Vietnam BoP Deficit Estimated at $2.5B in 2010, Govt Economist Says
Vietnam’s overall balance of payments (BoP) is estimate to have a deficit of between $2 billion and $2.5 billion this year, compared to last year’s gap of $8.8 billion, said Le Xuan Nghia, vice chairman of the National Committee for Financial Supervision.
The BoP is expected to see a lower deficit at $1 billion or even balanced next year given a 10% rise in the country’s exports, Nghia said on the sidelines of the conference held by Vietstock Media in HCM City on Dec 18.
Nghia predicted pressures on the dollar exchange rate to cool down in the first quarter of 2011, noting that difference between nominal and real forex rate in 2010 has hindered disbursement of foreign investment.
The difference has also proved that the local economy is really in shortage supply of foreign currencies, the vice chairman added.
He called for tighter monetary policy to stabilize real forex rate and narrow the difference next year, instead of further devaluation of the local currency.
“The gap between dong and dollar interest rates could be adjusted. It is not necessary to raise interest rates, but the gap should firstly be widened. Dong interest rates could even be lowered, provided that it is done to dong’s advantage.”
U.S. dollar yesterday traded at around VND21,180 on Vietnam’s free market. Vietcombank, meanwhile, offered to buy dollar at VND19,495 and sell at VND19,500. (Vietstock)
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