The recent trends in the SGD to VND exchange rate reflect a mix of strengthening economic indicators in Singapore and ongoing depreciation pressures faced by the Vietnamese Đồng. The SGD is currently trading at 20,252 VND, which is just 0.9% below its three-month average of 20,438 VND, indicating a notable stability within a 2.2% range.
In Singapore, the Monetary Authority of Singapore (MAS) has opted to maintain its monetary policy, underscoring confidence in the nation's economic resilience despite global uncertainties. The country's GDP growth of 2.9% in the third quarter of 2025 has surpassed expectations, which may support the SGD in the face of external pressures. The MAS also revised its core inflation forecast downward, reflecting easing inflationary conditions, which could further bolster the currency.
On the other hand, the Vietnamese Đồng has been under significant pressure, experiencing notable depreciation against major currencies. Market analysts from Vietcombank Securities project a further 3% depreciation against the US dollar in 2025, influenced by a strong USD and ongoing economic challenges. The Vietnamese government may consider additional currency depreciation as a strategy to enhance export competitiveness following the imposition of US tariffs on key exports. However, a recent rate cut by the US Federal Reserve might offer some stabilization for the VND.
Overall, while Singapore's economic performance appears strong and supportive of the SGD, the VND faces challenges from external tariffs and domestic pressures. This dynamic suggests that the SGD might maintain its strength against the VND in the near term, depending on ongoing economic conditions and external influences. Analysts and forecasters will be closely monitoring these developments as they may significantly impact international transaction costs.
