Capital flows may leave Vietnam when the State Bank's 'magic wand' stops working
Speaking at the conference "Southern real estate embracing infrastructure development opportunities" organized by CafeLand, Dr. Nguyen Tri Hieu said that Vietnamese real estate has not yet seen "the light at the end of the tunnel".
Vietnam’s Q4 economic growth may improve better than expected: HSBC
HCMC – Vietnam’s economy is projected to perform better than expected in the final quarter of the year if the State Bank of Vietnam (SBV) continues to provide monetary policy support, according to a recent report by HSBC Vietnam. The report has revised the economic growth forecast for Q4 by 0.1%,
The efficiency of the policy rate cuts
The recent moves by the State Bank of Vietnam (SBV) to cut policy interest rates are expected to give a much-needed boost to the economy and enterprises. However, some are of the view that these moves have limited impact under the current circumstances. Drastic interest rate cuts Less than two
Bright outlook amid monetary easing
Monetary policy is gradually shifting from tightening to easing again. Following the two interest rate cuts in late March, the central bank has signaled another rate reduction is coming. Money goes around flexibly Contrary to former concerns, the stock market was undergoing fairly positive
Navigating monetary policy amid economic turmoil
Exercising prudence in navigating monetary policy has become more critical than ever as recession risks, escalating inflation, slow global trade growth and a banking crisis in the U.S. are biting into the global economy. Inflation risk looms large The macroeconomic outlook in 2022 and early 2023
Multi-target monetary policy and interest rate reduction requirements of the SBV
Bank interest rates are gradually decreasing but are considered too slow compared to the recovery requirements of the economy. The evidence is that the number of businesses temporarily suspending operations in the first four months of the year continued to increase sharply, and imports and export
The May fear factor
Data in the past showed that the market performance in May was not always the worst. In recent years, the “selloff in May” phenomenon seems no longer a significant concern. So, is the fear of May exaggerated? The past was not too bad After a rise of 3.7% in March, the VN-Index reversed course and
Limited monetary policy options
As monetary policy tools are nearly exhausted, fiscal policy needs expanding to spur growth as more challenges are on the horizon. Boosting public investment in infrastructure development and funding the economic recovery and development program are seen as key priorities in 2023. Narrower
Is it time to increase credit growth cap?
Though the central bank has shown no sign of revising the credit growth target of 14% for 2022, there is still room for increasing it amidst a soaring thirst for capital induced by a bond market crash. Why is credit expansion necessary? As a credit crunch can make the country’s post-pandemic
The situation is now different
The State Bank of Vietnam’s (SBV) recent decisions to hike key interest rates, widen the trading band of the Vietnamese dong, and actively engage in open market operations have significantly contributed to ensuring macroeconomic stability and easing inflationary pressure The effectiveness of
A forex policy that can work
It is probably high time for Vietnam to embrace a more flexible forex policy, possibly a measured floating scheme similar to the approach taken by regional countries in the aftermath of the 1997-1998 financial crisis. Current forex policy In the past, reality in Vietnam showed that the currency