Vietnam’s central bank lifted its daily reference rate for the US dollar on Monday, while commercial banks also marked up both dollar and yuan quotes, underscoring the pressure of a firmer greenback on the dong and on import pricing.
Vietnam central bank lifts dong reference rate
The State Bank of Vietnam set the mid-rate at 25,645 dong per dollar, up 2 dong from the previous session, putting the trading band at 24,363 to 26,927 dong. At 8:25 a.m., Vietcombank and BIDV were both quoting the dollar at 25,810 dong for purchases and 26,190 dong for sales, 20 dong higher on both sides than on Oct. 5.
The yuan also strengthened in local trading. Vietcombank raised its buying rate for the Chinese currency to 3,817 dong and its selling rate to 3,940 dong, while BIDV lifted its yuan quotes by 3 dong to 3,803-3,949 dong. The move matters because China remains Vietnam’s largest trading partner, so a firmer yuan typically feeds into the cost of imported goods, intermediate inputs and cross-border settlement.
Economically, the simultaneous uptick in the dollar and yuan points to a market that is still adjusting to broad US currency strength rather than a purely local policy move. When the dollar rises against multiple Asian currencies, central banks often tolerate gradual adjustments in domestic reference rates to avoid disorderly gaps between official guidance and market quotes. That helps preserve liquidity in the foreign-exchange market, but it also raises the local currency cost of servicing imports and can add pressure to inflation expectations if the trend persists.
For investors, the key issue is not just the day’s move but what it says about Vietnam’s currency management. A steadier dong is important for foreign portfolio flows, corporate earnings and the pricing of dollar-denominated liabilities. Exporters may welcome some currency flexibility if it supports competitiveness, but import-heavy sectors, retailers and companies with large dollar payables face margin pressure. The yuan’s rise in tandem also matters for manufacturers relying on Chinese supply chains, because it can lift input costs even if the dollar move is modest.
The broader narrative is one of controlled currency weakening rather than panic. That is usually a sign the authorities are trying to balance growth support with exchange-rate stability as global dollar demand stays firm. For markets, the next question is whether the State Bank allows a slower dong adjustment over coming sessions or steps in more aggressively if offshore dollar strength persists and regional currencies remain under pressure.
| Entity | Gains | Losses |
|---|---|---|
| Dollar holders | ▲Higher VND value | ▼Dong borrowers |
| Importers | ▲None | ▼Higher input costs |
| Exporters | ▲More pricing flexibility | ▼Softer local-currency revenue on imports |
| Yuan-linked suppliers | ▲Better VND conversion | ▼Vietnamese buyers |
