Vietnam Business & Weather Briefing (Oct 5): Vietnam among top Asian exporters to Spain

Business Briefing

Gold rate

This morning, the domestic gold price increased slightly. At dawn, the price of SJC gold was adjusted to increase by VND 200,000/tael, making the buying price VND 65.4 million/tael and the selling price VND 66.42 million/tael.

DOJI gold price in Hanoi increased by VND 100,000 in both directions to reach the level of VND 65.4 million/tael (buying) and VND 66.4 million/tael (selling). In Ho Chi Minh City, DOJI gold is listed at VND 65.3 million/tael (buying) and VND 66.4 million/tael (selling).

Reference exchange rate

The State Bank of Vietnam set the daily reference exchange rate for the US dollar at VND 23,417/USD on October 5, down VND 6 from the previous day. With the current trading band of +/-3 percent, the ceiling rate applied to commercial banks during the day is VND 24,119/USD, and the floor rate VND 22,714/USD.

The opening-hour rates at many commercial banks stayed stable. At 8:27 am, BIDV listed the buying rate at VND 23,750/USD and the selling rate at VND 24,030/USD, both unchanged from the end of October 4. Vietcombank also kept both rates unchanged at VND 23,720/USD (buying) and VND 24,030/USD (selling).

Photo: Zing

Export news: Vietnam among top Asian exporters to Spain

Vietnam has become one of the top Asian exporters to Spain, only behind China, on par with Hong Kong (China) and above Japan, Taiwan, and the Republic of Korea which are strategic markets of Spain. It was revealed by the Vietnam Trade Office in Spain at a teleconference on trade promotion with Vietnam trade offices abroad in September. The latest statistics by Spain Customs showed that two-way trade between Vietnam and Spain hit EUR 2.19 billion in the first half of this year. Of the figure, Vietnam’s export revenue hit USD 1.95 billion, up 56.41%. It continued to enjoy a high trade surplus worth EUR 1.71 billion, up 12.21%.

Its major exports include mobile phones and spare parts, machinery and equipment, garment and textile, footwear, coffee, aquatic products, wood and wooden furniture, and bamboo and rattan products. The Vietnam Trade Office in Spain asked for collaboration from localities and trade associations to hold online and offline workshops to introduce business opportunities to exporters, as well as hold more trips to Spain to connect Vietnamese importers, distributors, and major supermarkets with Spanish partners.

This year, the office will focus on supporting Vietnam’s exports of aquatic products, fruits and vegetables, and handicrafts. According to the office, Spain wants to sell more products to Vietnam, including meat and ham, alcoholic beverages, processed organic food, olive, organic cosmetics, milk and dairy products, machinery, and auto spare parts. Vietnamese ministries and agencies should partner with the office to accelerate the organization of the first meeting of the Inter-Governmental Committee on Economic, Trade and Investment Cooperation to seek solutions to trade barriers and boost ties in industry and energy, the office said.

Photo: Zing

Business news: 25 Apple’s partners have factories set up factories in Vietnam

The number of Apple manufacturing partners setting up their factories in Vietnam has increased to 25 at present, four more than the 2020 figure, the tech giant said in its list of supply partners for the fiscal year 2021. The Apple report released the list of 180 companies, accounting for 98% of the firm’s direct costs for materials, production, and assembly worldwide. Of the total, 25 of its manufacturing partners have established factories in Vietnam.

Specifically, there are several familiar Apple manufacturing partners to feature in the list, including Foxconn, Luxshare Precision, and component suppliers Samsung, LG Display, and Intel. During the fiscal year 2021, the tech giant added five new partners with factories in Vietnam, and at the same time eliminated Foster Electric which had factories in Binh Duong and Da Nang, VOV reported.

The list also added Luxshare Precision’s factory at the Vietnam – Singapore Industrial Park (VSIP) in the central province of Nghe An which has been in operation since 2020. Previously, Luxshare had manufactured Apple devices in the northern province of Bac Giang. JP Morgan’s recent report outlined that Vietnam is on the pathway to developing into an important manufacturing base for Apple, supplying 65% of AirPods, 5% of MacBooks, 20% of iPads, and Apple Watches by 2025. The move was considered a step forward for Vietnam in the field of manufacturing, contributing to maintaining the global supply chain, said Japanese business news outlet Nikkei Asia.

Photo: Zing

Economy forecast: UOB upgrades 2022 growth forecast for Vietnam to 8.2%

Given Vietnam’s strong economic recovery in the third quarter, the Singapore-based United Overseas Bank (UOB) has raised its forecast for the country’s GDP growth this year to 8.2%, from the previous prediction of 7%. The bank said the GDP expansion of 13.7% in Q3 is a record quarterly growth rate in Vietnam and surpassed the rate of 13.5% in India to become the highest in Asia this year, according to VNA.

The strong GDP rebound in Q3 was thanks to a record contraction of 6% in the same period last year when the country had to impose social distancing to curb Covid-19 transmission. Meanwhile, the border reopening and easing of travel restrictions since the beginning of 2022 have helped fuel business activities since Q2, especially in the service sector.

Over the past three quarters, the country’s GDP increased 8.8% year on year, compared to the growth of 6.4% in the first half. In particular, the construction sector expanded by 8.6% year on year during the nine months, manufacturing by 10.7%, and services by 10.6%. Recovery was particularly visible in the service sector, in which accommodation and food services rose 41.7% and entertainment services by 14.5% thanks to relaxed restrictions and the return of foreign visitors, according to the UOB.

The strong GDP recovery in Q3 has created a prerequisite for vigorous growth in the entire 2022. Given the year-on-year expansion of 8.8% in the nine months, the UOB decided to upgrade its growth forecast for Vietnam this year to 8.2%, it said in a report. However, it also expressed concern about the growth outlook for 2023, when the monetary policy strictly tightened by central banks is set to put pressure on the US and Europe – two main export markets that account for 41% of Vietnam’s total exports. The bank maintained the forecast for Vietnam next year at 6.6% based on an estimation that demand in the main markets will continue to slow down.

Weather Forecast

October 6: Hanoi is sunny in the morning, and rainy in the afternoon and night. In Ho Chi Minh City, scattered rain continues. Meanwhile, in Da Nang, there will be showers and thunderstorms in the morning and afternoon, and light rain at night.