A recent report from S&P Global indicates that manufacturing activity across Asia grew in December, though optimism has waned and new export orders remain subdued, weighing on the outlook. The ASEAN region showed clear signs of weakening in its manufacturing sector, with surveyed business confidence dropping to an eight-month low. Prospects in South Korea turned more negative in December as output declined further amid reduced new orders. For the first time since the Covid-19 pandemic, South Korean firms anticipate a negative production outlook for 2025. Forecasts suggest that manufacturing activity in South Korea, Taiwan, and Vietnam may outperform other countries in the region, buoyed by robust global demand for AI-related hardware. Nevertheless, concerns over global economic uncertainties and potential U.S trade protection policies could continue to pressure export-oriented industries in Asia through 2025. In China, new orders rose for a third straight month in December, but optimism dipped due to worries about the pace of economic recovery and trade conflicts with the U.S. Meanwhile, large export orders in China may reflect front-loading of shipments in anticipation of potential new tariffs.
The USD Index surged 0,77% to a two-year high of 109,38 on the first trading day of 2025, accompanied by optimism surrounding U.S economic growth. Data released last night confirmed stability in the U.S labor market, with jobless claims reaching an eight-month low last week. Domestically, the USD/VND exchange rate retreated to 25.460 yesterday, partly due to subdued demand for foreign currency on the first trading day of the year. The SBV’s USD selling price of 25.450 remains a critical threshold for the market at this juncture.
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Directly contact us to receive market news and consultancy on foreign exchange products and derivatives:
- Financial Markets Division – Email: ktttc@acb.com.vn ; or
- Mr. Khanh Hoang (Financial Markets Senior Analyst) – Email: hoangnk@acb.com.vn
