Vietnam Business & Weather Briefing (July 7): Reference Exchange Rate up VND 7

Business Briefing

Gold rate

The domestic gold price as of 9 am on July 7 was listed by DOJI Group at VND 67.55 million/tael (buying), and VND 68.25 million/tael (selling). Compared to the opening session of the previous session, the price decreased by VND 350,000 per tael for buying and VND 250,000 per tael for selling.

Meanwhile, Saigon SJC listed the buying price at VND 67.65 million per tael and the selling price at VND 68.25 million/tael. Compared to the previous session, the gold price at Saigon SJC decreased by VND 250,000/tael in both transactions.

Reference exchange rate

The State Bank of Vietnam set the daily reference exchange rate for the US dollar at VND 23,178/USD on July 7, up VND 7 from the previous day. With the current trading band of +/-3 percent, the ceiling rate applied to commercial banks during the day is VND 23,872/USD, and the floor rate is VND 22,484/USD.

The opening-hour rates at all commercial banks rose. Vietcombank listed the buying rate at VND 23,210/USD and the selling rate at VND 23,520/USD, both up to VND 15 from July 6. BIDV also raised both rates by VND 5 to VND 23,225/USD (buying) and VND 23,505/USD (selling).

Photo: Reatimes

Real estate news: Indochina Capital to pour 1 billion USD into industrial real estate in Vietnam

Indochina Kajima Development Company, a joint venture between Indochina Capital and Kajima Corporation, has recently launched Core5 Vietnam. This is an industrial real estate investment and development platform focused on the nationwide rollout of world-class factory and warehouse properties for lease throughout the country’s key manufacturing and logistics markets.

Speaking at the launching ceremony in Ho Chi Minh City on July 6, Peter Ryder, Indochina Capital’s CEO, said his company has been operating in Vietnam for over two decades. Core5 Vietnam plans to roll out a collection of exceptional industrial assets across Vietnam’s key manufacturing markets, with an investment of some 1 billion USD over the next 5-7 years, he said, according to VNA.

It offers various solutions such as ready-built factories for lease, ready-built warehouses for lease, and build-to-suit industrial properties. Its key services include development and construction consultation from project managers, facility management advice from operation professionals, and licensing support to ensure timely business setup so manufacturing activities or logistics companies can launch their businesses quickly. The firm’s current portfolio covers 90ha of land with seven projects in the north and another in the south.

Keisuke Koshijima, representative director and executive vice president of Kajima Corporation, said the established manufacturing industry combined with the rapidly growing e-commerce sector create favorable market conditions for the expansion of the Core5 brand into Vietnam. He said the country’s manufacturing and logistics sector is burgeoning given the supply chain shift from China which has led to several prominent manufacturers relocating to Vietnam.

Photo: VIR

Aviation news: Vietnam Civil Aviation Authority proposes air ticket prices hike

The Civil Aviation Authority of Vietnam (CAAV) has just proposed raising air service prices on domestic routes against a background of rising fuel prices. In a recent proposal sent to the Ministry of Transport, CAAV asked for a reduction in environmental protection taxes and import taxes on jet fuels, and an increase in service fees on domestic routes.

CAAV proposed to raise passenger transportation fees on domestic routes by 3.75 percent to the rate set in 2014. Meanwhile, it wanted the government to reduce or waive environmental protection taxes and import taxes on fuels until the end of 2023, according to Vietnamnet.

According to CAAV, if fuel costs account for over 39 percent of total costs and other costs stay the same, local airlines are seeing the fuel costs for July 2022 rising by up to nearly 93 percent compared to that of December 2014, and by nearly 115 percent compared to that of September 2015. And the rising fuel costs are driving total costs for July 2022 up by 39 percent against December 2014 and by over 46 percent against September 2015.

The government has just proposed to the National Assembly Standing Committee to cut environmental taxes on energy. Following the government's proposal, the environmental protection tax on jet fuel will be lowered to VND1,000 per liter from the current VND1,500.

Photo: VGP

Weather Forecast

July 7-9: Thunderstorms and heavy rain in the North are likely to last until about July 9. During thunderstorms, there is a possibility of tornadoes, lightning, hail, and strong winds. The Central and South Central region will have high temperatures, commonly from 35-37 Celcius degrees.

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