Last year, Chinese companies officially put into operation in Vietnam’s largest solar module factory. (Xinhua News Agency)
The Turkish lira crash was only a matter of weeks ago. According to “Tencent Technology” reports, even Vietnam has high debt and high inflation. As long as the market is turbulent, the whole economy may be faltering. It has been reported that four of “glass five countries” in the economic, including Argentina, Turkey, Brazil, Indonesia, and India, have had to follow the US Federal Reserve to raise interest rates. If Vietnam is added, it will become a true “glass six countries.”
“Tencent Technology” pointed out that the current global financial market is in the process of attracting capital competition. The problem is that the US interest rate hike has caused the US dollar to return to the US market. If some countries have high fiscal deficits, high inflation and high external liabilities, they are easily affected. This is also why when the United States raises interest rates, four of the “Glass Five” follow up.
“Tencent Technology” believes that when these economies have three high problems, as long as the world has a turmoil, it will trigger international capital sales in the market, and even the decline in foreign capital inflows and the rapid rise in financing costs. It has an impact on various economic indicators, and finally formed a cycle of stamping into the financial market.
According to Reuters, the booming Vietnamese economy in recent years may be a “sacrifice” for the US Federal Reserve to raise interest rates. The Central Bank of Vietnam blamed the situation on the impact of the dollar’s appreciation on the global market and the recent downturn in the Vietnamese stock market.
Since Vietnam relies heavily on foreign investment and exports, once the rate of external capital inflows slows, Vietnam will double the impact of the full-circle trading environment on its economy. This includes 98% of all SMEs in Vietnam, and there is not enough money to support development.
The recent weak performance of the Vietnamese currency has already made the Central Bank of Vietnam clearly stated that in order to ensure the stability of Vietnam’s economic and financial markets, it is ready to intervene in foreign exchange at any time, and will not hesitate to sell foreign exchange at a below-market level to maintain exchange rate stability. The Central Bank of Vietnam has injected $2 billion (about NT$60 billion) into the banking system from July 3 to 23. However, the Vietnamese currency still has doubts. It is expected that the Central Bank of Vietnam is expected to inject another 4-10 billion US dollars. In January of this year, HSBC announced a report that Vietnam may force the country’s debt ceiling, which is 65% of GDP, to become the country with the most stable financial resources in Southeast Asia.
At the same time, it has recently emerged as the economic “glass five countries”, including Argentina, Turkey, Brazil, Indonesia, India, etc. Four countries have had to follow up with the US Federal Reserve to raise interest rates. The reason why these five countries are called glass countries is that capital is constantly withdrawing, and the market continues to stage aggravated “dollars to go away”. Even the domestic coins have a “money shortage”. Financial markets are as fragile as glass.
Source: Apple Daily