Market Highlight 17.09.2024

   According to the General Statistics Office of Vietnam, the country’s total import-export turnover reached $511,11 billion in the first 8 months of 2024, up 16,7% compared to the same period last year. Trade volumes in the last 2 months have consistently exceeded the $70 billion mark, with exports alone reaching nearly $38 billion in August. If this growth momentum continues, the target of a 17,5% increase compared to 2023 is well within reach, equating to a total trade turnover of approximately $800 billion by the end of the year. Vietnam’s trade deficit with China in the first 8 months of 2024 has risen to $54,2 billion, nearly $5 billion more than the trade deficit with this market for the entire previous year. This increase is driven by the demand for raw materials, machinery, and equipment used in the production of export orders that have been recovering positively since the beginning of the year. With strong improvements in trade in the first half of 2024, it is forecasted that Vietnam-China trade turnover could approach $200 billion this year.
 

   The USD Index fell by an additional 0,4% in the first trading day of the week, reaching its lowest level in over a year against the JPY as market expectations increasingly favor a significant policy rate cut by the FED this Thursday morning. Currently, the market is predicting a more than 60% likelihood that the FED will opt for a 0,5% rate cut at its September meeting, a sharp increase from 15% the previous week.

   The USD/VND exchange rate edged up by about 10 dongs yesterday, closing at 24.550. In the morning session, USD demand from some businesses for payment purposes pushed the rate up to 24.590 before easing back down by the end of the day. Both domestic and international markets are awaiting specific actions from the U.S Federal Reserve, so the interbank exchange rate is likely to remain in the 24.500 - 24.600 range until the FED concludes its meeting early Thursday morning.

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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