When the State Bank of Vietnam cut policy rates in July, the move seemed out of sync with the rest of the world's central banks. It now looks prescient, given the recent loosening monetary bias by Asian central banks. Are more rate cuts in the cards? And will they actually spur GDP growth? VinaCapital’s Chief Economist Mike Kokalari provides his view on where rates are headed.
Recently, central banks in the US, EU and China have all taken actions that indicate that the days of further loosening of monetary policy are over – and the US Fed guided that it will begin shrinking its USD4.5 trillion balance sheet later this year. The US and the EU have different motivations for tightening monetary policy than China has, but one commonality is the potential to affect Vietnam.
While the differences between frontier and developed markets are many, sometimes there are themes or trends that have done well in the latter and are now taking hold in Vietnam. Budget airlines are one such trend, and VietJet Air is leading the way. Vietnam Airlines, the country’s flag carrier, has historically dominated both the international and domestic markets. Foreign ownership of airlines is limited to 30%, meaning that it is difficult for overseas carriers to enter the market.
Ho Chi Minh City, 3 April, 2017 – VinaCapital, one of Vietnam’s leading investment management and real estate development companies, today announced that Michael Kokalari has joined the company as Chief Economist. In this role, he will be responsible for working with the company’s in-house research team to conduct economic, market and corporate analysis and to provide investment advice and ideas to all current and future VinaCapital managed funds. Mr. Kokalari will also spearhead VinaCapital’s thought leadership initiatives.
HO CHI MINH CITY, 28 March 2017 – VinaCapital and RMIT Vietnam are proud to announce the establishment of a four-year term professorship to recruit an outstanding international academic talent to conduct research in economics and the capital market in Vietnam. The official agreement between VinaCapital and RMIT Vietnam was signed earlier today and was witnessed by the Honorable Philip Dalidakis, Victoria’s Minister for Small Business, Innovation and Trade, who was visiting the university’s Ho Chi Minh City campus as part of a trip to Vietnam to promote investment in Victoria, home of RMIT’s main campus in Melbourne.
Vietnam recorded another stellar year for foreign direct investment (FDI) in 2016, with USD24.4 billion registered. That figure is 7% higher than 2015’s robust haul of USD22.7 billion.