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Business Recorder
12-07-2025
- Business
- Business Recorder
Jam Kamal meets Dy Governor SBV: Pakistan & Vietnam to renew, modernize banking sector cooperation agreement
ISLAMABAD: Pakistan and Vietnam have agreed to renew and modernize their bilateral agreement on cooperation in the banking sector to better address the needs of growing trade and evolving financial landscapes. On Saturday, Federal Minister for Commerce Jam Kamal Khan met with Dr Hoang Trung, Deputy Governor of the State Bank of Vietnam (SBV), to explore enhanced financial cooperation between the two countries. 'Both sides recalled the Memorandum of Understanding (MoU) signed in 2004 between the State Bank of Pakistan (SBP) and SBV, and welcomed the proposal to renew and modernize the agreement in light of changing dynamics in the financial sector and increasing bilateral trade,' the Ministry of Commerce said in an official statement. Jam reiterates commitment to expand trade ties with Belarus According to the Ministry, it was mutually acknowledged that a renewed MoU could provide a foundational framework for: (i) Strengthening banking cooperation; (ii) promoting cross-border investments; and (iii) facilitating regulatory collaboration between the two countries. Both parties emphasized the need to incorporate emerging areas into the new agreement — such as digital transactions, QR code-based payment systems, and financial inclusion. Commerce Minister Jam Kamal praised Vietnam's progress in digital banking and expressed interest in learning from Vietnam's experience to support Pakistan's own efforts in financial innovation. The two sides reaffirmed the essential role of central banks in creating an environment conducive to deeper economic and commercial engagement. The meeting concluded with a commitment to maintain institutional linkages through the International Relations Department of the SBP for structured and sustained follow-up. Copyright Business Recorder, 2025
The Star
08-07-2025
- Business
- The Star
Vietnam State Bank readies measures to counter tariff impact
HANOI: Vietnam's central bank stands ready to take steps to curb inflation and support growth, as it warns about the impact of higher US tariffs on the economy and its currency. Risks in global markets are "putting pressure on the management of monetary policies, exchange rates, and interest rates domestically, as well as on our efforts to achieve the 2025 economic growth target of eight per cent or higher,' State Bank of Vietnam Deputy Governor Pham Thanh Ha said at a briefing in Hanoi Tuesday (July 8). The central bank will continue to manage the dong in a flexible manner and use monetary policy tools to keep the FX market stable, to help boost the economy and control inflation, Ha added. After announcing a deal that will see a 20 per cent tariff on Vietnamese-produced goods and 40 per cent on those trans-shipped from elsewhere last week, US President Donald Trump stepped up his trade offensive Monday, unveiling letters threatening higher tariffs on a range of key trading partners. Vietnam said last week that negotiators are still working to finalise the details of the deal, providing little clarity to businesses and investors beyond the tariff rates disclosed so far. The South-East Asian nation saw growth accelerate in the second quarter as foreign buyers racing to get ahead of the threatened tariffs boosted Vietnam's exports. Still, Prime Minister Pham Minh Chinh cautioned last week that the economy "continues to face significant limitations, difficulties and challenges.' Vietnam's decision to maintain "low interest rates to support lending and economic growth requires some trade-offs,' and one of those trade-offs is the weaker dong, said Pham Chi Quang, head of the central bank's department for monetary policy, also speaking at the briefing. Trump's tariff letters "will have a significant impact on global supply chains, affect capital flows and influence FDI around the world,' as investors weigh the differing tariff levels, therefore, it will have a major impact on the currency, Quang said. The Vietnamese dong has been under pressure in recent weeks, hovering near a record low. Given the global slowdown, a weaker currency could help make Vietnamese goods more competitive as tariff pressure persists. The dong was little changed at 26,121 per dollar as of 11:31 a.m. after the briefing. The daily reference rate had been set at a record-low 25,121 per dollar Tuesday, the weakest since at least 2005, according to data compiled by Bloomberg. The dong is allowed to trade as much as five per cent on either side of the reference rate. - Bloomberg
Business Recorder
08-07-2025
- Business
- Business Recorder
Vietnam central bank to prioritise growth for rest of year amid global uncertainties
HANOI: Vietnam's central bank said on Tuesday it will continue to adopt flexible monetary policies for the rest of the year, with priority given to supporting growth. Uncertainties in the global economy will remain and will affect the Vietnamese economy, Deputy Governor of the State Bank of Vietnam Pham Thanh Ha said. 'Risks in the global financial and monetary markets have put pressure on monetary policy management, exchange rates, interest rates as well as the target for economic growth of at least 8% this year,' he said. The central bank said it will continue to urge banks to cut costs and speed up digitalisation to pave the way for cutting their lending rates. The central bank will also direct banks to boost their lending in a 'safe and effective' manner, with the focus on production and business projects, it said. He added that banks' total outstanding loans rose 9.9% by the end of June from the end of last year.
Business Times
08-07-2025
- Business
- Business Times
Vietnam central bank readies measures to counter tariff impact
[HANOI] Vietnam's central bank stands ready to take steps to curb inflation and support growth, as it warns about the impact of higher US tariffs on the economy and its currency. Risks in global markets are 'putting pressure on the management of monetary policy, exchange rates, and interest rates domestically, as well as on our efforts to achieve the 2025 economic growth target of 8 per cent or higher,' State Bank of Vietnam deputy governor Pham Thanh Ha said at a briefing in Hanoi on Tuesday (Jul 8). The central bank will continue to manage the dong in a flexible manner and use monetary policy tools to keep the FX market stable, to help boost the economy and control inflation, Ha added. After announcing a deal that will see a 20 per cent tariff on Vietnamese-produced goods and 40 per cent on those trans-shipped from elsewhere last week, US President Donald Trump stepped up his trade offensive on Monday, unveiling letters threatening higher tariffs on a range of key trading partners. Vietnam said last week that negotiators are still working to finalise the details of the deal, providing little clarity to businesses and investors beyond the tariff rates disclosed so far. The South-east Asian nation saw growth accelerate in the second quarter as foreign buyers raced to get ahead of the threatened tariffs boosted Vietnam's exports. Still, Prime Minister Pham Minh Chinh cautioned last week that the economy 'continues to face significant limitations, difficulties and challenges.' He said Vietnam must diversify markets and supply chains to adapt to the new US policy. Vietnam's decision to keep 'interest rates at a low level to help businesses and boost growth has made the dong less attractive to hold' and has put pressure on the currency, according to Pham Chi Quang, head of the central bank's department for monetary policy, also speaking at the briefing. The Vietnamese dong has been under pressure in recent weeks, dropping to a record low in June. Given the global slowdown, a weaker currency could help make Vietnamese goods more competitive as tariff pressure persists. BLOOMBERG
Reuters
08-07-2025
- Business
- Reuters
Vietnam central bank to prioritise growth for rest of year amid global uncertainties
HANOI, July 8 (Reuters) - Vietnam's central bank said on Tuesday it will continue to adopt flexible monetary policies for the rest of the year, with priority given to supporting growth. Uncertainties in the global economy will remain and will affect the Vietnamese economy, Deputy Governor of the State Bank of Vietnam Pham Thanh Ha said. "Risks in the global financial and monetary markets have put pressure on monetary policy management, exchange rates, interest rates as well as the target for economic growth of at least 8% this year," he said. The central bank said it will continue to urge banks to cut costs and speed up digitalisation to pave the way for cutting their lending rates. The central bank will also direct banks to boost their lending in a "safe and effective" manner, with the focus on production and business projects, it said. He added that banks' total outstanding loans rose 9.9% by the end of June from the end of last year.
