The Vietnamese Shield Has Depreciated Significantly 9.3%&Nbsp; China'S Textile Exports Will Be Affected.

In February 11th, the Dong shield depreciated against the US dollar by 9.3%.

The Vietnamese central bank explained on its website 11 days ago that the government promulgated the guiding opinions on implementing the 2011 economic and social development plan in January 9th, which required the central bank to adjust its exchange rate actively, flexibly and appropriately according to market demand.

This central bank is right.

Vietnam has been faced with it since last year.

No major fluctuations in financial markets

There was no significant fluctuation in the domestic financial market and the private exchange market for the exchange rate adjustment.

Vietnam financial reporter Yu Zheng said that after Vietnam's commercial bank released the Dong Dong shield to the US dollar exchange rate generally 19500 shields convertibility 1 US dollars, but in the folk foreign exchange market, must increase 1500 Vietnam shield to be able to change to 1 US dollars, therefore this central bank lowered the Vietnamese shield to us dollar exchange rate, is closer to the actual exchange rate, helps to alleviate the enterprise and the individual holds the US dollar the present situation.

Exchange rate adjustment will have an important impact on Vietnam's import and export.

Engaged in automobile

According to statistics, Vietnam's domestic economic growth in 2010 was 6.78%, and its exports amounted to US $71 billion 600 million, an increase of 25.5% over the previous year, and imports of US $84 billion, an increase of 20.1% over the previous year.

The $12 billion 400 million trade deficit has made Vietnam's foreign exchange reserves short of pressure.

Transfer of Chinese textile orders

Some analysts pointed out that the substantial adjustment of the exchange rate sent the Vietnamese government to take effective measures to solve the macroeconomic problems and maintain macroeconomic stability.

However, the move will have an impact on the periphery and the international market.

As Vietnam's largest commodity exporter in 2010, Vietnamese goods will be more competitive in the US market.

As Vietnam's largest commodity importing country, the selling price of Chinese goods in Vietnam will increase.

Vietnam is a major exporter of agricultural products in Southeast Asia. Its exports of rice based agricultural products account for 24% of its total exports. Second of them are textiles, accounting for 19% of its total exports.

Depreciation will first benefit the export of these two products.

It is estimated that the FOB price per ton of Vietnamese rice will drop by another US $10, but this will not affect the export of ASEAN's other rice products for the time being.

However, the impact of the Vietnam shield depreciation on textile exports is obviously different from that of rice.

According to a survey of 385 international buyers released last month by Global Sources, the world's leading media company, most buyers said they needed to pay higher prices for Chinese products.

31% of respondents said they would increase purchases from Vietnam.

The survey also shows that China's textile exporters have already felt that orders are shifting. One of the reasons is that Vietnam's price is 30% cheaper.

Analysts believe that as Vietnam's textile and aquatic products export prices further reduce, some countries will more frequently export anti-dumping commodities to Vietnam's anti-dumping stick, which will bring new trouble to the Vietnamese government.