Vietnam Business & Weather Briefing (July 23): Reference Rate Exchange Continues Decrease

Business Briefing

Gold rate

On July 23, Saigon Jewelry Company (SJC) kept the same trading price for gold bars as yesterday. To be specific, the buying price is listed at VND 64.9 million per tael while the selling price is VND 66.4 million/tael. The difference between the buying and selling prices decreased from VND 2 million per tael (yesterday) to VND 1.5 million (today).

Photo: Zing

Petrol price

On July 23, the US WTI crude oil price ended up the week at USD 95.09/ barrel. In Vietnam's domestic market, Nam Song Hau Petroleum Trading Joint Stock Company recently reported a loss of VND 251 billion in the second quarter of 2022. The company saw a net revenue increase of 43% over the same period last year, reaching VND 1,732 billion. However, COGS increased by 79% to VND 1,920 billion, exceeding net revenue, marking a gross profit of negative VND 188 billion.

On July 23, the retail price of gasoline in Vietnam is:

E5 RON 92: VND 25,073 /liter

RON 95: VND 26,070/ liter

Diesel oil: VND 24,858/ liter

Fuel oil: VND 16,548/kg

Reference rate exchange

USD - VND exchange rate at local banks continued to go down.

Eximbank: VND 23,280 per USD (buying) - VND 23,510 per USD (selling);

Vietcombank: VND 23,240 - 23,270 per USD (buying) - 23,550 VND per USD (selling)

In recent days, the VND interest rate traded on the interbank market has continuously increased. Specifically, on July 20, VND overnight interest rate increased to 2.16%, meanwhile, the USD rate ranged from 1.43% to 3.9%.

Photo: Zing

Aviation news: Vietjet to operate more Rolls-Royce Trent-700 powered A330s

Vietjet and Rolls-Royce have inked a 400 million USD contract to provide the Trent 700 engines and TotalCare®, Rolls-Royce’s technical and maintenance engine services, to power up to 10 A330 aircraft. Signing for the deal took place during the 2022 Farnborough International Airshow in the UK.

The Trent 700 is the engine specifically designed for this A330 aircraft and is widely recognized for its outstanding efficiency and reliability. With more than 65 million hours in service, the Trent 700 offers airlines world-class reliability, with a 99.9% dispatch rate. The engine will be optimized with TotalCare services, providing enhanced aircraft availability and operational certainty for the entire A330 fleet.

Ewen McDonald, Rolls-Royce Civil Aerospace, Chief Customer Officer, said: “We are delighted to execute this service agreement with Vietjet as the airline begins operating wide-body aircraft and expands its network into long-haul operations. We look forward to supporting their Trent 700 fleet for many years.”

Meanwhile, Vietjet Managing Director Dinh Viet Phuong said the Trent 700 engines supported by TotalCare services will bring a technology breakthrough to Vietjet’s fleet, helping improve flight range and quality and thereby increasing their aircraft’s technical reliability and operational efficiency. “We hope this partnership with Rolls-Royce will also boost trade promotion among the countries while making intercontinental travels more convenient and economical in the future,” Phuong said. Vietjet put its first A330 aircraft into service in late 2021 and currently has two A330s in its fleet. The airline will continue expanding its wide-body fleet to better serve its expanding international flight network in the coming time.

Photo: VNA

Export news: Vietnam becomes world’s sixth largest fibre, yarn exporter

Vietnam has surpassed the Republic of Korea to become the world’s sixth largest fibre and yarn exporter after shipping abroad USD 2.37 billion worth of these items in the first five months of 2022. The revenue increased 10% from a year earlier, according to the Vietnam Cotton and Spinning Association (VCOSA). Meanwhile, textiles and garments, fiber, yarn, and fabric brought home USD 18.73 billion in total exports during the period, rising 20.81% year on year. That includes USD 14.99 billion in textiles and garments (up 22.2%), USD 376.8 million in geotextiles (up 27%), and USD 979.8 million in materials (up 19.2%).

VCOSA noted China accounted for nearly 60% of Vietnam’s textile and garment exports. Meanwhile, the US and Europe, which are the world’s biggest textile and garment importers, have reduced shipments from China, giving Vietnam a chance to expand its market share. The association also cited the World Health Organisation’s prediction that new Covid-19 variants will continue appearing in 2022, expecting the country’s fiber and yarn segment will continue to be the main recovery driver of the industry and be less affected by the pandemic compared to the apparel segment, which is labor intensive since its manufacturing is mostly conducted by the machine.

VCOSA added Vietnam’s economic integration into the world, especially the participation in free trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU - Vietnam Free Trade Agreement (EVFTA), which also promises breakthrough developments for the fiber and yarn segment.

Weather Forecast

July 24-25: The North and North Central region will have showers and thunderstorms in the afternoon and at night. In the South, there will be scattered showers and thunderstorms in the afternoon and evening. During thunderstorms, there is a possibility of tornadoes, lightning, hail, and strong winds.

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