The Malaysian Ringgit (MYR) has recently shown significant strength against the Vietnamese Đồng (VND), with the exchange rate reaching 90-day highs near 6,377 MYR/VND, which is 1.8% above its three-month average of 6,264. This appreciation is attributed to several favorable developments in the Malaysian economy and monetary policy.
Analysts indicate that the MYR's ascent is largely due to a positive economic outlook, fueled by stable interest rates and expected economic growth. The Ringgit has gained strength following the ASEAN Summit, where Malaysia secured advantageous trade agreements, including tariff exemptions on numerous products, which enhance export prospects. Furthermore, Bank Negara Malaysia's decision to maintain the Overnight Policy Rate at 3% reflects a commitment to economic stability, bolstering investor confidence in the MYR. With Malaysia's GDP growth recorded at 5.2% in Q3 2025, these factors collectively contribute to a resilient Malaysian economy, further supporting the Ringgit.
In contrast, the Vietnamese Đồng faces challenges that may lead to depreciation. Experts predict a potential decline of approximately 3% against the US dollar in 2025, primarily driven by a combination of external economic pressures and trade tensions. The State Bank of Vietnam has intervened in the market by selling $1.5 billion to stabilize the currency amidst these pressures. Additionally, the US Federal Reserve's recent rate cut has provided Vietnam some breathing room, though it remains vulnerable to external economic fluctuations, including tariffs imposed by the US.
Moreover, the performance of oil prices plays a crucial role, as Malaysia is a significant oil exporter. Current oil prices are at $64.29 per barrel, slightly below the three-month average and showing volatility in a 15% range. This fluctuation can impact the MYR, as lower oil prices could diminish export revenues and economic stability.
Overall, the comparative strength of the MYR against the VND is expected to persist in the short term, provided Malaysian economic indicators continue to reflect resilience and investor confidence remains high. However, external pressures on the VND, particularly from trade dynamics and potential global economic adjustments, may counterbalance these gains. Ultimately, individuals and businesses engaged in transactions between MYR and VND should monitor these developments closely to optimize their foreign exchange strategies.
