17/03/2021 - 08:47
Macro Outlook: A Positive View on the VND in 2021
The Vietnam dong has been rock solid vs. the USD amid the broad market volatility of the past year. Historical devaluations have resulted in a view among some investors that the currency represents a major downside risk. We believe this perception to be inaccurate and expect the currency to remain resilient in USD terms going forward. Our expectation is based on the macroeconomic drivers, which we see as favoring appreciation rather than depreciation. Trade relations with the US, Vietnam’s largest export market, are also a supportive factor.
