Recent analysis indicates a strengthening of the British Pound (GBP) against the Vietnamese Đồng (VND), trading at a 60-day high of approximately 35,552 VND, which is 1.4% above the three-month average of 35,046 VND. This rise in value is attributed to a combination of factors surrounding the Bank of England's (BoE) recent monetary policy decisions and the broader economic outlook.
The BoE, on December 19, 2025, decided to maintain its policy rate at 4.75% following a cut in November. The monetary policy statement suggested that although interest rate cuts may become a reality, future decisions will require careful consideration. This sentiment contributed to bullish momentum for the GBP, particularly as UK retail sales figures are anticipated to show signs of recovery.
Additionally, the UK faces a more cautious economic environment, with a downward revision in GDP growth forecasts from 1.5% to 0.75%. Increasing inflation, reported at 2.6% in November, further complicates the economic landscape. Experts maintain that these factors—including monetary policy, fiscal measures, and inflation trends—will play significant roles in the GBP's performance.
On the other hand, the Vietnamese Đồng (VND) is expected to face challenges, with predictions suggesting a depreciation of around 3% against the US dollar in 2025, which may also influence its exchange rate against the GBP. The recent introduction of regulations for cryptocurrency transactions, requiring dealings to be in VND, might create additional dynamics in the currency markets.
Severe flooding in Northern Vietnam has also raised concerns about the economic impact on the VND. The recent restrictions on large transactions, effective since November 1, 2025, further complicate the currency's stability.
Overall, analysts suggest that the GBP may continue to strengthen against the VND in the near term, provided that the current economic conditions in both the UK and Vietnam evolve in line with current expectations. Maintaining awareness of these developments is crucial for individuals and businesses engaging in international transactions.
