Economic news review April 16

Economic news review

Domestic news

In the foreign exchange market session of April 16, the State Bank listed the central exchange rate at 24,899 VND/USD, an increase of 8 VND compared to the previous session.

The USD buying price is listed at 23,705 VND/USD, 50 VND higher than the floor rate; while the USD selling price is listed at 26,093 VND/USD, 50 VND lower than the ceiling rate.

On the interbank market, the dollar-dong exchange rate closed at 25,845 VND/USD, up 25 VND compared to the session on April 15.

The dollar-dong exchange rate on the free market decreased by 10 VND in both buying and selling directions, trading at 26,010 VND/USD and 26,120 VND/USD.

On April 16, the average interbank VND interest rate decreased by 0.02 - 0.04 percentage points for short terms while increasing by 0.02 percentage points for 1-month terms compared to the previous session, specifically: overnight 4.06%; 1 week 4.30%; 2 weeks 4.46% and 1 month 4.62%.

The average interbank USD offering rate remained unchanged at overnight term while decreasing by 0.02 percentage points at 1-week term and increasing by 0.01 percentage points at the remaining terms, trading at: overnight 4.30%; 1 week 4.36%; 2 weeks 4.43%, 1 month 4.49%.

Government bond yields in the secondary market fluctuated in opposite directions, closing at: 3-year 2.17%; 5-year 2.39%; 7-year 2.73%; 10-year 3.03%; 15-year 3.20%.

In yesterday's open market operations, on the mortgage channel, the State Bank offered VND10,000 billion for a 7-day term, VND10,000 billion for a 14-day term, VND5,000 billion for a 35-day term and VND3,000 billion for a 91-day term, with interest rates all at 4.0%. A total of VND7,896.16 billion was won, of which VND6,366.76 billion was won for a 7-day term, VND1,529.40 billion was won for a 14-day term; there was no winning volume for the remaining two terms. There was VND11,272.35 billion maturing. The State Bank did not offer SBV bills.

Thus, the State Bank of Vietnam withdrew a net VND3,376.19 billion from the market through open market operations yesterday. There were VND102,130.73 billion circulating on the mortgage channel; there were no treasury bills circulating on the market.

On April 16, the State Treasury successfully bid for VND11,575 billion/VND14,000 billion of government bonds called for bid (winning rate reached 83%). Of which, the 5-year and 15-year terms mobilized the entire bid volume, respectively VND3,000 billion and VND500 billion. The 10-year term mobilized VND8,060 billion/VND10,000 billion called for bid and the 30-year term mobilized VND15 billion/VND500 billion called for bid. The winning interest rate for the 5-year term was 2.20% (+0.05 percentage points compared to the previous auction), the 10-year term was 3.0% (unchanged), the 15-year term was 3.09% (+0.01 percentage points) and the 30-year term was 3.28% (unchanged).

Stock market, the uncertain psychology continues, the market continues to close in red. At the end of the trading session, VN-Index dropped sharply by 17.49 points (-1.42%) to 1,210.30 points; HNX-Index lost 0.83 points (-0.39%) to 209.41 points; UPCoM-Index fell 0.64 points (-0.70%) to 90.39 points. Market liquidity decreased with a transaction value of over VND 20,700 billion. Foreign investors net sold more than VND 345 billion on all 3 exchanges.

The Government has just issued Decree 81 and 82/2025, extending the deadline for tax and land rent payment for businesses in 2025. Accordingly, special consumption tax on domestically manufactured and assembled cars is extended until November 20, 2025; at the same time, other taxes such as value added tax (VAT), corporate income tax, personal income tax and land rent are extended with a total value of nearly VND 102,000 billion.

International News

Fed Chairman Jerome Powell delivered key economic and monetary policy remarks. Early this morning, Vietnam time, Chairman Powell said that GDP in the first quarter of the year slowed from a solid growth rate in 2024. Businesses increased imports, reflecting efforts to cope with potential tariffs, which are expected to affect GDP. The tariffs announced were higher than expected, and as such, could also lead to higher and more persistent inflation.

On monetary policy, Mr. Powell said the Fed is in a good position to see more clearly before considering any adjustments to its stance. The Fed understands that high unemployment or inflation can hurt businesses and households. The Fed will continue to do everything it can to achieve its goals of price stability and maximum employment.

Total and core retail sales in the US increased 1.4% and 0.5% month-over-month in March, following increases of 0.2% and 0.7% in the previous month, and both were better than the forecasts of 1.3% and 0.4%. Compared to the same period in 2024, total retail sales increased 4.73% year-over-year in March, up from a 3.5% increase in February.

China's GDP grew 5.4% year-on-year in the first quarter, matching the previous quarter's growth and beating the forecast of 5.2%. In March alone, industrial output and retail sales in China were both strong, rising 7.7% and 5.9% year-on-year, respectively, beating expectations of 5.9% and 4.2%. However, the main reason for the strong GDP growth in the last quarter was that businesses boosted exports, raising turnover in March to 12.4% year-on-year.

Source: https://thoibaonganhang.vn/diem-lai-thong-tin-kinh-te-ngay-164-162906-162906.html