The Central Bank Of Vietnam Lowered Its Currency Exchange Rate By &Nbsp, Or Will Impact China'S Textile Exports.

Nowadays, when people talk about Vietnam, people always take delight in talking about its rapid development in recent years. Southeast Asian countries, no matter their territorial size or population size, have gained the reputation of "Asian tiger" in one fell swoop.

Vietnam shield depreciated 9.3%, 1 US dollars to 20693 Dong shield.

In February 11th, the Central Bank of Vietnam

Reporter: the Vietnamese shield began to depreciate greatly from 11. The Vietnamese central bank announced that the middle price of the Vietnamese currency exchange rate in the foreign exchange market was 1 US dollars against 20693 Dong Dong.

Previously, the central bank announced that the middle price of the Dong Dong's exchange rate against the US dollar was only 1 dollars to 18932 Dong Dong, and the Vietnamese shield's depreciation rate was 9.3%.

This is also a major adjustment of the exchange rate made by the Central Bank of Vietnam on the 11 day after the promulgation of the new foreign exchange paction rules.

In addition, the central bank also reduced the floating rate of the interbank collective foreign exchange market to the US dollar paction price from 3% to 1%. The Central Bank of Vietnam explained 11 days that the adjustment would promote market liquidity and improve Vietnam's ability to settle international accounts, which would help to encourage exports, reduce trade deficits and increase foreign exchange reserves.

Vietnam's domestic exchange rate adjustment is relatively calm, and there are no significant fluctuations in gold market and private exchange market.

According to reporters, Vietnam commercial bank announced the Vietnam shield.

As Vietnam's largest commodity exporter in 2010, Vietnam's commodity prices in the US market will be more competitive. As Vietnam's largest commodity importer, the selling price of Chinese goods in Vietnam will increase.

As Vietnam's textile and aquatic products export prices are further reduced, some countries are likely to impose more anti-dumping sanctions against Vietnam's export commodities, which will undoubtedly bring new troubles to the Vietnamese government.

Devaluation of Vietnam shield is no longer Asian

In view of the Asian financial crisis in 1997, the depreciation of the Thai baht triggered the chain reaction of other Asian currencies. It is understood that the International Monetary Fund and Citigroup have issued a report on the devaluation of the Dong shield, warning that the move could trigger a chain reaction in Asia.

Credit Suisse's report also shows that Vietnam and neighboring countries, such as Thailand and Malaysia, have similar economic structure.

The devaluation of the Dong shield will also blow up the currencies of other Asian countries while they are good for the country's exports.

However, Yuan Gangming, a researcher at Tsinghua University's China and world economic research center, interviewed Fang Liang, who was last night's editor in charge of the news, said that unlike the past, the depreciation of the Vietnam shield would not be the first Domino to fall.

Yuan Gangming: totally different. That was the impact of the international investment group and the serious trade deficit and the real estate bubble burst of some countries in Thailand and Malaysia. This is the problem of Vietnam's own macro-economy. Inflation is too high, inflation has reached 12%, and its growth has been able to increase, GDP growth has reached 7%, but the most serious is inflation.

The second reason is the trade deficit. The main reason for the trade deficit is also related to inflation and overheating. Vietnam's export growth is about 15% or 16%, but its imports have reached 25%.

He is now afraid of the loss of foreign exchange reserves caused by the trade deficit, so he uses this exchange rate depreciation to stabilize the domestic monetary situation, rather than adjusting his domestic macro economy, not as serious as the large-scale devaluation of the currency.

China's textile industry suffers

On the other hand, in the global division of labor, some countries represented by Vietnam have directly competed with China's middle and low end manufacturing industries. Now the Vietnamese shield has depreciated substantially, while the RMB against the US dollar has been rising for a long time. Will the competition situation faced by China's related industries suddenly deteriorate?

Take the textile industry as an example, according to a survey of 385 international buyers released last month by world-renowned media company global resources, China's textile exporters have already felt the pfer of orders, because 31% of respondents said they would increase purchases from Vietnam, one of the reasons is that Vietnam's price is 30% cheaper.

Regarding this, Sun Huaibin, deputy director of the China Textile Economic Research Center, believes that the pressure on the export of Vietnamese textile products to China's textile industry is mainly reflected in two aspects: first, orders for direct exports from China's fabrics and excipients may be reduced; two, in the wider global market, the competition pattern between China and Vietnam will also be affected.

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Sun Huaibin: it should be said that our export to ASEAN countries including Vietnam is an important export market. Especially after the start of the free trade zone, our exports to Vietnam and other Southeast Asian countries are increasing rapidly.

From the point of view of the structure of export products, fabrics and excipients are the main components, because these countries are developing clothing exports in large numbers, but countries such as Vietnam have incomplete industrial chains, so they need to import fabrics and accessories from China.

China is one of the main suppliers of fabrics and accessories needed by Vietnam. The devaluation of the Vietnamese shield will at least have two effects. First, the fabric and accessories exported to Vietnam will be weakened to a certain extent in the competitive advantage of export prices, because the price will be higher and higher, and Vietnam's demand for imported fabrics from China will be restrained.

Second, his exports, especially exports to the United States, will bring competitive pressure to some of our exports, especially clothing products, that is, American retailers and buyers will pfer orders for more clothing to Vietnam.

In response, what should China's enterprises do? Sun Huaibin's proposal is to increase the added value of products, hedge risks with exchange rate products, and flexibly choose to pay currencies.

Sun Huaibin: for our enterprises, on the one hand, we must try to make our products better and add value more efficiently, so that we can digest some pressure.

In addition, we can take some measures in financial means to avoid risks caused by exchange rate fluctuations, such as locking the exchange rate.

Third, we may have to make some flexible choices in choosing payment currencies.