Vietnam Business & Weather Briefing (August 22): Petrol prices unchanged in latest adjustment

Vietnam Business & Weather Briefing (August 22): Hanoi’s real estate market sees prospects in coming times, reference exchange rate up VND 17 at week’s beginning.

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Business Briefing

Reference rate exchange: VND 23,222/USD

Real estate news: Hanoi’s real estate market sees prospects in coming times: Savills Vietnam

Petrol price news: Petrol prices are unchanged in the latest adjustment

Weather Forecast

A tropical depression is forming in the east of Luzon island (Philippines).

Business Briefing

Reference rate exchange

The State Bank of Vietnam set the daily reference exchange rate for the US dollar at VND 23,222/USD on August 22, up VND 17 from the last working day of the previous week (August 19). With the current trading band of +/-3 percent, the ceiling rate applied to commercial banks during the day is VND 23,918/USD, and the floor rate VND 22,525/USD.

The opening-hour rates at many commercial banks either stayed stable or dropped slightly. At 8:30 am, Vietcombank listed the buying rate at 23,235 VND/USD and the selling rate at 23,545 VND/USD, both unchanged from the end of August 19. Meanwhile, BIDV reduced both rates by VND 5 to VND 23,260/USD (buying) and VND 23,540/USD (selling). During the week from August 15-19, the daily reference exchange rate for the US dollar generally followed an upward trend. It ended the week up VND 45.

Vietnam Business & Weather Briefing (August 22): Petrol prices unchanged in latest adjustment
Photo: Zing

Real estate news: Hanoi’s real estate market sees prospects in coming times: Savills Vietnam

The real estate market in Hanoi is gradually recovering and may see a lot of development prospects in the time to come, according to analysts from property consultation company Savills Vietnam. The market showed signs of recovery in commercial leasing activities, serviced apartments, housing purchases, and hotel room rental capacity.

In terms of the retail market, supply is assessed as being underactive. Demand for retail space is focused mainly on supermarkets, convenience stores, healthcare services, and food and beverage outlets. Meanwhile, fashion and cosmetics show signs of slowing in terms of demand. In the first half of this year, Hanoi’s economy grew by 7.8%, a rise of 29% year-on-year and higher than the 7.2% increase in the first half of 2019. Total retail sales of goods and services reached 14.6 billion USD, up 16.5% year on year.

However, the rental space market was not very good, as occupancy decreased by 3 percentage points on-quarter, and 4 percentage points on year, reaching 89%. The capital city’s western region reported the highest increase in the additional rental area, reaching 30,600sq.m. The retail podiums saw the highest increase in leasable area, reaching 12,200sq.m, continuing to account for the highest proportion.

Forecasting the market in the coming time, Savills experts said that Vietnam’s economy has recovered flexibly since the beginning of the year, affecting the performance of the real estate market in the coming time. Thereby, the retail segment will continue to grow in the second half of 2022, with retail podiums accounting for 69% of the total future supply, and shopping malls 31%.

Matthew Powell, Director of Savills Hanoi, stated that the tourism market is recovering and many hotels in the capital city are therefore posting high occupancy rates from the return of business and domestic visitors. The villa market in Hanoi will welcome more than 2,131 new units from 13 projects by the end of the year, but these projects are facing the hard fact that buyers are losing interest in the city’s housing market.

Sales prices are currently quite high while supply is limited, leading to a low absorption rate, said Powell, adding that transactions are mainly in the secondary market, among the investors. Once supply at a more reasonable price returns, liquidity, and operational conditions will improve, he added

Demand for apartments is strong in Hanoi, as its population is expected to hit 9.8 million by 2030, and its gross regional domestic product (GRDP) in the 2026-2030 period is forecast to reach 8.5%. Its apartment market will continue to be active, as 14 new projects and the next phase of two existing ones will supply some 11,726 units to the market in the second half of this year.

Vietnam Business & Weather Briefing (August 22): Petrol prices unchanged in latest adjustment
Photo: Tien Phong

Petrol price news: Petrol prices are unchanged in the latest adjustment

Petrol prices were kept unchanged in the latest adjustment made on August 22 by the Ministries of Industry and Trade, and Finance, after five consecutive downward adjustments. The capped retail price of E5 RON92 bio-fuel stayed at VND 23,720 (USD 1.01) per liter, while that of RON95-III remained at VND 24,660 per litre.

Meanwhile, the price of diesel oil was raised from VND 850 to VND 23,750 per liter, and that of kerosene was up by VND 730 to VND 24,050 per liter. The prices of mazut oil stayed unchanged at VND 16,540 per kg. Since the beginning of this year, petrol prices have been adjusted 22 times, with 12 times up and eight times down. The price of RON 95-III petrol has dropped by VND 8,210 cheaper and E5 RON92 by VND 7,580 per liter compared to the end of June. The current petrol prices have returned to the level in late 2021 and January this year.

Weather Forecast

According to the National Center for Hydrometeorological Forecasting, a tropical depression is forming in the east of Luzon island (Philippines). By the night of August 23 and August 24, the storm is likely to enter the northeastern waters of the South China Sea and will become the third storm entering the Vietnamese sea in 2022.

From the evening of August 23, the storm’s circulation will cause strong winds over the eastern seaboard and middle of the South China Sea.

Valerie Mai