Market Highlight 22.05.2024

Southeast Asia is one of the regions with the fastest-growing digital economy in the world, reaching a total transaction value of 218 Billion USD in 2023. The digital economy in this region is projected to reach 600 Billion USD by 2030, with a compound annual growth rate of 16%. Currently, there are over 7.000 digital startups in the region, 80% of which are based in Indonesia, Singapore, or Vietnam. According to data from Google, Vietnam’s digital economy has been the fastest-growing in Southeast Asia for two consecutive years (28% in 2022 and 19% in 2023), surpassing the GDP growth rate by 3,5 times. Total revenue from overseas markets of more than 1.500 Vietnamese digital technology companies reached 7,5 Billion USD, an increase of 4% compared to 2022.

The USD was relatively stable yesterday as the market lacked significant economic data, but the Greenback’s recovery was still positively supported by statements from FED members. FED Governor Christopher Waller and Atlanta FED President Raphael Bostic called for market patience in monitoring inflation changes over the next few months before making the first rate cut decision. The USD Index is likely to maintain a stable trend this week unless there are major surprises in the FED’s May meeting minutes due out tomorrow morning. The volatility of the USD will be greater next week with data on the Personal Consumption Expenditures (PCE) price index and May consumer confidence in the U.S.

The State Bank of Vietnam yesterday continued to adjust the central rate upwards (+4 VND) for the second consecutive day, reaching 24.251 which corresponding to an effective ceiling rate of 25.464. During the day, the exchange rate in the market remained around the SBV’s selling price of 25.450, while the free exchange market saw a slight increase which was around 25.630 - 25.720. Interbank members registered to buy nearly 600 Million USD from the SBV yesterday, bringing the cumulative intervention purchases to about 2,5 Billion USD since mid-April.

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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