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Update news yuan depreciation
The central bank believes that for an open economy like Vietnam, the sharp devaluation of the local currency will not help boost exports, but will do more harm than good.
For every one percent of the yuan depreciation against the dollar, the price of Vietnam’s yarn export to China would lose 3 US cents per kilogram, analysts estimate.
With the ‘destructive power’ believed to be much bigger than the 2008 crisis, the Chinese financial storm, if it occurs, will be a big threat to Vietnam, which has close economic relations with the world’s second-largest economy, experts say.
Samsung, LG and Intel have injected more money into Vietnam. Some multinational conglomerates are considering relocating their global production bases to Vietnam. Others are planning to set up factories in Vietnam.