Economic news review May 7

Economic news review

Domestic news

In the foreign exchange market on May 7, the State Bank listed the central exchange rate at 24,930 VND/USD, down 8 VND compared to the previous session.

The USD buying price is listed at 23,734 VND/USD, 50 VND higher than the floor rate; while the USD selling price is listed at 26,126 VND/USD, 50 VND lower than the ceiling rate.

On the interbank market, the dollar-dong exchange rate closed at 25,955 VND/USD, down 7 VND compared to the session on May 6.

The dollar-dong exchange rate on the free market decreased by 30 VND in both buying and selling directions, trading at 26,400 VND/USD and 26,500 VND/USD.

On May 7, the interbank money market, the average interbank VND interest rate decreased by 0.04 - 0.10 percentage points for all terms of 1 month or less compared to the previous session, specifically: overnight 4.08%; 1 week 4.30%; 2 weeks 4.40% and 1 month 4.52%. The average interbank USD interest rate remained unchanged for short terms while increasing by 0.01 percentage point for the 1-month term, trading at: overnight 4.30%; 1 week 4.37%; 2 weeks 4.43%, 1 month 4.48%.

Government bond yields in the secondary market fluctuated slightly, closing at: 3-year 2.19%; 5-year 2.44%; 7-year 2.77%; 10-year 3.07%; 15-year 3.22%.

Yesterday, in the open market operations, on the mortgage channel, the State Bank offered VND10,000 billion for a 7-day term, VND10,000 billion for a 14-day term, VND5,000 billion for a 35-day term and VND3,000 billion for a 91-day term, with interest rates all at 4.0%. There were VND3,018.46 billion in winning bids for the 7-day and 14-day terms; there was no winning bid volume for the remaining terms. There were VND6,021.65 billion maturing. The State Bank did not offer SBV bills.

Thus, the State Bank of Vietnam net withdrew VND3,003.19 billion from the market through open market operations yesterday. There were VND83,512.57 billion circulating in the mortgage channel.

On the bond market on May 7, the State Treasury successfully bid for VND1,283 billion/VND10,500 billion of government bonds called for bid, with a winning rate of only 12%. Of which, the 5-year term mobilized VND1,000 billion/VND2,000 billion called for bid, the 10-year term mobilized VND200 billion/VND7,000 billion called for bid, the 15-year term mobilized VND35 billion/VND1,000 billion called for bid and the 30-year term mobilized VND48 billion/VND500 billion. The winning interest rate for the 5-year term was 2.36% (+0.21 percentage points compared to the previous auction), the 10-year term was 3.05% (+0.05 percentage points), the 15-year term was 3.10% (+0.02 percentage points) and the 30-year term was 3.28% (unchanged).

Yesterday, after a volatile morning session, the stock market indices broke out in the afternoon session, especially real estate and energy stocks. At the end of the session, VN-Index increased by 8.42 points (+0.68%) to 1,250.37 points; HNX-Index increased by 0.52 points (+0.24%) to 213.41 points; UPCoM-Index decreased by 0.02 points (-0.02%) to 92.92 points. Market liquidity decreased slightly with a trading value of over VND16,700 billion. Foreign investors net bought more than VND896 billion on all three exchanges.

According to the Foreign Investment Agency ( Ministry of Finance ), as of April 30, 2025, the total registered foreign investment capital in Vietnam reached 13.82 billion USD, an increase of 39.9% over the same period last year. Of which, 1,204 new projects were licensed, an increase of 14.1% in quantity, but the total registered capital decreased by 23.8% over the same period, reaching only 5.59 billion USD. There were 540 existing projects registered to increase capital by 6.40 billion USD, 3.9 times higher than the same period in 2024. There were 1,106 capital contributions and share purchases by foreign investors with a total capital contribution value of 1.83 billion USD, double the same period last year. FDI capital realized in the first 4 months of the year is estimated at 6.74 billion USD, an increase of 7.3% over the same period.

International News

The US Federal Reserve (Fed) decided to keep its policy interest rate at the current level and warned of increasing risks to its inflation and labor market goals. On May 7, after a two-day policy meeting, the Fed decided to keep its policy interest rate unchanged at 4.25 - 4.5%.

The Fed said the economy continued to grow solidly overall, with GDP falling in the first quarter as businesses and households increased imports to avoid new tariffs. The Fed also assessed that the labor market remained strong and inflation was "high." However, the statement emphasized that new risks were emerging that could force the Fed to make difficult choices in the near future. The economic outlook is increasingly uncertain, trade policy continues to be a source of uncertainty, and inflation and unemployment risks are rising.

The Federal Open Market Committee (FOMC) is closely monitoring the situation. Fed Chairman Jerome Powell also said that the current policy stance allows the Fed to respond promptly to economic developments.

New orders in the German manufacturing sector rose 3.6% month-on-month in March after remaining flat in the previous month, beating expectations of a 1.4% increase, according to the German Federal Statistical Office (Destatis). The main contributors to the increase last month were electronic components (+14.5%), machinery and parts (+5.3%), transport equipment (+13.0%), the automotive industry (+2.5%), and pharmaceuticals (+17.3%). New orders from abroad increased by 4.7%, mainly from countries in the Eurozone; domestic orders increased by 2.0%. However, compared to the fourth quarter of 2024, the number of orders in the first quarter of 2025 was still down 2.3%.

The UK construction PMI showed a slight increase from 46.4 in March to 46.6 in April, according to the S&P Global survey. Despite this small improvement and a better-than-expected reading of 46.0, the index remained below the key 50 threshold that separates growth from contraction. This continued contraction highlights the difficulties facing the UK economy, particularly in the construction sector.

Source: https://thoibaonganhang.vn/diem-lai-thong-tin-kinh-te-ngay-75-163846-163846.html