The exchange rate forecast for GBP to VND remains cautious amid significant economic developments in both the UK and Vietnam. The GBP has been under pressure primarily due to a challenging economic outlook, with KPMG's recent forecast indicating a mere 1% growth for the UK economy in 2026. Analysts highlight rising unemployment and declining consumer sentiment as major factors dampening the pound's appeal.
Recent discussions surrounding the UK's upcoming budget, set for November 26, are leading to increased investor apprehension. Concerns about potential tax hikes and the possibility of the Bank of England cutting interest rates have contributed to the pound trading at multi-month lows. The GBP has also experienced notable declines against major currencies, prompting bearish sentiment among traders. It has depreciated approximately 0.5% against the US dollar recently, reflecting widening expectations of interest rate reductions.
On the other hand, Vietnam's currency, the VND, is facing its own set of challenges. Experts anticipate a 3% depreciation of the VND against the US dollar in 2025 due to global economic pressures and a strong dollar. The State Bank of Vietnam has proactively intervened in the currency market to stabilize the VND, recently selling around $1.5 billion through forward contracts. This intervention comes in light of economic headwinds such as tariffs imposed by the US, which further threaten the VND’s stability.
Amid these dynamics, the GBP to VND exchange rate currently stands at 34,843, just 0.9% below its three-month average of 35,142. Historically, this rate has remained relatively stable within a range of 34,259 to 36,001 over the past few months. This stability may provide a momentary respite for traders and businesses engaging in international transactions, although the outlook remains contingent on forthcoming financial policies and economic data from both the UK and Vietnam.
