World gold price (Photo: Vietnamnet)

Business Briefing

Gold rate

On the morning of May 25, SJC 9999 gold's price stayed at the same level as last week. However, as of 2:30 pm on May 25, SJC 9999 gold's price decreased by VND 500,000 in both buying and selling transactions compared to the early morning.

Photo: Vietnam Economic News

Reference exchange rate

The State Bank of Vietnam set the daily reference exchange rate for the US dollar at VND 23,103/USD on May 25, unchanged from the previous day. With the current trading band of +/-3 percent, the ceiling rate applied to commercial banks during the day is VND 23,796 /USD, and the floor rate is VND 22,409/USD.

The opening-hour rates at some commercial banks saw strong rises. At 8:30 am, Vietcombank listed the buying rate at VND 23,050/USD, up 40 VND from May 24, and the selling rate at VND 23,360/USD, up VND 50. Meanwhile, BIDV raised both rates by VND 35, listing the buying rate at VND 23,070/USD and the selling rate at VND 23,350/USD.

Photo: VOV

Market news: BIDV, ADB release report on Vietnam’s financial market

The Bank for Investment and Development of Vietnam (BIDV) and the Asian Development Bank (ADB) on May 25 co-organized a workshop to announce a report on Vietnam’s financial market in 2021 and its 2022 outlook. BIDV Senior Executive Vice President Tran Phuong said it is a result of research by a team of ADB and BIDV experts.

Looking back at 2021, the report states that the world economy recovered quite quickly along with a rapid increase in inflation due to the majority of countries reopening socio-economic activities. The global financial market continued its fast recovery given the new normal condition and strengthened confidence.

In that context, Vietnam's economy recovered quite quickly thanks to an appropriate change in epidemic prevention strategy, which allowed reopening from the beginning of the fourth quarter of 2021. As a result, growth in the quarter reached 5.22 percent, compared to minus 6.02 percent in the third quarter, helping the economy expand by 2.58 percent for the entire year. Meanwhile, inflation was kept at a low level of 1.84 percent last year. Vietnam's financial market maintained a positive growth momentum thanks to a stable macroeconomy and the implementation of fiscal and monetary policies in support of people and businesses.

In the banking sector, the combined pre-tax profit of 29 commercial banks that account for 80 percent of the market surged by nearly 32 percent, while their operating costs were reduced by 15 percent. At the same time, the banking sector continued with programs on debt restructuring and supporting pandemic-affected customers with a total value of VND 52 trillion in 2021 and VND 20-25 trillion in 2022.

The stock market saw the benchmark VNIndex go up 35.7 percent, and the market capitalization increased by 48.4 percent. The number of trading accounts reached a record 1.5 million. The insurance market maintained a growth trend, with revenues reaching 217 trillion VND in 2021, up nearly 19 percent from the previous year. However, the report points to emerging risks in the banking market such as rising potential bad debts, an increase in financial crimes, the downward adjustments in the stock market, or market manipulation.

Dr. Can Van Luc, Chief Economist of BIDV, said Vietnam’s economy is forecast to better recover this year to grow 5.5-6 percent. Such growth is also projected to come with a high inflation rate of about 3.8-4.2 percent, he added. Luc said the financial market will benefit from the recovery, with the banking industry’s profit expected to grow by 20-25 percent on an annual average and the insurance market sustaining its growth. The stock market, meanwhile, is forecast to make necessary adjustments to become more stable and healthier.

Recommendations made in the report focus on completing a legal framework and policies on handling bad debts and making the securities and bonds markets healthier, improving risk control in the financial system, and accelerating the building of institutions and a legal corridor for the management and development of the digital economy, digital finance and digital banking.

Photo: Doanh Nghiep & Tiep Thi

Weather Forecast

May 26-27: Thunderstorms tend to increase in the North, especially in the mountainous and midland areas. There is a possibility of moderate to heavy rain in the evening and at night. The South enjoys cloudy weather with scattered rain in the morning and sunny in the afternoon. However, some places will be rainy with a possibility of tornadoes, and lightning.

May 26-30: In the north, thunderstorms tend to increase from May 26 and are likely to last until about May 30. During thunderstorms, there is a possibility of tornadoes, lightning, hail, and strong winds.

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