Vietnam Net Bridge, 21 August 2015. Material importers feel pinch of dong devaluation.
An edited extract of the original article appears below.
The central bank’s devaluation of the Vietnam dong currency by another 1% against the U.S. dollar and its widening of the dong/dollar trading band to 3% on August 19 will deliver a blow to material importers.
Commodity prices inch up
Since the State Bank of Vietnam (SBV) widened the dong trading band on August 12, auto assemblers and importers have not made any specific price moves. Truong Hai Auto (Thaco), Toyota Vietnam and Euro Auto (BMW) said they had not revised up selling prices over the past week.
Nevertheless, a source told the Daily it was likely that automakers would adjust car prices in the coming days after the SBV devalued the dong on the inter-bank market by 1% and increased the trading band from 2% to 3% on either side…
According to the source, auto prices might edge up 2-3% as the Vietnam dong weakened by 2.54% against the U.S. dollar and 2.7% against the euro…
Regarding fruit imports, an importer based in HCMC said the new exchange rate had yet to affect import prices as his company was still getting fruits as part of their previous orders. However, with new orders in the next 10-15 days, import prices will likely pick up 5-10% if they are calculated in the local currency.
Meanwhile, Luu Son Thuy, a board member of Ket Phat Thinh Co. in Long An Province, said the company has suspended beef imports from Australia due to the strengthening U.S. dollar and higher import prices of Australian cows.
“We initially planned to resume beef imports from Australia at the end of the seventh month and early in the eighth month of the lunar calendar. But we are now undecided due to exchange rate volatility,” Thuy said…
- To view the original and unedited article, click onto Material importers feel pinch of dong devaluation.
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