Market Highlight 05.11.2024

According to the latest data from the General Department of Vietnam Customs, the nation’s trade balance in goods saw a surplus of +1,99 billion USD in October. Total import-export turnover reached 69,19 billion USD, up 5,1% (or +3,35 billion USD) from the previous month. Over the first 10 months, Vietnam’s exports totaled 335,59 billion USD, up 14,9% (+43,54 billion USD), while imports reached 312,28 billion USD, up 16,8% (+45,03 billion USD). Vietnam’s trade balance for the first 10 months of 2024 registered a surplus of +23,31 billion USD, a 6% decline compared to the +24,8 billion USD surplus during the same period last year. With these positive results, forecasts suggest that Vietnam’s two-way trade turnover could reach a new record high of 800 billion USD in 2024.  

The USD Index declined by more than 0,4% on the first trading day of the week, reversing Friday’s late-session gains as the market reassessed the balance in tomorrow’s U.S Presidential Election. Former President Donald Trump’s campaign promises on tariffs and immigration are seen by economists as potential inflationary factors, pushing long-term U.S Treasury yields and the USD higher in recent weeks. U.S tariffs and trade uncertainties are also expected to negatively impact other major currencies. Global financial markets could face significant volatility after the election, especially if the new President’s party gains full control of the U.S Congress. 

The USD/VND exchange rate rose by 20 VND yesterday, reaching 25.320, although the upward momentum was tempered by sharply rising interbank VND interest rates in the short tenors. With large foreign currency purchases completed yesterday, the market is expected to stabilize today, likely trading around the 25.200 - 25.300 range.

Asia Commercial Joint Stock Bank assumes no responsibility or liability for any purpose of reference or using the information provided by this newsletter.

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