Vietnam Business & Weather Briefing (Sep 21): Petrol Prices Continue to Drop

Business Briefing

Gold rate

As of 14:45 pm on September 21, SJC’s 9999 gold price increased by VND 50,000 per tael in both buying and selling afternoons compared to the morning. Specifically, the gold price of 9999 was traded by Doji Jewelry Group and SJC:

SJC Hanoi: VND 65.9 million/tael (buying) – VND 66.72 million/tael (selling)

SJC HCMC: VND 65.9 million/tael (buying) – VND 66.7 million/tael (selling)

SJC Da Nang: VND 65.9 million/tael (buying) – 66.72 million VND/tael (selling)

Hanoi Doji: VND 65.8 million/tael (buying) – VND 66.55 million VND/tael (selling)

Doji Ho Chi Minh City: VND 65.9 million/tael (buying) – VND 66.5 million/tael (selling)

Reference exchange rate

The State Bank of Vietnam set the daily reference exchange rate for the US dollar at VND 23,301/USD on September 21, unchanged from the previous day. With the current trading band of +/-3 percent, the ceiling rate applied to commercial banks during the day is VND 24,000/USD, and the floor rate VND 22,601/USD.

The opening-hour rates at many commercial banks also stayed stable. At 8:30 am, BIDV listed the buying rate at VND 23,530/USD and the selling rate at VND 23,810/USD, unchanged from the end of September 20. Vietcombank also kept both rates unchanged at VND 23,500/USD (buying) and VND 23,810/USD (selling).

Photo: Zing News

Petrol price

Petrol prices continued to be adjusted down in the latest adjustment made on September 21 by the Ministries of Industry and Trade, and Finance. The retail price of E5RON92 bio-fuel dropped by VND 450 to a maximum of VND 21,780 (USD 0,92) per liter while that of RON95-III was cut by VND 630 to VND 22,580 per liter.

The prices of oils also reduced, with that of diesel oil cut by VND 1,650 to VND 22,530 per liter, and that of kerosene down by VND 1,970 to VND 22,440 per liter. Mazut oil 180CST 3.5S was priced at VND 14,650 per kg, a decline of VND 380. The two ministries also determined to extract VND 450-451 per liter from petrol prices and VND 300-741 per liter from diesel and kerosene prices for the petrol price stabilization fund.

So far this year, petrol prices have been adjusted 25 times with 13 times up and 11 times down and one kept unchanged. The petrol prices are now at the lowest level this year.

Photo: Zing News

Growth forecast: ADB maintains a 6.5% GDP projection for Vietnam this year

The Asian Development Bank (ADB), in its flagship economic update released on September 21 in Hanoi, has maintained its favorable economic outlook for Vietnam, with the country’s gross domestic product (GDP) projected to expand by 6.5% this year and 6.7% next year, according to VOV.

According to Andrew Jeffries, ADB country director for Vietnam, the Vietnamese economy recovered faster than expected in the first half of the year and is now expected to grow amid a challenging global environment. “The steady recovery was supported by strong economic fundamentals and driven by a faster-than-expected bounce back of manufacturing and services,” said Jeffries.

Presenting the Asian Development Outlook (ADO) Update 2022, Nguyen Minh Cuong, ADB chief economist, noted that the local economy is performing reasonably well amid uncertainties occurring in the global economy. Restored global food supply chains will contribute to boosting agriculture production this year, but high input costs will still constrain the overall recovery of the local agriculture sector. Softening global demand has greatly slowed manufacturing, with the manufacturing purchasing managers’ index in August recording a slight fall to 52.7 from 54.0 in June. However, the outlook for the manufacturing sector moving forward remains bullish, particularly given the strong foreign direct investment in the sector.

Most notably, fully normalized domestic mobility and the lifting of Covid-19 travel restrictions for foreign visitors will contribute to supporting a robust rebound in tourism moving into the second half of the year, thereby driving the overall growth of the service sector. Increasing inflation in the United States and the European Union has heightened inflationary pressure in the country. However, Vietnam’s prudent monetary policy and effective price controls, especially with regard to petrol, should keep inflation in check at 3.8% this year and 4.0% in 2023, unchanged from the bank’s projection made in April.

Despite this, the country’s economic outlook continues to face heightened risks, according to the report. The global economic slowdown could negatively impact Vietnam’s exports, while labor shortages are expected to weigh on the fast recovery of the services and labor-intensive export sectors throughout the remainder of the year. The slow delivery of planned public investment and social spending, especially the implementation of the Government’s Economic Recovery and Development Programme, could greatly slow growth both this year and next, the report says.

Photo: Zing News

Export news: Lam Dong ships its first 70 tonnes of durian to China

In the Central Highlands province of Lam Dong on September 21 exported its first 70 tonnes of durian to China. The shipment came following the signing of the protocol concerning the work between the Ministry of Agriculture and Rural Development of Vietnam and the General Administration of Customs of China (GACC) over two months ago.

Deputy Director of the provincial Department of Agriculture and Rural Development Nguyen Van Chau said that the export is of great significance, as China is currently the world’s largest durian consumer market. This will help businesses and farmers in Lam Dong in particular and Vietnam in general gain higher profits from this fruit, he added.

Currently, Lam Dong has one Production Unit Code (PUC) and 2 Pack House Codes (PHCs) recognized as eligible for the export of fresh durian to the world’s most populous country. In the coming time, 10 more PUCs are expected to be granted to local units and businesses. Lam Dong is growing durian on over 14,000 hectares, mainly in Da Huoai, Di Linh, Bao Lam, and Da Teh districts. Last week, the Central Highlands province of Dak Lak also exported its first batch of this fruit to China, according to VNA.

Photo: Nhip song Doanh nghiep

Weather Forecast

September 22: According to the National Center for Hydro-meteorological Forecasting, from September 21 to 22, showers and thunderstorms will occur in the Northern region. Heavy rain will appear in some places with a rainfall of 20-40mm/24h. Particularly, the coastal areas, the Northern Delta, and the North Central Coast will have moderate to heavy rainwith a common rainfall of 70-150mm.

The forecasting center has announced a thunderstorm warning in the Northern region, which is likely to last until September 23-24.