Market Highlight 28.05.2024

According to data from the Foreign Investment Agency (Ministry of Planning and Investment), as of May 20th, 2024, the total newly registered capital, adjusted capital, and capital contributions for share purchases by foreign investors (FDI) in Vietnam reached over 11,07 Billion USD, a 2% increase compared to the same period in 2023. There were 1.227 new projects granted investment registration certificates with a total registered capital of nearly 7,94 Billion USD, an increase of 50,8% compared to the same period. The processing and manufacturing industry led with a total investment capital of over 7,43 Billion USD, accounting for 67,1% of the total registered investment, an 11,9% increase compared to the same period. Ba Ria - Vung Tau led in attracting FDI with a total registered investment capital of over 1,52 Billion USD, accounting for 13,8% of the country’s total investment, more than 12 times higher than the same period.

The USD Index experienced its second consecutive day of decline (-0,16%) yesterday and is on track for its first monthly drop (-1,62%) since the beginning of the year. The market is anticipating a series of important inflation reports from the U.S, Europe, and Japan this week to guide the global interest rate outlook. The recent weakening of the USD was triggered by data showing that the CPI slowed down in April. The personal consumption expenditures (PCE) price index report to be released this Friday will further clarify the inflation picture in the world’s largest economy, as it is a key indicator used by the FED when making policy decisions. In case of average worker income and consumer spending weakening last month in the U.S, the PCE is forecasted to decrease in April.

The USD/VND exchange rate decreased by about 20 VND on Monday, maintaining around the SBV’s USD selling price of 25.450. During the day, market participants bought approximately 100 Million USD from the SBV, bringing the cumulative USD intervention amount by the regulator to around 3,7 Billion USD.

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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