Recent forecasts indicate a complex outlook for the SGD to VND exchange rate. The Singapore dollar (SGD) has seen some stability, currently at 7-day lows near 20,541 VND, only 0.5% above its 3-month average of 20,440 VND and trading within a stable range of 20,185 to 20,603 VND. Analysts from the Monetary Authority of Singapore (MAS) maintain their current monetary policy settings, which has contributed to this stability. This decision follows a surprising 1.4% quarter-on-quarter GDP growth in Q2 2025, suggesting resilience in the Singapore economy despite global uncertainties and easing trade tensions. Core inflation in Singapore has also decreased significantly, providing MAS with additional leeway in managing monetary strategies.
On the other hand, forecasts for the Vietnamese đồng (VND) are less optimistic. UOB analysts predict further depreciation, projecting the VND to weaken to 25,800 per USD in Q2 and to 26,000 in Q3, driven largely by external pressures such as the impact of heightened U.S. tariffs and a strong U.S. Dollar Index. The recent imposition of reciprocal tariffs by the U.S. on Vietnam has exacerbated concerns, contributing to a challenging export environment that threatens further declines in VND value.
Furthermore, new regulations intended to bolster industry projects due to take effect in September 2025 may alter economic dynamics but are unlikely to provide immediate relief from the existing pressures on the VND. Overall, economic challenges in Vietnam alongside stable monetary policies in Singapore suggest a potential widening gap in the SGD to VND exchange rate in the near term. This scenario creates a cautionary backdrop for businesses and individuals engaged in international transactions, highlighting the importance of staying informed about evolving market conditions.
