Economic news review January 16

The central exchange rate decreased by 5 VND, the VN-Index increased by 9.0 points, and the World Bank forecasted that remittances to Vietnam in 2024 will reach 14.4 billion USD... are some notable economic news on January 16.

Review of economic information for the week of January 8-12 Review of economic information for January 15

Economic news review

Domestic news

In the foreign exchange market on January 16, the State Bank listed the central exchange rate at 23,987 VND/USD, down slightly by 5 VND compared to the first session of the week.

The State Bank of Vietnam kept the USD buying price listed at 23,400 VND/USD, while the USD selling price was listed at 25,136 VND/USD, 50 VND lower than the ceiling exchange rate.

On the interbank market, the dollar-dong exchange rate closed at 24,545 VND/USD, a sharp increase of 73 VND compared to the session on January 15.

The dollar-dong exchange rate on the free market remained unchanged in both buying and selling directions, trading at 24,870 VND/USD and 24,970 VND/USD.

On January 16, the average interbank VND interest rate remained unchanged for short terms while decreasing by 0.01 - 0.02 percentage points for 2-week and 1-month terms compared to the first session of the week, specifically: overnight 0.20%; 1 week 0.30%; 2 weeks 0.55% and 1 month 1.27%.

The average interbank USD interest rate decreased by 0.02 - 0.03 percentage points at all terms, trading at: overnight 5.07%; 1 week 5.19%; 2 weeks 5.28%, 1 month 5.38%.

Government bond yields in the secondary market decreased in short terms while remaining unchanged in 15-year terms, closing at: 3-year 1.24%; 5-year 1.41%; 7-year 1.80%; 10-year 2.22%; 15-year 2.43%.

Yesterday's open market operations, on the mortgage channel, the State Bank of Vietnam offered VND1,000 billion for a 7-day term, the interest rate remained at 4.0%. There was no winning bid volume, no circulating volume on this channel. The State Bank of Vietnam did not offer SBV bills and there was also no circulating volume of bills on the market.

In contrast to the previous session, yesterday's session, the gloomy color of the morning session was replaced by green at the end of the session. At the end of the trading session, VN-Index increased by 9.0 points (+0.78%) to 1,163.12 points; HNX-Index added 1.95 points (+0.86%) to 229.50 points; UPCoM-Index increased by 0.41 points (+0.47%) to 87.02 points. Market liquidity was similar to the previous session with a trading value of nearly VND 14,400 billion. Foreign investors continued to net buy more than VND 141 billion on all 3 floors.

According to the World Bank (WB), remittances to Vietnam in 2023 will be at 14 billion USD. WB forecasts that remittances to Vietnam will continue to increase, reaching 14.4 billion USD in 2024. In the past 10 years, despite being affected by the global economy, remittances to Vietnam have decreased in some years following the general trend of other countries, but it still maintains its position in the top 10 countries with the largest remittances in the world and in the top 3 countries receiving the most remittances in the Asia- Pacific region.

International News

The UK labour market recorded some notable indicators. First, the number of unemployment benefit applications in the UK increased by 11.3 thousand in December after a slight increase of 0.6 thousand in the previous month, but this was still lower than the forecast increase of 18.1 thousand. In addition, the unemployment rate in this country last month was flat at 4.2%, unchanged from the result in November.

Finally, UK average earnings grew by 6.5% year-on-year in October-December 2023, down from 7.2% in September-November 2023 and also below the forecast 6.8%.

The ZEW survey said the Eurozone economic sentiment index stood at 22.7 points in January, down slightly from 23.0 points in the previous month, but still higher than the forecast of 20.2 points. In Germany in particular, the economic sentiment index reached 15.2 points in January, up from 12.8 points in the previous month, contrary to the forecast of a drop to 11.6 points.

Westpac said its consumer confidence index fell 1.3% month-on-month in January after rising 2.7% in the previous month, to 81.0, a very low level that is only comparable to the lows seen in 2008 or 2020.

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