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This is as per media reports, which added this upward trend has pushed the dollar beyond the VND 25,000 mark in some banks, pushing regulatory limits.
Addressing this swift ascent, deputy governor Dao Minh Tu of the State Bank of Vietnam (SVB) reassured during a recent press conference stating: “With a war chest of over $100 billion in foreign exchange reserves, we are poised to stabilise the exchange rate as needed.”
However, this turbulence is affecting equity markets, particularly businesses with import operations or USD-denominated obligations even as the BSC Securities noted the mixed impact, favouring exporters while burdening import-reliant firms.
In the textile industry, although reliant on US markets, operational performance remains somewhat stable due to the balanced cost implications while steel producers face challenges due to import-heavy inputs even as firms like HSG and NKG may benefit from diversified exports, reports underlined.
Meanwhile, PetroVietnam – PetroVietnam is the trading name of the Vietnam Oil and Gas Group – with a foreign currency debt of $1.55 billion, exemplified the broad impact of currency fluctuations across sectors, as highlighted by chairman Le Manh Hung.
Fibre2Fashion News Desk (DR)