Bien Viet Securities Co has joined forces with the RoK Woori

Hanoi (VNA) – Bien Viet Securities Co has joined forces with the RoK Woori
Investment& Securities Ltd to launch a new index to track the trade-weighted
value of the Vietnam dong.

The VND-Index would aim to measure the strength of the dong relative to other
currencies from its major trading partners, including the US EU, Japan , China ,
Taiwan , Singapore and the RoK, according to Bien Viet Securities.

Last year, trade with these countries and territories accounted for 70 percent of
Vietnam ’s total export value and 74 percent of its import value, according to
the Ministry of Industry and Trade’s data.

The index has been designed to include a daily nominal index and a monthly real
index adjusted for inflation-each set at a starting - point of 100, computed as
the geometric mean of the bilateral exchange rates of the included currencies. The
weight assigned to the value of each currency in the calculation will be based
on trade data and will be annually updated.

“One of the major reasons that VND-Index is chosen to start at a basis point
of 100 is that the country’s trade deficit, around since 2006, was erased in
January, when exports exceeded import value by 467 million USD,” said Bien Viet
Securities CEO Vu Duc Nghia in a press release.

Initial calculations have shown that the dong was stable in June and July, a good
sign for the economy, Nghia said, noting that the index would be valuable tool for
fund managers in adjusting their investment portfolios.-Enditem