Photo: Thanh Nien

Business Briefing

Gold rate

At the last session of last week (June 19), the domestic gold price was listed by DOJI Group at VND 67.8 million/tael (buying) and VND 68.65 million/tael (selling). The difference between the buying and selling price at DOJI is VND 850,000/tael. Compared to the last two week's closing session (June 12), the price decreased by VND 50,000 per tael for buying and VND 900,000 per tael for selling.

The sharp decrease and the big gap between the selling and buying prices cause heavy losses to gold investors. To be specific, if one buys gold at DOJI Group on June 12 at the price of VND 69.5 million/tael and sells it on June 19 at the price of VND 68.65 million/tael, he will lose VND 1.75 million dong/tael.

Reference exchange rate

The State Bank of Vietnam announced that the central VND/USD exchange rate decreased slightly to VND 23,089/ USD. Commercial banks list the buying and selling rate as follow:

Vietcombank: VND 23,100 (buying) - VND 23,380 (selling) per USD

VietinBank: VND 23,020 (buying) - VND 23,460 (selling) per USD

Photo: Bao Gia Lai

Market news: Domestic shopping demand predicted to strongly rebound

The domestic shopping demand is forecast to recover and gradually increase as Vietnam has recorded a relatively high vaccine coverage which helps ensure safety for consumers in shopping activities. According to the Ministry of Industry and Trade, the resumption of tourism will stimulate the demand for shopping and consumption, while the outlook for domestic consumption will be brighter thanks to the recovery of production, the return to work of workers, and increased income.

The ministry said it will continue to closely monitor the supply and demand, and the prices of essential commodities to take timely regulatory measures; closely coordinate with ministries and sectors in price management to control prices and prevent hoarding, speculation, and price manipulation activities. It will coordinate with the industry and trade departments of localities in the work, making reasonable recommendations and proposals to stabilize the market.

The nation's total revenue from retail sales of goods and services in May reached VND 477.3 trillion (USD 20.5 billion), up 4.2 percent month-on-month, and 22.6 percent higher than that of the same period last year. The figure increased 9.7 percent year on year to VND 2,257 trillion in the first five months of the year. Experts attributed the positive results to the abundance of goods and rising purchase power.

Photo: VGP

Export news: Vietnam, Malaysia sign cooperation document on timber business

The MoC will not only strengthen economic cooperation between Malaysia and Vietnam but also create opportunities for their manufacturers to increase exports and imports. Although both Malaysia and Vietnam are producers of timber products, the collaboration will provide opportunities for manufacturers to increase their exports and imports between Malaysia and Vietnam. The MoC is also projected to generate other spin-offs such as socio-economic benefits and employment opportunities, according to VOV.

Muhtar Suhaili, chief executive officer of the Malaysian Timber Council (MTC) said Malaysia is committed to further sustainable development of the timber industry of both nations, and the country can benefit from higher foreign direct investment by Vietnam in furniture manufacturing and access to the European Union (EU) market through Vietnam's free trade agreements.

According to Muhtar, skilled human resources and the availability of the local labor force will be advantages for Vietnam. Vietnam’s skilled manpower and its availability from the local population will be an advantage, on top of its proximity to China which provides easier access for furniture parts and wooden panels. The MoC is also in line with the high-level ASEAN agreement adopted in 2000 when the Initiative for ASEAN Integration (IAI) was launched to narrow the development gap and enhance ASEAN's competitiveness as a region. It will also protect the interests of both countries against regulations that may affect the interests of the timber industry.

Upon addressing the ceremony, TEAM President Chua Song Fong said, “Vietnam’s timber industry has been growing very well over the past decade and we would like to capitalize on this and explore business opportunities. We would like to increase our market share in Vietnam and the MoC can deepen investment flows for Malaysia,” said President of MFC Khoo Yeow Chong, citing supplying furniture parts to Vietnam as a good possibility.

Among the top five products that Malaysia exported to Vietnam in 2021 were particleboard (US$9.35 million), wooden furniture (US$7.77 million), fiberboard (US$5.99 million), and sawn timber (US$5.46 million), and builders joinery & carpentry (US$3.39 million).

Photo: VNA

Weather Forecast

June 20: According to the National Center for Hydro-Meteorological Forecasting, in the morning and afternoon of June 20, Hanoi will be cloudy, and sunny. Meanwhile, in the afternoon, there will be occasional showers and thunderstorms in some places.

Ho Chi Minh City will be cloudy in the morning and sunny at noon. However, strong winds and thunderstorms may appear at night.

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