Vietnam Raises Reference Exchange Rate Amid Economic Growth and External Relations Focus

The State Bank of Vietnam (SBV) set the daily reference exchange rate at VND25,632 per USD on September 17, an increase of VND6 from the previous day. With the current trading band of +/- 5%, the ceiling rate applicable for commercial banks during the day is VND26,919/USD, and the floor rate is VND24,355/USD. This adjustment occurs within the broader context of Vietnam's robust economic growth and its strategic efforts to strengthen international relations. Vietnam views the utilization of Free Trade Agreements (FTAs) as a means to meet stricter export market requirements concerning quality, technical standards, environmental protection, and sustainability, beyond mere tariff preferences. Improving product quality and adhering to green requirements and sustainable development criteria are deemed essential. Infrastructure development is also advancing to support economic growth. Notably, on Phu Quoc Island, the DT975 corridor connecting the airport with the APEC Convention Centre is being developed as a key component of the island's future transport network. This signifies Vietnam's intention to offer investors a more integrated production ecosystem, thereby promoting investment in high-value, technology-intensive, long-term projects. Vietnam is also actively attracting Foreign Direct Investment (FDI), seeking partnerships based on co-creation with U.S. businesses, not just capital inflow. This reflects the nation's approach, under its one-party system, to prioritize economic growth while strategically building cooperative relationships with the international community. Furthermore, Vietnam considers economic, trade, and investment cooperation as a crucial pillar in its bilateral relations, including with China. This suggests Vietnam's pursuit of balanced diplomacy in a geopolitically complex region, while striving for economic independence. In the aviation sector, Vietnamese airlines are enhancing their international standing, with some ranking highly in Skytrax international airline awards. This exemplifies the improvement of Vietnam's service industry's global competitiveness. Vietnam's economic growth is driven by processing and manufacturing, particularly in electronics, machinery, and equipment, which underpins export growth. In addition to coffee, packaged foods, beverages, and fruits are also considered competitive in international markets, with the establishment of large-scale import chains expected to lay the foundation for long-term commercial cooperation. Source: VietnamPlus English