Nam Thanh Company specializes in processing wool products for export to the EU, South Korea, and Japan. Except for the EU, all orders from the other 2 countries are paid in USD. Thus, the rising VND/USD exchange rate has benefited the company.
"My company signed contracts before the rise in exchange rate, so we are now benefitting. Because the USD appreciates, we get more when we convert into VND", Vu Thi Lan Thanh, Chairman, Board of Directors, Nam Thanh Company, said.
Similarly, Garco 10 Company is also enjoying more profits thanks to the rising exchange rate. According to expert Ngo Chi Long, the current exchange rate will hold until the end of 2015. However, it is also forecast that early 2016 will see notable fluctuations due to actions by the US Federal Reserve. Thus, Vietnamese exporters should be prepared for upcoming market occurrences.
"As USD appreciates and is predicted to rise in 2016, Vietnamese Dong’s value will also need to be re-adjusted to avoid adverse impacts on export. But we also have to consider impacts on import as well", the expert Ngo Chi Long said.
Long also said that exporters should enhance their management capacity and production efficiency to gain more foreign currency, while importers should be flexible when finding materials supply sourcee
