Balance of payment surplus surges beyond expectations

Balance of payment surplus surges beyond expectations

The surplus of the country's overall balance of payment last year is estimated to hit US$10 billion, much higher than any previous projection, Nguyen Van Binh, a governor of the State Bank of Viet Nam has confirmed.

SBV forecast early last year that the 2012 surplus would be roughly $3 billion against $2.6 billion in 2011. The $10 billion figure is a extremely high, and was last matched in 2007 when the country joined the World Trade Organisation and became a hot destination for foreign investors.

Binh attributed the improvement of balance of payment to the country's trade surplus.

Viet Nam recorded a trade surplus of $780 million last year, its first since 1993, according to the General Department of Customs.

International reserves doubled compared to the beginning of 2012, providing ample liquidity for the market without causing any inflation pressure, while maintaining a very stable foreign exchange market and exchange rate during the whole course of 2012

According to the Ministry of Planning and Investment's report on 2013 socio-economic development, Viet Nam's forex reserve in 2012 reached 12 weeks of imports.

SBV forecast that this year's overall balance of payment would be lower than last year, standing at roughly $7 billion.

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