Market Highlight 29.05.2024

As of May 20th, Vietnam’s fruit and vegetable export turnover has reached 2,5 Billion USD since the beginning of this year and has shown a 25,7% increase compared to the same period in 2023. Key markets continued to accelerate that China leading at 1,6 Billion USD and South Korea at 107 Million USD. By the end of May, rice export turnover has reached 2,3 Billion USD, reflecting an 11% increase in volume and a 34% increase in value. Major markets include the Philippines, China, and Indonesia. Domestic rice prices have risen compared to the same period last year. It is forecasted that Vietnam’s rice exports will continue to flourish in 2024 as major markets increase import volumes. If India does not lift its rice export restrictions due to El Nino by September this year, it will present a significant opportunity for Vietnam’s export activities.

The USD Index fell by more than 0,2% yesterday before rebounding at the end of the day. Data showed that U.S. consumer confidence improved significantly in May, despite a decline over the previous three months. Better-than-expected U.S. economic data in the first quarter and no signs of a severe recession in key areas such as the labor market, consumption, and manufacturing have supported the USD. Concerns that inflation may remain above the FED’s target for an extended period continue to bolster the USD. Last night’s data indicated that this concern persists, with many households expecting interest rates to remain high next year.

The central exchange rate was adjusted down by 12 VND yesterday after six consecutive days of increases. The effective ceiling rate was 25.469 VND, while the market participants traded mostly below the SBV’s USD selling price of 25.450 VND. There were no USD purchase transactions from the SBV observed yesterday. Thus, the cumulative USD intervention sales by the SBV from April to now remain at 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