Malaysian companies will not suffer from dong devaluation
Vietnam’s official devaluation of its currency, the dong, by 9.3% may have been larger than most expected, but Maybank Investment Bank Research says the impact on Malaysian companies in Vietnam will be minimal, according to The Edge Malaysia. Property developers would benefit from higher selling prices in future, denominated in US dollars.
Among the Malaysian property developers doing business in Vietnam are Gamuda, WCT, SP Setia, Ireka and Berjaya Land. Gamuda’s current projects are RM800 million (US$262 million) worth of infrastructure construction at Yenso in Hanoi it is providing in return for land, and a RM277 million ($90.7 million), 60% stake in a development at Tan Thang in Ho Chi Minh City.
Other Malaysian companies likely to be affected by the devaluation are financiers Maybank, Public Bank, CIMB, RHB and Hong Leong Bank, plus consumer based companies QL Resources and Malayan Flour Mills. AirAsia and Malaysia Airlines also fly regularly to Hanoi and Ho Chi Minh City.
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