Vietnam Business & Weather Briefing (July 22): Real Estate Businesses Return to Bond Channel

Business Briefing

Gold rate

On July 22 morning, large enterprises in Hanoi traded SJC gold bars at VND 64.3 - 66.32 million per tael (buying - selling), an increase of VND 1.1 million/tael in each direction compared to yesterday. In Ho Chi Minh City, the purchasing price is similar to the Hanoi market, but the selling price is VND 20,000 cheaper per tael.

Reference exchange rate

The State Bank of Vietnam set the daily reference exchange rate for the US dollar at VND 23,212/USD on July 22, down VND 1 from the previous day. With the current trading band of +/-3 percent, the ceiling rate applied to commercial banks during the day is VND 23,908/USD, and the floor rate is VND 22,516/USD.

The opening-hour rates at many commercial banks also went down. Vietcombank listed the buying rate at VND 23,240/USD and the selling rate at VND 23,550/USD, both down VND 10 from July 21. Meanwhile, BIDV cut VND 25 from both rates, listing the buying rate at VND 23,265/USD and the selling rate at VND 23,545/USD.

During the week from July 18-22, the daily reference exchange rate for the US dollars was adjusted up on Monday but then down on all the remaining days. It ended the week down VND 33.

Photo: Zing

Real estate news: Real estate businesses return to the bond channel

Many real estate businesses have returned to the bond channel to raise capital after an absence in April, mobilizing thousands of billions of Vietnamese dong. Data of the Vietnam Bond Market Association (VBMA) shows that in May, real estate businesses began to return to find capital on the bond channel and accelerate bond issuance in June. In May, realty businesses issued a total of nearly 6.9 trillion VND (294.6 million USD) of bonds, then in June, the figure was more than 7.5 trillion VND.

It is estimated that from the beginning of this year to the end of June, real estate businesses issued a total of 152.4 trillion VND of bonds, of which more than 94% were issued privately. Also during this period, VBMA said real estate was the group of enterprises with the second highest bond issuance volume, after commercial banks. According to experts, bonds still account for a large proportion of the capital used for projects of real estate enterprises, especially in the context that bank credit is under tight control.

KB Securities Vietnam Joint Stock Company (KBSV) said in the context of strict control of credit in the real estate sector and strict supervision of corporate bond issuance, real estate businesses will find it more difficult to raise capital in the next few quarters. In addition to the two traditional capital mobilization channels, which are credit and domestic bonds, listed real estate enterprises have diversified their capital sources, accessing new channels such as investment funds, mergers and acquisitions (M&A), and international joint ventures.

Photo: Zing

Business news: Import-export turnover surpasses the 400-billion-USD mark

Vietnam’s total import-export value topped USD 403 billion as of July 15, with a trade deficit of around USD 1 billion. According to the General Department of Customs, in the period, the country earned USD 201 billion from exports, while spending USD 202 billion on buying goods from abroad. The trade turnover in 2022 is forecast to exceed USD 700 billion, of which exports will approach the USD 400 billion mark.

The Ministry of Industry and Trade said that, in order to achieve the export growth target of 8% this year and maintain the trade surplus of the previous years, the ministry is stepping up support for businesses in market information and export promotion by taking advantage of commitments in signed free trade agreements (FTAs) and through joining global value chains to find new markets; and at the same time encouraging them to create new products.

It has also guided localities to build and develop brands for strong products, and well handle the issue of traceability to ensure the quality of goods to meet export standards of other countries.

Weather Forecast

The Northern Delta and Midlands will experience the highest temperature of 34-36 degrees. In the provinces from Thanh Hoa to Phu Yen, the intense heat is likely to last for many days to come.

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