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Reference exchange rate up 4 VND at week’s beginning



The State Bank of Vietnam set the daily reference exchange rate at 23,684 VND/USD on May 22, up 4 VND from the last working day of previous week (May 19).

Reference exchange rate up 4 VND at week’s beginning hinh anh 1The State Bank of Vietnam sets daily reference exchange rate at 23,684 VND/USD on May 22. (Photo: VNA)

Hanoi – The State Bank of Vietnam set the daily
reference exchange rate at 23,684 VND/USD on May 22, up 4 VND from the last
working day of previous week (May 19).

With the current trading band of +/- 5%, the
ceiling rate applicable for commercial banks during the day is 24,868 VND/USD
and the floor rate 22,500 VND/USD.

The opening hour rates at commercial banks showed
slight fluctuations.

At 8:15 am, Vietcombank listed the buying rate at
23,260 VND/USD and the selling rate at 23,630 VND/USD, both unchanged from the
end of May 19.

Meanwhile, BIDV reduced both rates by 5 VND to 23,305
VND/USD (buying) and 23,605 VND/USD (selling).

During the week from May 15-19, the daily reference exchange
rate followed an upward trend and ended the week up 32 VND./.



Development of Vietnamese brands in CPTPP member markets under discussion



Solutions to promote the development of Vietnamese brands in member countries of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) agreement were discussed at a seminar hosted by the Cong Thuong (Industry and Trade) magazine in Hanoi on September 27.

Development of Vietnamese brands in CPTPP member markets under discussion hinh anh 1At the event (Photo: VNA)

Hanoi – Solutions to promote the development of Vietnamese brands
in member countries of the Comprehensive and
Progressive Agreement for Trans-Pacific Partnership (CPTPP) agreement were discussed at a seminar hosted by the Cong Thuong (Industry and Trade) magazine in Hanoi on September

Ngo Chung Khanh, Deputy Director of the Multilateral Trade Policy
Department under the Ministry of Industry and Trade (MoIT), said Vietnam has enjoyed stable
growth in its exports to Canada and Mexico since the CPTPP agreement took effect in January 2019, even during the
COVID-19 pandemic or amidst geopolitical fluctuations in the world.

Additionally, Vietnam’s trade surplus with the two markets usually accounts for
one-third to half of the combined trade surplus with countries, Khanh stressed.

Khanh pointed out ample room to promote exports to Canada,
Mexico and Peru, but noting that the image of Vietnamese brands in these
markets still remains modest.

to Trade Counselor Tran Thu Quynh from the Vietnam Trade Office in Canada, the
North American country is now one of Vietnam’s 10 most important trading
partners globally.

According to data from the Canadian government, including
transshipment through the US, Vietnam’s exports to Canada in 2022 increased by
26.4% in trade value compared to 2021.

Notably, five years after the implementation of the CPTPP,
Vietnam’s exports to Canada rose to 9.9 billion USD in 2022 from 4.1
billion USD in 2018.

The data from Vietnam Customs indicates that Vietnam’s export
value to Canada increased by a remarkable 110% over five years, meaning that Canada
is one of the billion-USD markets with the highest export growth among the
CPTPP member countries.

Quynh said CPTPP serves as a lever to encourage businesses from
both countries to pay more attention to each other’s product structures and
markets. It also helps promote the further development of supply chains, and transportation
and logistics services between Vietnam and Canada.

However, the utilisation of preferential tariffs under
the CPTPP still remains low. Up to over 60% of Vietnam’s exports to the country are products from foreign-invested
firms with their own brands, while Vietnamese businesses primarily export raw
materials or processed products.

Quynh advised domestic exporters to promote connection in production,
investment and development of technology and brand with Canadian partners, towards
effectively exploiting the CPTPP agreement.

According to Quynh, apart from supporting businesses in trade
promotion activities, participating in trade fairs and exhibitions, and seeking
orders, the Vietnam Trade Office in Canada always pays heed to raising awareness of how to utilise the CPTPP in Canada, and benefits and opportunities
provided by the trade agreement.

It also collaborated with Canadian ministries and sectors to hold
seminars, thus helping local firms understand more about opportunities to
partner with Vietnamese companies, she added./.


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HSBC says Vietnam remains an appealing destination for global enterprises

The HSBC Global Connections survey found that Vietnam’s economic resilience and competitive wages rank foremost in attracting international firms.



According to the study, 27 percent of respondents ranked Vietnam’s trained labor as one of the most appealing features for foreign enterprises, highlighting the country’s desirability as a manufacturing base. 

The same percentage is drawn to Vietnam’s expanding consumer market, emphasizing the allure of rising consumer income. Meanwhile, 23% believe that the country’s rising digital economy is a crucial selling factor for foreign corporate expansion. 

Many respondents stated they were drawn to the country because of its high smartphone penetration rate and thriving start-up scene. 

According to Tim Evans, CEO of HSBC Vietnam, the country, which has become known for its quick economic growth, also stands out as one of the best performers in the ASEAN area due to its excellent economic resilience during and after the COVID-19 pandemic. 

Tim Evans noted that the country’s resiliency, together with its hardworking, competent workforce and attractive cost structures, continues to attract significant foreign direct investment (FDI). 

However, Vietnam is more than an “FDI in, export out” story. The country’s rapidly increasing middle class is also a great potential for multinational corporations eager to get into the consumer story that will see Viet Nam become the world’s tenth largest consumer market by 2030, he observed. 

“Despite some short-term headwinds, Vietnam remains an attractive destination for foreign businesses, and we continue to see very strong interest in the Viet Nam story from customers across the HSBC network,” said the CEO of HSBC Viet Nam. According to new research commissioned by HSBC, international businesses from nine major economies are becoming more enthusiastic about their growth prospects in Southeast Asia. 

They anticipate 23.2 percent growth in the region’s sales over the next 12 months, compared to 20.1 percent in the previous year’s survey, and 4-5 times the pace of GDP development in Southeast Asia. This demonstrates foreign firms’ growing trust in the region. 

HSBC commissioned an online survey of 3,509 enterprises from nine markets: mainland China, India, the United Kingdom, France, Germany, the United States, Australia, Hong Kong, and GCC countries (United Arab Emirates, Saudi Arabia, Bahrain, Qatar, Oman, and Kuwait). 

Respondents to the survey were key decision-makers from companies with an annual revenue of at least $5 million that are already doing business in Southeast Asia or are considering doing so. The survey was open from July 25 through August 2, 2023.


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Interest rates for social housing developers and buyers proposed to be cut

Property market specialists advocated lowering interest rates on loans for investing in or purchasing social housing items to 4.5-6% per year, down from the current 8.2-8.7%.



Vietnam Real Estate Association (VNREA) polls show that social housing investors and buyers must take out high-interest loans. Investors pay 8.7% and homebuyers 8.2% annually. Buyers and investors are struggling with these interest rates.

The loan package of VND 120 trillion, according to Le Hoang Chau, Chairman of the HCM City Real Estate Association (HoREA), does not match the conditions of a preferential credit package for social housing. A preferred financing package for social housing projects must meet two critical criteria: a low-interest rate and a long repayment period.

Chau claims that when compared to low-income people’s financial capabilities, the average interest rate commercial banks charge buyers is still too high. 

According to Nguyen Chi Thanh, Deputy Chairman of the Vietnam Real Estate Brokers Association, interest rates for qualified buyers of social housing projects remain high. At the same time, buyers of social housing have substantially lower incomes than real estate prices.

As a result, Thanh believes that interest rates for homebuyers must be reduced.

Many studies show that workers’ earnings are frequently quite low. According to the Vietnam General Confederation of Labour, 75% of them must borrow money to cover their living expenses. They are unable to purchase social housing since the loan interest rate is 8.2% per year.

Someone with a steady monthly salary of VND 12 million must repay the loan at a high-interest rate over a period of up to 37 years.

He claims that if they can borrow at a lower interest rate of approximately 4.5% per year, the payment term will be reduced to about 19 years.

VNREA has recommended a 6% annual interest rate for social housing developers and a 4.5% annual interest rate for homebuyers, which is lower than the current rates of 8.7% and 8.2%.

In addition, VNREA suggests that the state implement appealing policies for investors, such as land plots, investor selection, and land allocation. The time required to complete investment procedures should be reduced from 24-36 months to 12 months.

VNREA advises real estate companies to rearrange their goods and select housing categories based on buyer income and market demand. They must also strengthen their corporate governance capabilities and re-determine the selling price.

At the same time, they must strictly adhere to investor agreements.

According to the Ministry of Construction, around 108 social housing projects are now being invested in and built.

Based on reports from 11 provinces and centrally-run cities, the ministry has issued a list of 24 eligible projects to participate in the 120 trillion VND credit package. These projects have a total investment capital of 31.67 trillion VND. The borrowing need for the projects is 12.44 trillion VND.

Ten projects of social housing and housing for industrial park workers began development in the first seven months of this year, totaling 19,853 units.

Source: Vietnamplus


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