Business Briefing

Reference exchange rate

The State Bank of Vietnam set the daily reference exchange rate for the US dollar at VND 23,371/USD on September 29, up VND 25 from the previous day. With the current trading band of +/-3 percent, the ceiling rate applied to commercial banks during the day is VND 24,071/USD, and the floor rate VND 22,671/USD.

The opening-hour rates at many commercial banks increased. At 8:40 am, Vietcombank raised both rates by VND 15 to VND 23,580/USD (buying) and VND 23,890/USD (selling). Meanwhile, BIDV listed the buying rate at VND 23,625/USD and the selling rate at VND 23,905/USD, both up VND 20 from the end of September 28.

Photo: Zing

Banking news: Vietnam among world’s best performers in digital banking

Vietnam is among the world’s best performers in digital banking, with around VND 15 trillion (USD 631.18 million) in total poured into digital transformation, Le Anh Dung, Deputy Director of the State Bank of Vietnam (SBV)’s Payment Department, told a talk show on September 28. Held by the Vietnam Government Portal (VGP), the televised event saw speakers discussing digital transformation in banking and ways to have all people use and benefit from digital banking services.

Banks have undergone a digital transformation in a much shorter time frame in the wake of Covid-19, with both the sector and customers profiting greatly from the process, Dung said. Secretary-General of the Vietnam Banks’ Association (VBA) Nguyen Quoc Hung said the banking industry is a pioneer in digital transformation. Many major banks, such as VP Bank, Techcombank, MB, and HD Bank, have begun the process relatively early, reaping very encouraging results, he noted, adding that the Current Account Savings Account (CASA) has expanded 40 – 50%, resulting in a considerable surge in profit for the banks.

A survey by the SBV shows that 95% of the Vietnamese banks have developed a strategy for digital transformation and stayed active in adopting new technologies, including cloud computing and big data, in order to digitalize and upgrade their IT system and deliver better digital services, according to Dung.

Economist Dr. Pham Xuan Hoe highly spoke of the central bank’s efforts to push for the digital transformation progress, saying it has acted promptly to enhance the regulatory framework, with the adoption of policies in payment intermediaries and credit cards, among others. Citing the fact that 95% of payment and deposit transactions are made digitally, Hoe said that is why Vietnam, a developing country, has been regarded by a number of international organizations as one of the best performers in digital banking. Speakers also exchanged views on challenges facing commercial banks both internally and externally.

Photo: Zing

Market news: National CPI up 3.32% in the third quarter

Vietnam’s consumer price index (CPI) in the third quarter of this year expanded 3.32% as compared with the corresponding time last year, the General Statistics Office (GSO) said at a press conference in Hanoi on September 29. The figure in the first nine months of this year was up 2.73%, while core inflation rose 1.88%.

In September alone, the index went up 0.4% month-on-month, and 3.94% year-on-year, mainly due to increases in prices of essential goods and services as well as tuition fees in certain localities, according to head of the GSO Nguyen Thi Huong. Among the 11 baskets of consumer goods and services, nine experienced price hikes, while two others saw price drops, comprising transport services (down 2.235) and post and telecom services (down 0.04%).

Huong further explained that the average increase of petrol prices of 41.07% in the nine months has resulted in a 1.48 percentage point rise in the CPI. Moreover, higher demand for catering services after Covid-19 was brought under control and food price hikes also pushed up the index. The domestic gold price fell 1.71% on September month-on-month but jumped 4.06% year on year. It climbed by 6.22% in the nine-month period.

In September, the price of US dollar was up 0.53% against the previous month, and 3.45% as compared with the same period last year. In the first nine months, the price experienced a growth rate of 0.75. To deal with the rising inflation pressure, the Government has instructed ministries, agencies, and localities to issue many policies and roll out solutions concertedly, helping to ensure production and business stability.

Photo: Zing

Investment news: Vietnam’s new overseas investments surge 2.31-fold in nine months

Vietnamese enterprises have invested over USD 347.3 million in 80 new projects in the first nine months of 2022, rising 2.31-fold year on year, according to the Ministry of Planning and Investment (MPI). Meanwhile, USD 50.9 million has been poured into 15 existing ones, equivalent to 12% of that in the same period last year. The total investment, nearly 398.3 million USD, is equivalent to 69.6% of the nine-month figure in 2021.

The surge in new overseas investments is partly attributable to five major projects worth over USD 34.68 million each by the Vines Energy Solutions JSC in the US, Canada, France, Germany, and the Netherlands. Projects receiving additional capital include the one by Vingroup in the US (up USD 300 million), that of the Indochina Rubber Investment and Development Co. Ltd in Cambodia (up USD 76 million), and another by Vinfast in Germany (up USD 32 million).

The MPI said Vietnamese firms have invested in 13 sectors abroad in the nine months. The processing - manufacturing industry took the lead with over 291.6 million USD, equivalent to 55.2% of the total. It was followed by finance - banking - insurance (35.3 million USD, equivalent to 8.9%), wholesale and retail, mining, and agriculture - forestry - fisheries.

Among the 24 countries and territories recording Vietnamese investment, Laos is the biggest with USD 66.42 million in the capital, and Singapore ranks second with nearly 41.5 million USD, respectively accounting for 16.7% and 10.4% of the total. They are followed by the US, Germany, and the Netherlands. As of September 20, Vietnam had invested over 21.6 billion USD in 1,584 overseas projects. The capital is concentrated on mining (32.2%) and agriculture - forestry - fisheries (15.9%). Laos, Cambodia, and Venezuela received the most investment when respectively making up 24.7%, 13.6%, and 8.4% of Vietnam’s overseas investment, statistics show.

Photo: Zing

Weather Forecast

From the night of September 29 to October 1, it is predicted to rain in the Northern Delta and North Central regions. The South Central Coast, the South Central Highlands and the South will have showers and thunderstorms.

Hanoi: Lowest temperature: 23-25 Celcius degrees - Highest temperature: 26-28 degrees.

Northwest provinces: Lowest temperature: 21-24 degrees - Highest temperature: 26-29 degrees.

Northeast provinces: Lowest temperature: 22-25 degrees - Highest temperature: 26-29 degrees.

Thanh Hoa - Thua Thien Hue: Lowest temperature: 22-25 degrees - Highest temperature: 26-29 degrees

Da Nang - Binh Thuan: Lowest temperature: 23-26 degrees - Highest temperature: 30-33 degrees

Central highlands: Lowest temperature: 18-21 degrees - Highest temperature: 26-29 degrees

Southern provinces: Lowest temperature: 22-25 degrees - Highest temperature: 28-31 degrees

Vietnam Business & Weather Briefing (Sep 26): Number of air passengers down in September Vietnam Business & Weather Briefing (Sep 26): Vietnamese pomelo has a large potential for export, reference exchange rate up VND 10 at week’s beginning.

Vietnam Business & Weather Briefing (Sep 27): 248 aircraft registered under Vietnamese nationality Vietnam Business & Weather Briefing (Sep 27): Reference exchange rate up VND 12, 248 aircraft registered under Vietnamese nationality, Binh Phuoc province lures investment into ...

Vietnam Business & Weather Briefing (Sep 28): Vietnam, Kazakhstan to Open Direct Flights Vietnam Business & Weather Briefing (Sep 28): AEON supermarket chain promotes Vietnamese goods, foreign investment disbursement hits record high in nine months, Vietnam grosses US$77 ...