High forex pressure was felt in Vietnam in 2022 due to interest rate hikes by major central banks in the world, and the year 2023 saw much easing owing to ample forex supply. What forex changes can be expected in 2024, and where do challenges if any come from? Ample forex supply in 2023 As much as US$9 billion in incoming remittances was recorded in HCMC in 2023, a surge of 35% over 2022, according to the HCMC branch of the State Bank of Vietnam (SBV). This amount, however, was sent home via banks and authorized entities only, excluding the volume transferred via informal channels. The amount of incoming remittance in HCMC often accounted for half of the total remitted to the country in previous years. The World Bank estimates remittances from abroad to Vietnam may amount to US$14-15 billion this year. Incoming remittances can be seen as a typical example of ample foreign supply in Vietnam in 2023, besides other sources from trade and inbound investment. Data from the Ministry of Industry and Trade put Vietnam’s 2023 foreign trade at US$683 billion, comprising US$354.5 billion of export earnings and US$328.5 billion of import expenditures. As such, the trade surplus […]
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