Boiling point under pressure

A customer at an HDBank transaction office. Viet Nam’s policy rate is expected to rise 50 basis points to 4.5 per cent by end-2023. — VNA/VNS Photo Capital account restrictions largely insulate interest rates in Viet Nam from global monetary tightening and the country’s policy rate is expected to rise 50 basis points to 4.5 per cent by end-2023, according to Fitch Ratings. Under a report on the impact of rising interest rates on Asia-Pacific (APAC) banks released this week, Fitch said annual credit targeting remains a centrepiece of the State Bank of Vietnam's (SBV) monetary policy framework, and the refinancing rate is not a primary policy lever. Moreover, strong foreign investment inflows underpin the dong's resilience, which has depreciated by only 2 per cent year-to-date by end-July 2022, making it the second-best performing currency in APAC behind only the Hong Kong dollar. According to Fitch, Viet Nam’s rates are driven chiefly by economic activity and inflation. … [Read more...] about Monetary stance points to only mildly higher interest rates in Viet Nam: Fitch Ratings

The S&P Global Vietnam Manufacturing Purchasing Managers' Index remained above the 50.0 point no-change mark for the tenth successive month in July, signalling a further strengthening of business conditions. That said, at 51.2 points – down from 54.0 points in June – the index signalled a less significant improvement. New orders increased for the tenth month running, but the rate of expansion eased to its weakest point since April. Meanwhile, new export business rose solidly and at a faster pace than total new orders. The continued growth of new orders encouraged manufacturers to keep expanding production in July. Output rose for the fourth successive month. However, the rate of expansion was only marginal and the softest in the current growth sequence amidst signs of lower demand, shipping difficulties, and pricing pressure. There were signs, however, of price and supply pressures easing at the start of the third quarter. In terms of prices, the rate of input cost … [Read more...] about Manufacturing output continues to rise amidst signs of slowing growth

A trader observing the market's movements on his computer. — Photo baodautu.vn After hitting a bottom of around 1,140 points in early July, the stock market had recovered for four straight sessions, with the benchmark VN-Index surpassing the threshold of 1,250 points. Notably, liquidity improved significantly last week and has now exceeded the recent 20-week average. This marked the second week of such an increase, showing that investors' interest is improving. On the Ho Chi Minh Stock Exchange (HoSE), the VN-Index ended the week at 1,252.74 points, down 0.11 per cent. Meanwhile, the HNX-Index on the Ha Noi Stock Exchange (HNX) closed higher, up 0.73 per cent to 299.9 points. For the week, the VN-Index rose by 3.85 per cent and the HNX-Index was up 3.91 per cent. Trading value on HOSE increased by 39.2 per cent from the previous week to VND83.1 trillion (US$3.5 billion), equivalent to a gain of 47 per cent in volume to more than 3.5 billion shares. On the northern bourse, … [Read more...] about Investors’ risk appetite continues to improve this week

Thanh Cong Textile Garment Investment Trading JSC exported over one-third of its products to the United States in 2021. However, the company started to face challenges following the US’ blanket ban on all Xinjiang cotton. Last year, President Joe Biden signed into law the Uyghur Forced Labor Prevention Act. Vietnam’s cotton imports reach up to one million tonnes each year, Photo: Shutterstock Tran Nhu Tung, chairman of the company, said that the company has adopted regulations this year related to this act. Accordingly, buyers have to be responsible for export orders to the US which source Chinese cotton materials. Thanh Cong secures many large orders from the US. In 2022, the company sets a target to generate $179 million in revenues and $10.87 million in profit, up 120 per cent and 188 per cent respectively against last year. Tung noted that yarn exports are the main driving force for Thanh Cong. “There is a rapidly growing demand for yarn imports in the global … [Read more...] about Demand for cotton forces adjustments

MANCHESTER, England -- New manager Erik ten Hag saw the depth of the crisis at Manchester United when his side fell to a 2-1 Premier League defeat by Brighton & Hove Albion at Old Trafford on Sunday, with German Pascal Gross scoring twice. United fans' hopes that the off-season would mark a turning point have faded, with the club failing to make major moves yet in the transfer market and there was a grim familiarity to the club's opening match. The former Ajax coach witnessed a performance that was every bit as disjointed as those produced under his predecessors Ralf Rangnick and Ole Gunnar Solskjaer last season. The sense that this was a continuation of last year's decline began before kick-off where there were yet more loud and angry protests against United's owners, the American Glazer family, under the South Stand If that felt familiar, then the sight of Scott McTominay and Fred in midfield as United laboured against Graham Potter's superbly drilled side was verging on … [Read more...] about Ten Hag era at United begins with defeat to Brighton