Vietnam Textile and Garment Group (Vinatex), rules of origin under the EU-Vietnam Free Trade Agreement (EVFTA) seem more comfortable than those regulated in the CPTPP.
Vietnamese banks are seeking to raise capital in international bond markets as they face growing pressure to hike capital to satisfy the central bank's regulations on minimum capital requirements and Basel II standards by early next year.
In the second half of this year, increasing competition in product quality, prices and market share are predicted to force steel companies to work harder to maintain their foothold in the market.
The average Consumer Price Index (CPI) in the first half of 2019 increased 2.64 percent year-on-year, the lowest level over the last three years, according to the General Statistics Office (GSO).
Vietnam, with its highly open economy, is facing many risks from the US-China trade war which has not shown any sign of easing, experts said at a workshop in HCM City on June 25 on the impacts of the trade war.
World
XIII National Congress of Communist Party of Vietnam
