Inflation

It expected Vietnam’s inflation at 3.7 percent in the latest report, up 0.7 percentage point compared to the previous forecast published February. However, Vietnam’s inflation is unlikely to be a big concern this year as it will likely remain well below the 4 percent inflation target of the State Bank of Vietnam, the lender said. Compared to rising inflation in parts of Southeast Asia, Vietnam’s inflationary risk is among the lower end of the group, it added. According to the General Statistic Office, the four-month consumer price index rose by 2.1 percent compared to 0.89 percent over the same period last year. Transport and food, two categories used in calculating CPI, fell in April thanks to declining oil and domestic agriculture product prices between March and April. Education and housing & construction material rose, mirroring higher tuition fees after a period of Covid-19 discounts and rising rent prices after workers return to cities. But the bank also warned of … [Read more...] about Vietnam to meet inflation target in 2022: HSBC

Gold is yet again becoming a safe haven asset, and some customers want more ways to get involved, Le Toan The World Gold Council (WGC) believes that the appetite for gold is often hampered by the interest rate, as when interest rates rise, gold loses its appeal. However, inflation is also a tailwind to gold demand as a common safe-haven asset. The USD tends to weaken when the Fed raises interest rates, which enhances gold’s demand. “Furthermore, what happens in China’s consumer market has had a big impact as it’s the world’s largest consumer market for gold. We expect China to start to emerge from the worst of the pandemic and that will support consumer demand,” the WGC noted last week. “It is difficult to predict how the geopolitical situation will play out. It depends on where inflation goes, but inflation is certainly the biggest driver at the moment, which will probably support institutional investment demand in the next quarter.” Meanwhile, the demand for gold in Vietnam … [Read more...] about Gold appeal sparkles amid rise of inflation

Japan's core consumer prices posted their biggest jump in seven years in April, official data showed Friday, as global commodity prices soared and the yen slumped against the dollar. The core consumer price index, which excludes fresh food, jumped 2.1 percent year-on-year, according to figures released by the internal affairs ministry. It was the first time since March 2015 that the figure has breached the 2.0 percent set by the Bank of Japan as its long-term inflation target. The reading, against market expectations of 2.0 percent, is the eighth consecutive monthly increase following a 0.8 percent rise in March. And excluding energy, prices were up 0.8 percent in April, against market expectations of a 0.7 percent rise. That was the first positive figure since July 2020, underpinning the impact of skyrocketing energy costs which have been magnified by higher import prices. After years of price stagnation, some manufacturers and stores in Japan who rely on imported … [Read more...] about Japan inflation hits seven-year high

Vietnam continues to benefit from its broad re-opening strategy, which saw a huge crowd flocking to tourist hotspots in the country and household spending rebound. Vietnam’s economic recovery is gaining momentum despite heightened global uncertainty related to the protracted war in Ukraine, higher commodity prices, and tightening global financial conditions, according to the World Bank. Cargo handling at Dinh Vu port, Haiphong. Photo: Cong Hung In its latest report, the World Bank pointed out the robust growth of industrial production by 9.4% in April, comparable to pre-pandemic rates. Manufactures of apparel, footwear, electronics, electrical equipment, and metal products were the most dynamic sub-sectors, registering double-digit growth rates, it added. However, machinery manufacturing slowed from 26.6% year-on-year in March to only 5.1% in April. This deceleration was related to supply chain disruptions caused by lockdowns in China, which led to a … [Read more...] about Vietnam’s economic recovery gaining momentum

A customer makes a deposit at a bank in Binh Duong Province. — VNS Photo Many banks have increased deposit interest rates by 0.1-0.6 percentage points amid the growing demand for funds. Last year the average interest rates on bank deposits for six months and 12 months were 4.7 per cent and 5.5 per cent, down half a percentage point from 2020, Bảo Viẹt Securities said. The State Bank of Viet Nam said in 2021 rates were at their lowest level in five years. But rates, especially at small- and medium-sized banks, have increased sharply since the beginning of this month. Currently the peak rates are 6.5-7.4 per cent. NamABank offers the highest rate for online savings even for small amounts. Customers depositing money via its e-banking application for 16-36 months can get 7.4 per cent interest. For 12 months it is 6.4 per cent. Sai Gon – Ha Noi Commercial Joint Stock Bank (SHB) has increased rates by 0.2-0.4 percentage points. For 36 months the rate is 0.4 percentage … [Read more...] about Banks hike deposit interest rates on demand for funds, inflation

The rise in consumer prices is making it harder for the Bank of Japan (BOJ) to convince markets it will keep monetary policy ultra-loose and as the gains fuel public concerns about pushing up living costs. The nationwide core consumer price index (CPI), which excludes volatile fresh food costs but includes those of energy, surged 2.1% in April from a year earlier, government data showed on Friday. That marked the fastest rise in a single month since March 2015 and matched the median forecast in a Reuters poll. The gain was much stronger than a 0.8% year-on-year rise in March, as the impact of mobile phone fee cuts from April last year that have pulled down overall CPI since then starts to fade from yearly comparisons. The overall rate of price increases in Japan has remained modest compared with much sharper rises in the United States and other advanced economies, as sluggish wage growth in the world's third-largest economy makes it harder for firms to raise prices. The BOJ … [Read more...] about Japan April consumer prices post biggest jump in over 7 years

Hanoi’s economy is recovering Major balances ensured According to a report by the Hanoi People’s Committee, key industries are gradually recovering and developing from the impact of the COVID-19 pandemic. Hanoi’s gross domestic product in the first quarter of 2022 increased by 5.83 percent, 16 percent higher than the country average (5.03 percent), three times higher than that of Ho Chi Minh City (1.88 percent), achieving the quarterly growth forecast (5.7-6.2 percent). These figures reflect the growth momentum in many industries and fields. Many major balances have been ensured. The total state budget revenue of Hanoi in the first quarter of 2022 exceeded VND102.40 trillion, or 80.2 percent of the revenue estimate, representing a rise of 9.2 percent against the same period last year. Regarding investment capital disbursement, Hanoi disbursed more than VND4.11 trillion, reaching eight percent of the plan (up by 26.7 percent over the same period last year) as of March … [Read more...] about Hanoi makes strides in economic recovery

Hanoi, (VNA) – The following is a brief review of the day’s events as reported by the Vietnam News Agency on May 13. -President Nguyen Xuan Phuc hosted visiting Secretary of the Lao People’s Revolutionary Party (LPRP)’s Central Committee and President of the Lao People’s Supreme Court Viengthong Siphandone in Hanoi on May 13. President Phuc affirmed that the Party, State and people of Vietnam always attach great importance to preserving and developing the special Vietnam-Laos ties, including the cooperation between the two Supreme People’s Courts. Read full story - Prime Minister Pham Minh Chinh and leaders of other ASEAN countries had a working lunch with US lawmakers in Washington D.C. on May 12 (local times), ahead of the ASEAN-US Special Summit. Participants discussed issues related to cooperation in trade, investment, people-to-people exchange, science-technology, renewable energy development, and the response to security challenges in the region and the world. Read … [Read more...] about ☕ Afternoon briefing on May 13

MPI Deputy Minister Tran Quoc Phuong expects a strong recovery of the economy GDP growth in the first quarter was estimated at 5 per cent on-year. Inflation was controlled and the consumer price index in the first four months increased by 2.1 per cent. Vietnam's Business Climate Index by EuroCham has risen to 73 percentage points, an increase of 12 points over the last quarter of 2021, which is the highest since the fourth wave of the pandemic, showing that business executives are upbeat as the country opens up. The number of newly-established enterprises in the first four months hit almost 50,000. Analysing the impact of the world's economic movement on Vietnam, economist Can Van Luc pointed out the forecast of two GDP growth scenarios for the coming years. In the first one, the GDP growth of Vietnam will raise by 5.5-6 per cent, while in the negative scenario, it will be 4.5-5 per cent. Which occurs will be dependent on the process of pandemic prevention, socioeconomic … [Read more...] about Specific solutions needed for a strong recovery

Speaking at the closing ceremony, N.A. Chairman Vuong Dinh Hue asked relevant agencies to urgently collect opinions of the N.A. Standing Committee to finalise reports, and submit them to the 15th N.A. at its upcoming third meeting. He noted that the draft laws expected to be submitted to the N.A. for approval at the 3rd meeting have been basically completed. Projects submitted to the N.A. for comment for the first time have also been prepared carefully; therefore, the N.A.’s agencies and related units need to focus on making careful preparations for the 3rd meeting. During the 11th session, the N.A. Standing Committee approved a Resolution on the establishment of Phuong Son township in Luc Nam district and Bac Ly township in Hiep Hoa district in the northern province of Bac Giang. N.A. Chairman Hue requested relevant agencies to urgently finalize the draft resolution for early signing and issuance. Regarding the central budget allocation plan in the 2021 - 2025 period and … [Read more...] about N.A. Standing Committee’s 11th session wraps up