Vietnam’s 1st Half Economic Report Year 2024 by Bangkok Bank

BRIEF ECONOMIC SITUATION

– Vietnam’s economic growth advanced notably 6.42% in first six months of the year
– Average consumer price index (CPI) accelerated by 4.08% year-on-year in H1
– Vietnam’s index of Industrial production index (IIP) expanded 7.7% in six months.
– Vietnam’s trade surplus is foreseen at US$11.63 billion in H1 2024
– FDI disbursement in six months of 2024 went up 8.2% to US$10.84 billion.
– H1’s revenue of retail sales of goods and services surged 8.6% to VND3,098.7 trillion

FOREIGN EXCHANGE MARKET
– USD/VND exchange rate increased in the early of January then slightly decreased before Tet Holiday.
– Dollar/dong exchange rate soared up in the rest of Q1
– DXY stayed at the high levels in April-June period when Fed hold policy rate during the first half of 2024.
– USD/VND exchange rate has been under upward pressure in Q2
– Dollar/dong hit ceiling rate in mid-Apr. SBV decided to sell USD at 25,450 for spot value to support market’s liquidity.
– Dong depreciated around 4.84% against greenback to closed H1.

MONEY MARKET
-The local money market witnessed a volatility of VND interest rates in the first quarter then upward trend in the second one.
– Market witnessed upward trend of VND interest rates in Q2.
– SBV actively used OMO tools to reinforce liquidity, balancing fund supply and demand in the money market.
– Credit growth was pretty low at 4.45% in H1-2024
– VST raised VND156.5Trio via bond issuance in H1-2024

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