Business Briefing

Gold rate

SJC gold price was adjusted up VND 150,000 in both directions. With this adjustment, the price of SJC gold in Hanoi and Da Nang is VND 65.9 million per tael (buying) and VND 66.72 million per tael (selling). In Ho Chi Minh City, SJC gold is still bought at the same level as in Hanoi and Da Nang but sold for less than VND 20,000.

Reference exchange rate

The State Bank of Vietnam set the daily reference exchange rate for the US dollar at VND 23,219/USD on August 31, down VND 2 from the previous day. With the current trading band of +/-3 percent, the ceiling rate applied to commercial banks during the day is VND 23,917/USD, and the floor rate is VND 22,522/USD.

The opening-hour rates at many commercial banks dropped. At 8:30 am, Vietcombank listed the buying rate at VND 23,250/USD and the selling rate at VND 23,460/USD, both down VND 10 from the end of August 30. Meanwhile, BIDV reduced both rates by VND 5 to VND 23,280/USD (buying) and VND 23,560/USD (selling).

Photo: Zing

Aviation news: Domestic air transport sees strong rebound after a pandemic

Domestic air transport has recorded spectacular recovery and breakthrough growth in the first eight months of 2022, according to a report issued by the Airports Corporation of Vietnam (ACV) on August 31. The report said over 66 million passengers used air service in the last eight months, including 61 million domestic ones, up 19.9% from the 2019 figure. The number of passengers increased by 40% in June, 42% in July, and 40% in August this year, compared to the same period in 2019.

Meanwhile, the volume of goods going through airports in the first eight months of 2022 decreased by 8.7% compared to the same period three years earlier, with the proportion of international cargo going up to 79% from 66% in 2019. The overall rate of flight delays in the first seven months of this year was 22.41%, the report said. ACV demanded airports to coordinate in operating, ensuring flight safety and the quality of service in the context of increasing transport volume; strengthening monitoring and control of takeoffs and landings in the coming time.

With an annual growth rate of over 15% in the period 2010-2019, Vietnam is the fifth fastest-growing aviation market in the world and the fastest in Southeast Asia. However, the COVID-19 pandemic pushed back the development of the aviation industry worldwide during the 2020-2021 period, causing negative impacts on the air transport chain, especially Vietnamese airlines. Due to the closure of the international market, domestic airlines almost completely stopped international operations, while domestic transport in the last two years saw respective declines of 42.1% and 80% compared to 2019.

Photo: Zing

Market news: Eight-month revenue from retail, services up 19.3%

Total revenue from goods retail and services in the January-August period increased by 19.3% year on year to over VND 3.679 quadrillion (USD 156.8 billion), which is a high growth rate for the period many years, according to the General Statistics Office (GSO). Of the figure, goods retail revenue was estimated at VND 2.925 quadrillions, a rise of 15.4% from the same period last year.

Retail revenue of cultural, and education products surged 26.7%, garments 14.4%, food, and foodstuff 12%, and home appliances and tools 7.6%. Localities recording high growth in goods retail revenue included Khanh Hoa (27.8%), Ho Chi Minh City (18.2%), Binh Duong (16.6%), Hai Phong (12.8%), Quang Ninh (12.2%), and Hanoi (10.7%).

Meanwhile, revenue from accommodation and eating out services in the period picked up 48.1% year on year to VND 377.8 trillion thanks to rocketing demand for entertainment and tourism in summer after more than two years of travel and going-out restrictions prompted by the Covid-19 pandemic.

Can Tho post a 95.5% rise in this type of revenue, Da Nang 84%, HCM City 76.3%, Quang Ninh 72%, and Hanoi 65.2%. The 8-month traveling and tourism revenue was estimated at VND 15.4 trillion, up 3.4 times from the same period last year, but equal to only 47.7% of the same period in 2019. Revenue from other services came to VND 361 trillion, up 24.2% year on year. To stimulate consumption, the GSO suggested the Ministry of Industry and Trade closely monitor developments in the domestic and world economy and proactively propose suitable response measures. The ministry should also coordinate with relevant ministries and agencies to guide enterprises in better optimizing signed free trade agreements, including the RCEP.

Photo: Zing

Export news: Trade surplus to hit USD 1 billion this year

Vietnam’s export revenue in 2022 is expected to reach about USD 368 billion, a year-on-year rise of 9.46%, according to a report by the Ministry of Industry and Trade (MoIT). The number would surpass the targets set by both the Government and the ministry, at around 8%. Meanwhile, import value is estimated at USD 367 billion in the year, resulting in a trade surplus of some USD 1 billion, fulling the set target, the report says.

In the first half of this year, the export-import value was over USD 371.3 billion, including more than USD 186 billion worth of exports, up 17.3% from the corresponding time last year. The export of the domestic economic sector rose 19.5%, higher than the 16.6% increase of the foreign direct investment (FDI) sector, including crude oil, which, the ministry said, reflects efforts by domestic firms in production and business recovery and supply chain resumption amid difficulties.

Notably, during the six-month period, 29 items reported their export turnover surpassing USD 1 billion, four items more than the same period last year, making up 91.2% of the total value. The ministry said the enterprises have optimized free trade agreements (FTAs), especially new-generation ones, to boost exports.

Vietnam experienced export growth in the markets it has FTAs with, ranging from 12%-34%, said Tran Thanh Hai, deputy head of the MoIT’s Agency of Foreign Trade, adding that a growth rate of 30% was seen in such markets as Canada and Mexico.

The ministry said it will continue to keep a close watch on the Covid-19 situation, policy changes adopted by countries and major partners, and international trade to give consultations to the Government in the management work. It will also pay more attention to the implementation of FTAs to help businesses optimize opportunities generated by the trade deals, step up trade promotion and further streamline administrative procedures.

Photo: Zing

Weather Forecast

September 1: The hot weather in the North will last until the end of today (August 31). From this afternoon, the temperature will decrease. It is forecasted that from tomorrow, the hot weather will end in the northern provinces. Rainy and slightly sunny weather are predicted for September 1.

The Central Highlands and the South will have scattered thunderstorms in the evening. The lowest temperature is 20-23 Celcius degrees. The highest is 29-32 Celcius degrees.

The Southern provinces will enjoy a sunny day with scattered showers and thunderstorms in the afternoon and evening.

It is forecasted that from September 3, the southwest monsoon will increase, resulting in heavy rain in the Central Highlands and the South.

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