The Vietnamese economy is walking a careful tightrope amid rapid developments around the world, especially the spiraling US-China trade war and the US Federal Reserve’s rate hikes, which are weighing on exchange rates and Viet Nam’s trade balance.
Global uncertainties, such as the impacts of the Fed’s rate hikes and the spiralling US-China trade war, have triggered questions about whether the lending interest rate in Vietnamese dong will increase and in what direction foreign exchange rates will move.
As worries grow about additional US rate hikes, investors may now turn to the earnings season in which they hope to find something extraordinary to drive overall sentiment up.
The central bank must push up banking restructuring and settlement of bad debt to ease pressure on rate hikes and keep rates stable this year, experts agreed at an online meeting yesterday on 2017 interest rate trends.