Market Highlight 11.06.2025

   Trade negotiations between the United States and China currently underway in London are reportedly progressing positively, according to U.S officials, as the world’s two largest economies push for a long-term resolution to bilateral trade tensions. The discussions are expected to continue through Wednesday. White House economic advisor Kevin Hassett noted that the U.S may consider lifting recently imposed export controls on goods such as semiconductors if China accelerates the supply of rare earth elements and magnets - materials deemed critical to the American economy. Last month’s preliminary agreement reached in Geneva to reduce tariffs helped ease market fears over an escalating trade war potentially triggering a global recession. President Donald Trump’s tariff policies since taking office have disrupted global trade flows, causing supply chain bottlenecks at major ports, slashing exporter revenues, and passing higher costs on to consumers. On Tuesday, the World Bank downgraded its global growth forecast for 2025 to just +2,3%, citing elevated tariffs and rising uncertainty as major risks weighing on most economies. Customs data released earlier this week also showed that China’s exports to the U.S fell 34,5% in May - the steepest drop since the onset of the COVID-19 pandemic in 2020.
  In the domestic market, the USD/VND interbank exchange rate declined by an additional 30 VND on Monday, marking the fourth consecutive session of depreciation as foreign currency supply conditions improved early in the month. However, persistently falling VND interbank interest rates across short-term tenors have helped keep the exchange rate anchored above the 26.000 level. Market participants remain focused on the outcome of ongoing trade negotiations between Vietnam and the U.S, which will likely shape the next directional move in the exchange rate.

Please contact the nearest Asia Commercial Joint Stock Bank's branch to receive information and consultancy if you are in need of making any foreign exchange and derivatives transactions.

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