Vietnam’s government intends to mitigate economic risks arising from escalating Middle East conflict by stepping up action against speculation in gold and foreign currency markets, Prime Minister Pham Minh Chinh told a high-level meeting on 23 June, VietnamNet has reported→view source.
Key details:
- Global risks: Middle East conflict raising energy costs, disrupting shipping and trade, increasing inflation risks
- Monetary policy: Call for flexible, effective inflation control, interest rate management, exchange rate stability
- Credit: Expansion to remain controlled and targeted at productive sectors such as exports, agriculture, deep processing
- Speculation: Crackdown ordered on gold and foreign currency speculation
- Fiscal policy: Continued tax and fee cuts to support business and job creation; accelerated public investment in infrastructure
- Energy security: Orders to boost oil and gas reserves, ensure stable fuel and electricity supply
Analysis
The announcement signals a desire to be seen as proactive in managing currency stability, though it is not clear that speculation is a primary driver of current market pressures or that administrative crackdowns alone will have a significant impact.
The emphasis on curbing speculation, rather than stronger macroeconomic measures, suggests the leadership wants to maintain stability through visible but less disruptive actions, and to continue to pursue its broader growth agenda, amid rising global uncertainties.
See also: How Low Can the Vietnamese Dong Go? Why it’s Sliding & What Might Happen Next