Business Briefing

Reference exchange rate

The State Bank of Vietnam set the daily reference exchange rate for the US dollar at VND 23,211/USD on August 29, up VND 1 from the last working day of the previous week (August 26). With the current trading band of +/-3 percent, the ceiling rate applied to commercial banks during the day is VND 23,907/USD, and the floor rate is VND 22,515/USD.

The opening-hour rates at many commercial banks saw fluctuations. Vietcombank listed the buying rate at VND 23,240/USD and the selling rate at VND 23,479/USD, down VND 20 and up VND 9 from August 26, respectively. Meanwhile, BIDV reduced both rates by VND 5 to VND 23,280/USD (buying) and VND 23,560/USD (selling).

Photo: Zing

Transport news: Transport in eight months sees positive signs

The number of air passengers reached 76.5 million in the first eight months of 2022, a year-on-year surge of 136%, and the August figure is estimated at 11.5 million, a jump of 473% from a year earlier, according to Tran Bao Ngoc, director of the Ministry of Transport’s Department of Transport, who further said the transport sector has seen positive signs, particularly in aviation.

Also in the period under review, nearly 496 million tonnes of cargo went through seaports across Vietnam, up 3% from the same period last year. The figure is expected to total 62 million tonnes this month, also up 3% year-on-year. Meanwhile, the volume of freight transported by inland waterways rose by 14% to 242.5 million tonnes, and inland water passengers hit 177 million, up 14% year-on-year.

Road transport saw a year-on-year increase of more than 16% in freight volume and over 19% in passengers. There were 3 million rail passengers, a year-on-year jump of more than 143%, while the rail freight volume picked up 3.5% to 3.9 million tonnes.

Photo: Zing

Market news: Vietnam’s CPI up 2.58% in January-August

Vietnam’s consumer price index (CPI) in August increased slightly by 0.005% from the previous month, 3.6% against December 2021, and 2.89% year-on-year, the General Statistics Office (GSO) announced on August 29. In the January-August period, the index went up 2.58% compared to the same period last year. Meanwhile, the country’s core inflation rose by 1.64%.

Among the 11 groups of main consumer goods and services, nine reported price hikes. Meanwhile, decreases were seen in the prices of educational services (down 3.14%) and post and telecommunications services (down 0.46%), according to VNA.

To actively respond to challenges posed by increasing inflation pressure, the Government has directed ministries, sectors, and localities to take concerted measures to stabilize prices and minimize inflation’s negative impacts on socio-economic development. According to the GSO, August’s core inflation was up 0.4% m-o-m, and 3.06% y-o-y, making it increase by 1.64% y-o-y in the first eight months of this year.

Photo: Zing

Trade news: Vietnam reports a trade surplus of nearly USD 4 billion in eight months

Vietnam has enjoyed a trade surplus of USD 3.96 billion in the first eight months of 2022, the General Statistics Office (GSO) announced on August 29. According to the office, the country’s import-export turnover is estimated to reach USD 64.34 billion in August, up 5.2% month-on-month and 17.3% year-on-year. The figure raised the country's total value during the January-August period to USD 497.64 billion, up 15.5% y-o-y, of which exports reached USD 250.8 billion, up 17.3% and imports were estimated at USD 246.84 billion, up 13.6%.

In the reviewed period, 30 commodities reported their export value of more than USD 1 billion, with that of six surpassing the USD 10 billion benchmarks. Meanwhile, 38 commodities see their import value of over USD 1 billion, with four surpassing the USD-10-billion mark.

From January to August, the US was Vietnam’s biggest importer, buying USD 77.7 billion worth of goods, while China was Vietnam’s largest exporter, selling USD 82.1 billion worth of products. Vietnam saw a trade surplus of USD 21.6 billion with the European Union, and a trade deficit of USD 47.8 billion with China in the period, up 46.4% and 21.9% y-o-y, respectively.

To assist exporters, the Ministry of Industry and Trade has helped them grasp the contents of new-generation free trade agreements (FTAs) to make the most of the opportunities and minimize the challenges brought about by these deals. Attention has also been paid to bettering trade promotions, simplifying administrative procedures, and providing enterprises with both domestic and international market forecasts.

Weather Forecast

August 30: Hanoi will mainly be cloudy and sunny, with the heat up to 35 Celcius degrees in some places. Rain can appear in the afternoon. Ho Chi Minh City is mostly cloudy and sunny. The temperature fluctuates between 32 - 33 Celcius degrees. In the evening and night of August 30, Ho Chi Minh City is cloudy, with showers and scattered thunderstorms. The nighttime temperature drops to around 26 - 27 degrees.

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