HÀ NỘI — As the US dollar’s price continues to climb, Vietnamese businesses are feeling the pressure despite the State Bank of Vietnam’s (SBV) intervention in the exchange rate since April 19. Despite efforts, the USD/VNĐ rate reached VNĐ25,180 and VNĐ25,485 for buying and selling, respectively, at major banks such as VietinBank and BIDV. This surge marks the sixth consecutive session where the dollar’s selling price at banks has peaked, nearing the VNĐ26,000 threshold per dollar. Similarly, on the unofficial market, the buying and selling rates rose to VNĐ25,770 and VNĐ25,870, respectively. In response, the SBV sold US dollars at VNĐ25,450 each to banks with a deficit in foreign currency, which is VNĐ23 below the SBV’s upper limit. This strategy aims to stabilize the domestic exchange rate, which is still accelerating due to strong dollar valuations internationally.
The rising dollar has particularly impacted import-dependent businesses. A Hà Nội-based seafood import company reported significant extra costs due to the exchange rate, estimating an additional VNĐ100-150 million for every US$100,000 order. Nguyễn Đặng Hiến, General Director of Tân Quang Minh Company, noted that the beverage industry, too, is struggling. His company, which imports orange juice, certain flavors, and plastic beads, has seen production costs increase by 4-5%. Despite these higher costs, selling prices have remained stagnant due to low consumer demand. To mitigate these challenges, Tân Quang Minh Company is exploring domestic sources for raw materials and is looking to increase exports to dollar-paying markets.
Similarly, Nguyễn Văn Kết, Director of SKD Vietnam Mechanical Company, pointed out that while a 2-3% depreciation of the Vietnamese đồng was manageable, the actual 5% appreciation has compounded difficulties with high raw material and international transport costs. Experts advise that importing businesses should use risk prevention tools, scrutinize foreign currency loan agreements, and maximize local partnerships to reduce dependency on imports. They also recommend that businesses work with banks that offer robust trade support and consider using financial derivatives and swap contracts to manage risks associated with exchange rate fluctuations effectively.
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