Economic news review January 10

The central exchange rate decreased by 3 VND, the VN-Index increased by 2.95 points, or the scale of public debt by the end of 2023 was about 37% of GDP, much lower than the ceiling of 60% set by the National Assembly... are some notable economic news on January 10.

Review of economic information for the week of January 2-5 Review of economic information for January 9

Economic information review

Domestic news

In the foreign exchange market on January 10, the State Bank listed the central exchange rate at 23,928 VND/USD, down 3 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 25,074 VND/USD, 50 VND lower than the ceiling exchange rate.

On the interbank market, the dollar-dong exchange rate closed at 24,415 VND/USD, up 52 VND compared to the session on January 9.

The dollar-dong exchange rate on the free market increased by 20 VND in both buying and selling directions, trading at 24,750 VND/USD and 24,850 VND/USD.

On January 10, the average interbank VND interest rate remained unchanged in most terms, except for an increase of 0.07 percentage points in the 1-month term compared to the previous session, specifically: overnight 0.20%; 1 week 0.30%; 2 weeks 0.53% and 1 month 1.22%.

The average interbank USD interest rate increased by 0.01 - 0.05 percentage points at all terms, trading at: overnight 5.08%; 1 week 5.23%; 2 weeks 5.30%, 1 month 5.39%.

Government bond yields in the secondary market decreased across all maturities, closing at: 3-year 1.52%; 5-year 1.52%; 7-year 1.81%; 10-year 2.20%; 15-year 2.39%.

Yesterday, in the open market operation, on the mortgage channel, the State Bank offered 1,000 billion VND for a 7-day term, the interest rate remained at 4.0%. There was no winning bid, only 1.04 billion VND circulating on this channel. The State Bank did not offer SBV bills and there was no bill volume circulating on the market.

On January 10, the State Treasury successfully mobilized 5,939 billion VND/7,250 billion VND of government bonds offered for bidding, with a winning rate of 82%. Of which, the 5-year and 10-year terms mobilized the entire 750 billion VND and 3,000 billion VND offered for bidding, respectively; the 15-year term mobilized 2,189 billion VND/3,000 billion VND offered for bidding. The 30-year term called for 500 billion VND but the bidding failed. The issuance interest rate for the 5-year term was 1.50% (-0.08 percentage points compared to the previous session), the 10-year term was 2.15% (-0.05 percentage points) and the 15-year term was 2.35% (-0.05 percentage points).

The stock market had a mixed session yesterday, VN-Index maintained its green color thanks to the group of banking stocks pulling the pillar. At the end of the trading session, VN-Index increased by 2.95 points (+0.25%) to 1,161.54 points; HNX-Index lost 1.09 points (-0.47%) to 231.41 points; UPCoM-Index decreased by 0.57 points (-0.65%) to 87.15 points. Market liquidity increased compared to the previous session with a trading value of over VND 23,000 billion. Foreign investors net sold nearly VND 325 billion on all 3 exchanges.

According to the Ministry of Finance , the scale of public debt by the end of 2023 is about 37% of GDP, much lower than the ceiling of 60% set by the National Assembly. Government debt is about 34% of GDP, lower than the ceiling of 50%. This outstanding debt level is also much lower than the average level in 2023 of BB-rated countries at 52.8% and BBB at 54.9% of GDP.

Domestic debt increased, accounting for about 71% of government debt, mainly government bonds. The average issuance term of government bonds is about 12.4-12.5 years, ensuring the target of 9-11 years according to Resolution No. 23/2021/QH15 of the National Assembly on the National Financial Plan and public debt repayment for the period 2021-2025. The average issuance interest rate of the entire government bond portfolio in 2023 is about 3.3%/year, down 0.18 percentage points compared to the level in 2022.

International news

The Australian Bureau of Statistics (ABS) said the headline consumer price index (CPI) in the country increased 4.3% year-on-year in November, slowing from 4.9% in the previous month and lower than the forecast increase of 4.4%. This is the lowest increase of Australian CPI in nearly 2 years, since April 2021.

The Japanese government announced that the average income in the country increased only 0.2% compared to the same period in November, slowing down significantly compared to the expectation of maintaining at 1.5% as the statistical results in October.

Even so, basic wages rose 1.2% year-on-year in November, only slowing slightly from 1.3% in the previous month. Compared with Japan’s inflation rate of over 2%, real incomes fell for the 20th consecutive month, weighing on household spending.

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