GBP to VND Exchange Rate
Ah, Vietnam: Land of cashew nuts, black peppercorns and about 16% of all animal species on the planet. Who knew?
What influences the GBP/VND exchange rate?
The State Bank of Vietnam is in charge of determining VND exchange rates based on the supply and demand for foreign currencies. The bank announces exchange rates and makes decisions regarding the exchange rate regime and the mechanism of regulating exchange rates.2
In 2016, the State Bank of Vietnam adopted a more flexible exchange rate mechanism by setting the mid-point rate of the VND against the USD daily. This mechanism calculates a daily reference rate based upon a weighted average of VND prices against eight foreign currencies in the US, EU, China, Taiwan, Japan, Thailand, Singapore, and South Korea. Prior to that, it had used a system in which the VND was traded around a fixed rate that the bank adjusted just a few times every year.3
The Vietnamese dong can experience rapid daily declines and is known as a volatile currency. In the last three years, it’s seen a low of 36,000 VND to 1 GBP up to a high of 27,000 VND to 1 GBP. While it has gained ground against the pound recently, that’s due more to the declines in the pound amidst Brexit uncertainty rather than a strengthening dong. Against the USD, the dong has declined steadily for the last ten years. Widening trade deficits and concerns about investors pulling money out of Asia are two factors affecting the decline.
“Since both governments signed the U.K.-Vietnam Strategic Partnership Agreement in 2010, bilateral trade has more than doubled between the two countries, reaching £3.58 billion at the end of 2015.” – Vietnam Chamber of Commerce & Industry4
In 2015, exports from the U.K. to Vietnam grew by 15%.4 The top exports from the U.K. to Vietnam include power generating machinery, fish and crustaceans, specialised machinery, electrical machinery, feed for animals, metal ores, general industrial machinery, professional and scientific equipment, medicinal and pharmaceutical products, and chemical materials.5
The UK is the 3rd biggest importer of products from Vietnam. Also, in 2014, it was one of the top 10 foreign investors in Vietnam.4
In 2015, Vietnam was ranked 47th in GDP, while the United Kingdom ranked 5th.6
In 2014, Vietnam was the 28th largest exporter and the 31st largest importer in the world, while the United Kingdom was the 9th biggest exporter and 5th biggest importer.7,8
Vietnam’s top exports include computers, leather footwear, integrated circuits, broadcasting equipment, and crude petroleum. Its top imports include telephones, light rubberised knitted fabric, flat flat-rolled steel, refined petroleum, and integrated circuits.7
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Currency Name: Vietnamese Dong
Currency Code: VND
Currency Symbol: ₫
Central Bank: State Bank of Vietnam
Countries Used In: Vietnam
Major Unit: One Dong
Minor Unit: Hào = 1/10 of a Dong, Xu = 1/100 of a Dong
Note Denominations: 100₫, 200₫, 500₫, 1,000₫, 2,000₫, 5,000₫, 10,000₫, 20,000₫, 50,000₫, 100,000₫, 200,000₫, 500,000₫
Coin Denominations: 200₫, 500₫, 1,000₫, 2,000₫, 5,000₫
VND to GBP exchange rate analysis. Check out our daily market analysis to learn the factors influencing the VND to GBP exchange rate today.