Vietnam Business & Weather Briefing (August 26): Leather, footwear exports exceed USD 14 billion

Vietnam Business & Weather Briefing (August 26): The reference exchange rate down VND 22 on August 26, storm Maon has weakened into a tropical depression, and foreign investors retain confidence in the Vietnamese business climate

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Business Briefing

Gold rate: VND 66.05 million per tael (buying) – VND 66.87 million per tael (selling)

Reference exchange rate: VND 23,212/USD

Investment news: Foreign investors retain confidence in Vietnamese business climate

Export news: Vietnam’s leather and footwear exports exceed USD 14 billion in 7 months

Weather Forecast

Storm Maon has weakened into a tropical depression.

Business Briefing

Gold rate

Early this morning (August 26), gold, silver, and gem trading establishments adjusted their gold prices, bringing the domestic gold price down.

SJC gold price was adjusted down VND 250,000 in both directions compared to the dawn of the previous day. With this decrease, the price of SJC gold is VND 66.05 million per tael (buying) and VND 66.87 million per tael (selling).

Vietnam Business & Weather Briefing (August 26): Leather, footwear exports exceed USD 14 billion
Photo: Zing

Reference exchange rate

The State Bank of Vietnam set the daily reference exchange rate for the US dollar at VND 23,212/USD on August 26, down VND 22 from the previous day. With the current trading band of +/-3 percent, the ceiling rate applied to commercial banks during the day is VND 23,908/USD, and the floor rate VND 22,515/USD.

On the contrary, the opening-hour rates at many commercial banks rose. At 8:30 am, BIDV listed the buying rate at VND 23,285/USD and the selling rate at 23,565 VND/USD, both up 5 VND from the end of August 25. Vietcombank raised both rates by VND 10 to VND 23,260/USD (buying) and VND 23,570/USD (selling).

During the week from August 22-26, the daily reference exchange rate for the US dollar generally followed an upward trend except for August 24 and 26. It ended the week down VND 10.

Vietnam Business & Weather Briefing (August 26): Leather, footwear exports exceed USD 14 billion
Photo: Zing

Investment news: Foreign investors retain confidence in Vietnamese business climate

Despite the negative impact of the Covid-19 pandemic, foreign direct investment (FDI) inflows into the nation during the past eight months of the year reached roughly USD 16.8 billion, thereby affirming foreign investors’ trust in the Vietnamese investment climate. This figure is equal to 87.7% compared to the same period last year, according to figures given by the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.

Despite newly-registered capital not having fully recovered due to anti-epidemic measures put in place last year, adjusted capital with capital contribution and share purchases made by foreign investors have positively increased by 50.7% and 3.6%, respectively.

The FIA pointed out that, although newly-registered capital in the reviewed period decreased compared to last year’s corresponding period, the number of fresh investment projects has been increasing each month since the beginning of the year, reaching the highest level in August. In line with this, the number of newly-registered projects in the initial eight months of the year was equivalent to that of the same period recorded last year.

Foreign financiers have invested in 18 industries out of 21 national economic sectors, of which, the processing and manufacturing industry takes the lead with a total investment of over USD 10.7 billion, duly accounting for 63.9% of the total registered investment capital. Singapore retains its leading position in terms of FDI attraction with a total investment of over USD 4.53 billion, thereby accounting for 27% of total investment capital in the Vietnamese market, followed by the Republic of Korea with nearly USD 3.5 billion.

The disbursement capital in the reviewed period reached USD 12.8 billion, up 10.5% against the same period from 2021 and up 0.3 percentage points compared to the first seven months of the year. Local enterprises are constantly recovering, maintaining, and expanding both production and business activities moving into the post-pandemic period, the FIA noted.

Vietnam Business & Weather Briefing (August 26): Leather, footwear exports exceed USD 14 billion
Photo: Zing

Export news: Vietnam’s leather and footwear exports exceed USD 14 billion in 7 months

Overseas shipments within the first seven months of 2022 earned more than USD 14 billion for the leather and footwear sector, an annual increase of 13%. During the period, the export revenue of the products from North America and the EU grew by 24% and 17.5%, respectively. The export value also saw a good recovery in markets signing a free trade agreement with Vietnam, for example, an 18.2% increase in exports to Vietnam-EU FTA members, and a 10.5% rise in CPTPP member markets.

Phan Thi Thanh Xuan, Vice Chairwoman of the Vietnam Leather Footwear and Handbag Industry, said that the sector will face both opportunities and challenges in the remaining months of the year. Key export markets of Vietnam like the EU and US are experiencing a reduction in consumption, hence an impact on purchasing power, she added.

Vietnam earned USD 20.78 billion from the export of leather and footwear in 2021, up 4.6% from 2020, including USD 17.77 billion from footwear alone, up 6.1%. Various world-famous brands, including Nike, Adidas, Reebok, and Puma, have selected Vietnam as a destination for outsourcing and setting production bases.

Vietnam Business & Weather Briefing (August 26): Leather, footwear exports exceed USD 14 billion
Photo: Dantri

Weather Forecast

Storm Maon has weakened into a tropical depression. As a result, in the Northern region, heavy rain reduces. In Ho Chi Minh City, thunderstorms will gradually decrease, while Da Nang continues to be sunny.

August 27: Hanoi will be sunny and cloudy, followed by showers and thunderstorms. Daytime temperatures range from 32 – 33 Celcius degrees. Ho Chi Minh City will also be cloudy and sunny. The highest temperature fluctuates between 32 – 34 Celcius degrees. The common average humidity is 69-79%.

Valerie Mai