Market Highlight 13.05.2024

Samsung is currently the largest foreign direct investor in Vietnam with major projects in Bac Ninh, Thai Nguyen and Ho Chi Minh City in which this company has invested by a total investment of up to 22,4 Billion USD. In 2023, Samsung’s revenue and export value respectively reached 65 Billion USD and 55,7 Billion USD. It is expected that Samsung’s exports will grow by more than 10% in 2024 compared to 2023. The production volume of mobile phones by Samsung in Vietnam accounts for over 50% of Samsung’s global production. In need of expanding its business operation, Samsung plans to increase investment capital by 1 Billion USD annually in the near future and enhances the development of the domestic supply chain to attract more businesses to participate and strengthen cooperation in technology workforce training. Overall, in the first four months of 2024, the export of phones and components from Vietnam reached about 15,42 Billion US which shows an increase of 6,6% compared to the same period last year and accounts for nearly 15% of Vietnam’s total export value.

The USD Index recovered slightly by about +0,23% last week after a sharp decline of nearly 1% in the previous week on grounds of some FED Board Members’ speeches relating to current U.S interest rate policy. Statistical data from the University of Michigan shows that the U.S consumer sentiment reached only 67,4 points last month, the lowest level in six months, with consumer inflation expectations continuing to rise according to surveys. Market participants this week will focus on the Consumer Price Index (CPI) and the Producer Price Index (PPI), as well as retail sales data for April for the U.S economy.

The USD/VND exchange rate increased by about 40 Dongs last week and closed at 25.450 on Friday. The State Bank of Vietnam has resumed supplying the market with about 40 Million USD for the third time in about a month that brings the total USD intervention amount to 417 Million USD at the rate of 25.450. The USD/VND exchange rate is forecasted to remain around the SBV’s selling price today, however the upward momentum may continue to expand towards the end of the week.

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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 Ms. Hong Anh (Financial Markets Researcher) – Email: anhkh@acb.com.vn