Economic highlights: adjustments in exchange rate, petrol prices

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The State Bank of Viet Nam (SBV) on August 19 decided to increase the trading band between the Vietnamese dong and the U.S. dollar to /-3% from the current /-2%.

Earlier on August 12, the trading band of VND/US$ was adjusted from /-1% to /-2%, a move considered as prompt and suitable after China weakened its currency a day earlier.

The SBV also announced that the average inter-bank VND/USD exchange rate will be increased by 1% to 21.890 from the current 21.673, applicable from August 19.

In response to the dual decision, commercial banks began listing new buying and selling rates.

Vietcombank and BIDV listed the buying and selling rates at VND22.280 and VND22.380 per dollar, respectively, while Eximbank’s selling rate rose to VND 22.450 per dollar at 9am in the morning.

The same day, the prices of RON 92 petrol and E5 bio-fuel were reduced by VND768 per liter as of 3 pm, the 14th adjustment so far this year.

The joint petrol and oil price control team of the Ministry of Industry and Trade and the Ministry of Finance said with the reduction, the price of RON 92 petrol will not be higher than VND18,536 (US$0.84) and that of E5 bio-petrol not more than VND18,041 (US$0.80).

The price of diesel oil also dropped by VND441, while that of kerosene decreased by VND703, and mazut, VND736.

New general director of DongA Bank appointed

The State Bank of Viet Nam (SBV) on August 20 announced to suspend DongA Bank general director Tran Phuong Binh and his deputy Nguyen Thi Ngoc Van from their posts after the bank was placed under special surveillance.

Vo Hai Nam, risk management director at the Bank for Investment and Development of Viet Nam (BIDV), was appointed as new general director of DongABank while PhamThe Nguyen, deputy director of BIDV’s transaction office No. 2, took up the post of deputy general director at the HCMC-based bank.

Earlier on August 13, the SBV put DongABank under special surveillance, citing its violations of regulations on financial management, credit and business activities in the years before 2012, which seriously deteriorated its financial capability.

Economic hubs release CPI in August

The consumer price index (CPI) in Ho Chi Minh City dipped 0.12% in comparison with the previous month while the CPI in Ha Noi rose 0.17%.

According to Ho Chi Minh City’s Statistics Office, the index over the recent eight months saw a year-on-year increase of 0.66%.

The reduction in the August CPI is attributed to the decrease in the oil and gas prices, which led to the reduction of 2.4% in transport price.

In Ha Noi, eight out of 11 commodities witnessed increases in prices. The prices of education and food rose 2.9% and 0.64%, respectively.

The reduction in oil and gas prices also helped lower the price of transport by 2.19%. The price of housing, electricity, water, fueland building material fell 0.49%.

Vietnamese longan, moon cakes exported to U.S.

Nearly two tons of longan from Ham Tu and Hong Nam communes in the northern province of Hung Yen are to be shipped to the U.S.

The fruits will undergo irradiation treatment in Ho Chi Minh City.

As a pre-condition for entry, the fruits must be grown in orchards registered with and monitored by the National Plant Protection Organization of Viet Nam to ensure they are disease-free. 

Viet Nam hopes to export 600 tons of lychee and 1,200 tons of longan to the U.S. every year.

Kinh Do Binh Duong JSC has announced that it has shipped 20 tons of moon cakes (around 100,000 pcs) to the U.S. to prepare for the upcoming mid-Autumn festival.

The company planned to make around 3,000 tons of nearly 60 different products and flavors with ingredients like lotus seed, green bean, green tea, almond, Macadamia nut, durian and others for domestic consumers during this year’s mid-Autumn festival.

Prioritized programs/projects released

PM Nguyen Tan Dung has signed Decision No.34/2015/QD-TTg issuing a list of prioritized programs/projects which are be considered for the Government’s guarantee.

The prioritized projects include those in energy, mineral exploitation and processing or commodity production and export service provision in line with the country’s direction on socio-economic development.

The above projects must be important national ones decided by the National Assembly in accordance with the Law on Public Investment. They should also be in the domains and regions where investment is encouraged in accordance with the Investment Law.

Programs/projects in energy and mineral exploitation and processing under Group A include those in power infrastructure development, construction of new power plants and power transmission and distribution facilities.

Special projects which are decided by the Government and programs/projects on transport infrastructure developments (such as highways) with a total investment from VND10 trillion (US$450 million) will also be considered for Government’s guarantee.

By Thuy Dung