Sign up | Log in



Home  >>   Daily News  >>   Vietnam  News  >>   Economy  >>   Vietnam devalues currency
NEWS UPDATES Asean Affairs       12  February 2011

Vietnam devalues currency

Related Stories

January 15, 2011
Vietnamese banks hike interest rates on US dollars

December  28, 2010
Vietnam takes steps to halt inflation

December 21, 2010
Vietnamese inflation, forex stabilise in 2011

December 3, 2010
Foreign firms eager to invest in Vietnam

December 1, 2010
Increasing Vietnamese competitiveness  

November 27, 2010
Prices soar in Vietnam

November  26, 2010
 Restructuring Vietnam state enterprises

Vietnam devalued its currency to 9.3 dong against the US dollar on Friday for the third time in a year to address economic problems including double-digit inflation.

The move increased concern among Thai rice exporters that their prices would become even less competitive against the lower prices quoted by Vietnam, the world's second largest rice exporter. The State Bank of Vietnam cut the dong's reference rate by 8.5 percent against the US dollar and narrowed the currency's daily trading band to 1 percent from 3 percent on either side of the reference rate.

The combined effect pulled the weak limit of the band down about 7 percent to 20,900 per dollar from 19,500, and brought official and black-market exchange rates closer to alignment. Vietnamese 5 percent white rice on Thursday was quoted at US$440 a tonne while the same grade of Thai rice was $520.Vietnam's rice exports last year totaled almost 7 million tonnes, against 9 million tonnes exported by Thailand.

Thai Commerce Minister Porntiva Nakasai said a weaker dong could also affect the competitiveness of other Thai goods including seafood, textile and wooden products in which Vietnam was a rival. However, the Visit Limprana, vice-chairman of the Federation of Thai Industries (FTI), said the impact on Thailand's farm sector would be limited because Vietnamese counterparts faced high cost pressures.

"It might be true that Vietnam's exports will gain about 7 percent in terms of dong received, but its high inflation has also pushed up costs in many areas and these will balance the gains," he said.

The dong, unlike nearly all other Asian currencies, has been weakening against the dollar. Confidence in the currency is low in Vietnam, where dollars and gold are widely used for major purchases.

Friday's devaluation was the sixth - and the biggest - in nearly three years. Economists applauded the move but said the central bank now needed to target double-digit inflation, which the devaluation could exacerbate.

The new reference rate is 20,693 dong per dollar, down from 18,932 in place since mid-August 2010.

Since June 2008 the dong reference rate has been devalued by more than 20 percent.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    12  February 2011 Subsribe Now !
• Cambodian banking sector develops
Subcribe: Asean Affairs Global Magazine
• Export curbs in Indonesia? Asean Affairs Premium
• A slippery slope in Indonesia
• Proton looking for a tenant  
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Philippines economic index rises
• Thai bank warns of AEC competition
• Foreign retailers avoid Vietnam
• Vietnam devalues currency
Asean Analysis    12   February 2011 Advertise Your Brand
• WEEKLY SUMMARY Sponsor Our Events
Asean Stock Watch    11  February 2011
• ASEAN Markets Under Pressure
Global News Impacting Asia    17 November 2010
• Bank of America sees Asian inflation
• Lloyd’s increases insurance push in Malaysia
• Wells Fargo analyst on euro
• Obama’s visit to Asia

ASEAN NEWS UPDATES      Updated: 04 January 2011

• Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand