Economic news review January 17

The central exchange rate increased by 30 VND, the VN-Index decreased slightly by 0.59 points, or deposits of residents and economic organizations by the end of 2023 reached more than 13.5 million billion VND... are some notable economic information on January 17.

Economic news review January 15 Economic news review January 16

Economic news review

Domestic news

In the foreign exchange market on January 17, the State Bank listed the central exchange rate at 24,017 VND/USD, a sharp increase of 30 VND compared to the previous session.

The USD buying price was kept unchanged at 23,400 VND/USD by the State Bank of Vietnam, while the USD selling price was listed at 25,167 VND/USD, 50 VND lower than the ceiling exchange rate.

On the interbank market, the dollar-dong exchange rate closed at 24,540 VND/USD, down slightly by 5 VND compared to the session on January 16.

The dollar-dong exchange rate on the free market increased by 10 VND in both buying and selling directions, trading at 24,880 VND/USD and 24,980 VND/USD.

On January 17, the average interbank VND interest rate remained unchanged for short terms while increasing by 0.01 - 0.03 percentage points for 2-week and 1-month terms compared to the previous session, specifically: overnight 0.20%; 1 week 0.30%; 2 weeks 0.58% and 1 month 1.28%.

The average interbank USD interest rate increased by 0.01 - 0.04 percentage points at all terms, trading at: overnight 5.11%; 1 week 5.23%; 2 weeks 5.31%, 1 month 5.39%.

Government bond yields in the secondary market decreased for 3-year and 5-year terms while increasing for the remaining terms; closing at: 3-year 1.20%; 5-year 1.41%; 7-year 1.81%; 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.

On the bond market on January 17, the State Treasury successfully mobilized VND3,319 billion/VND8,250 billion of government bonds called for bid, with a winning rate of 40%. Of which, the 5-year term mobilized VND1,016 billion/VND1,500 billion; the 10-year term mobilized VND786 billion/VND3,000 billion; the 15-year term mobilized VND967 billion/VND3,000 billion called for bid and the 30-year term mobilized VND550 billion/VND750 billion called for bid. The issuance interest rate for the 5-year term was 1.39% (-0.11 percentage points compared to the previous session), the 10-year term was 2.20% (-0.05 percentage points), the 15-year term was 2.40% (+0.05 percentage points) and the 30-year term was 2.85% (-0.15 percentage points).

The stock market increased from the opening yesterday but retreated at the end of the session. At the end of the trading session, VN-Index decreased slightly by 0.59 points (-0.05%) to 1,162.53 points; HNX-Index closed at the reference level of 229.5 points; UPCoM-Index lost 0.06 points (-0.07%) to 86.96 points. Market liquidity improved with a trading value of nearly VND 18,500 billion. Foreign investors continued to net buy more than VND 43 billion on all three exchanges.

According to the State Bank of Vietnam, deposits from residents and economic organizations by the end of 2023 reached more than VND 13.5 million billion (up 13.2% compared to the end of 2022), the highest level in the history of the banking industry. In general, in 2023, deposits from residents and economic organizations increased by VND 1.68 million billion - the highest increase ever, and it is estimated that in the fourth quarter alone, it increased by over VND 800,000 billion.

International News

Core and total retail sales in the US rose 0.4% and 0.6% month-over-month in December, following increases of 0.2% and 0.3% in the previous month, and both larger than the 0.2% and 0.4% increases expected. As a result, core retail sales in the country increased 4.9% in 2023.

The UK Office for National Statistics announced that the headline CPI and core CPI in the UK increased by 4.0% and 5.1% respectively compared to the same period in December, unchanged from the previous month's 3.9% and 5.1%, and also contrary to expectations of cooling to 3.8% and 4.9%.

The Chinese government announced that the country's GDP grew 5.2% year-on-year in the last quarter of 2023, higher than the 4.9% increase in the third quarter but still slightly lower than the forecast of 5.3%. Accordingly, China's GDP grew 5.2% in 2023, higher than the 5% target set by the National People's Congress.

Next, China's manufacturing output rose 6.8% year-on-year in December, up from November's 6.6% gain and matching forecasts.

Finally, retail sales in this market increased by only 7.4% year-on-year in December, much lower than the 10.1% increase in November and also lower than the expected 8.1% increase. China's National People's Congress is likely to announce the 2024 growth target in March 2024.

According to World Bank forecast, China's GDP may slow down, growing only 4.5% this year due to many multi-dimensional challenges.

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