Vietnam Market watch for September 7, 2023


The Center for Economic Research – Vietnam Maritime Commercial Joint Stock Bank (Maritime Bank) is pleased to introduce to you the Economic and Financial Newsletter for September 7, 2023.

NHNN Central Exchange Rate Increases to 23,991 VND/USD

In the trading session on September 6th, the State Bank of Vietnam (SBV) listed the central exchange rate at 23,991 VND/USD, marking an increase of 32 dong compared to the previous session. The spot buying rate remained unchanged at 23,400 VND/USD, while the spot selling rate was listed at 25,140 VND/USD, which is 50 dong lower than the ceiling exchange rate. On the Interbank Foreign Exchange Market (IFEM), the closing exchange rate settled at 24,046 VND/USD, decreasing by an additional 09 dong compared to the trading session on September 5th. The free market exchange rate decreased by 20 dong on both the buying and selling sides, trading at 24,100 VND/USD and 24,180 VND/USD, respectively.

Currency Market in the Interbank Market: Mild Fluctuations in Average Interest Rates

On September 6th, the average interest rates in the Vietnamese Interbank Market (VND) decreased by 0.01 to 0.02 percentage points (ppt) for the ON (overnight) and 2W (2-week) terms, while they remained unchanged for the 1W (1-week) and 1M (1-month) terms compared to the previous session. Specifically, the average interest rates for various terms were as follows: ON 0.20%, 1W 0.42%, 2W 0.58%, and 1M 1.42%. Meanwhile, the average interest rates in the Interbank Market for USD increased by 0.01 to 0.02 ppt for the short terms, with rates at ON 5.06%, 1W 5.18%, 2W 5.26%, and 1M 5.36%. Government bond yields in the secondary market remained unchanged for the 3Y (3-year) term but increased for the other terms, with rates at 3Y 1.72%, 5Y 1.83%, 7Y 2.27%, 10Y 2.58%, and 15Y 2.78%.

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Open Market Operations: SBV Maintains Bid Interest Rate

In recent trading sessions on the collateral channel, SBV continued to maintain the bid interest rate at 4.0% with a 7-day term, and there were no successful bids. There was no outstanding amount on the collateral channel, and SBV continued not to bid for treasury bills.

Bond Market: SBV Successfully Raises Funds for the 5-Year Term

In the trading session on September 6th, the State Treasury successfully raised 3,935 billion VND of government bonds, reaching 98% of the 4,000 billion VND offer. Specifically, the entire 500 billion VND for the 5-year term was successfully raised, and the 10-year and 15-year terms both raised the entire 1,500 billion VND for each term, while the 30-year term raised 435 billion VND out of the total offer of 500 billion VND. The winning bid interest rates for the respective terms were 5Y 1.69% (-0.05 ppt), 10Y 2.36% (unchanged), 15Y 2.59% (unchanged), and 30Y 3.05% (unchanged).

Stock Market: VN-Index Shows Strong Growth

The stock market continued to show positive developments in recent trading sessions. At the close of the session, the VN-Index gained an additional 10.52 points (+0.85%) to reach 1,245.50 points, while the HNX-Index increased by 3.08 points (+1.22%) to reach 255.36 points, and the UpCOM-Index added 0.27 points (+0.29%) to reach 94.56 points. Market liquidity improved with a trading value of over 28,500 billion VND. Foreign investors were net sellers with a value of approximately 67 billion VND across all three exchanges.

International News

U.S. Service Sector PMI Reaches Highest Level Since February 2023

According to the Institute for Supply Management (ISM), the U.S. service sector Purchasing Managers’ Index (PMI) reached 54.5% in August, rising from July’s 52.7% and surpassing the forecasted 52.5%. This marks the highest service sector PMI in the U.S. since February 2023.

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Eurozone Retail Sales Show Slight Decline in July

Eurozone retail sales experienced a slight decline of 0.2% compared to the previous month in July, following a 0.2% increase in the previous month, closely matching the forecasted 0.1% decrease. Year-on-year, retail sales in the Eurozone still showed a 1.0% decline. Meanwhile, the EU region recorded a 0.3% decline compared to the previous month and a 1.2% decline year-on-year in July.

Steady Growth in Australia’s GDP in Q2

The Australian Bureau of Statistics announced that Australia’s GDP increased by 0.4% compared to the previous quarter in Q2, which is consistent with the growth rate in the previous quarter (Q1 GDP was revised from 0.2% to 0.4% quarter-on-quarter), and aligns with experts’ forecasts. Year-on-year, Australia’s GDP grew by 2.1%.

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