Vietnam raises foreign reserves to $68 billion

24-Jul-2019 Intellasia | The Saigon Times | 6:02 AM Print This Post

Vietnam’s foreign reserves hit a record high of $68 billion at the end of June, chiefly built upon the country’s robust foreign direct investment (FDI) inflows, Thanh Nien Online website reported.

Quoting experts at a seminar held by the Banking University of HCM City today, July 22, Thanh Nien said that the current foreign reserves were equivalent to 13.4 weeks of imports. Despite strong purchase of the greenback, there are no pressures on inflation, while money supplies and credit remained under control.

The ongoing trade tensions between the United States and China have escalated, marked by unpredictable developments and causing huge impacts on economic activities worldwide. In Vietnam, the export growth rate slowed to 7.3 percent in the first half of 2019, much lower than the 17.8 percent over the same period last year.

As a result, the nation again reported a trade deficit of $37 million during the period, after posting a surplus of $4.12 billion one year ago.

According to experts, the problem suggested that the local economy was still heavily dependent on the foreign sector. Over the past years, FDI enterprises have accounted for up to 70 percent of total export revenues.

Between January and June this year, the domestic sector reported an export growth rate of 10.8 percent, failing to offset the modest growth rate of only 5.9 percent posted by the FDI sector. For years, the trade surplus in the FDI sector had made significant contributions to balancing the nation’s trade deficit.$68 billion.html


Category: Finance, Vietnam

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