Viet Nam's forex reserves projected to keep rising
|Viet Nam’s forex reserves have been on the increase in the recent years and are projected to keep rising in the coming time. (Illustrative photo: VNA)|
The reserves have seen an upward trend since 2011, as the amounts reached 105 billion USD last year from just 12.5 billion USD recorded in 2010, a 8.8-fold increase.
The upward trend in the country's forex reserves is predicted thanks to favourable factors such as growing trade surplus and overseas remittances.
Despite the adverse impacts of the COVID-19 pandemic since 2020, remittances sent home by overseas Vietnamese have continued to surge and are estimated to hit 18.9 billion USD this year.
As countries should hold reserves covering 100 percent of short-term debts or equivalent to the three-month import value, Viet Nam’s reserves equaled 4.3 months of imports in 2020, and 3.8 months in 2021.
The scale of Viet Nam’s forex reserves currently ranks fifth in Southeast Asia, 14th in Asia and 24th across the world.
The reserves came from foreign direct and indirect investment, remittances, and spending of foreign tourists, among others.