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| Vietnam enjoys a trade surplus of 125 billion USD with European and American markets. (Photo: VNA) |
According to the Ministry of Industry and Trade’s European – American Market Department, Vietnam’s trade surplus with European countries is estimated to reach around 33 billion USD and the figure with American nations is 92 billion USD.
This year, Vietnam has exported goods worth 166 billion USD to Europe and America, and imported products worth nearly 41 billion USD from these markets, down 9.6% and 9.1% year-on-year, respectively.
Notably, for the first time after many years of continuous high growth, the country's export turnover to some key markets have fallen sharply such as the US (96.9 billion USD, down 12.4%), and the European Union (43.7 billion USD, down 6.7%).
On the other hand, increases have been recorded in some markets, including the UK, and Eurasian Economic Union (EAEU) and Southern Common Market (Mercosur) countries.
According to the department, in 2024, import-export activities between Vietnam and the European and American markets will have favourable conditions but also face big challenges.
Existing free trade agreements (FTAs) with European and American partners will continue to have positive impacts, and help maintain Vietnam's advantages in trade and investment activities.
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| Photo for illustration (Photo: VNA) |
In addition, market demands in the world in generall and Europe and America in particular are gradually recovering because inflation has seen a downward trend from the end of 2023.
However, the overarching challenge is that the global economy is entering a new period, full of risks, challenges and unpredictability. In 2024, the economic growth rates of the world and countries in Europe and America are forecast to be lower than in 2023.
To make the most of advantages and minimise the impact of challenges on Vietnam's import and export activities, the department recommended closely monitoring the market situation and promptly grasping information on the economic and political situation and fluctuations and policies in the region and the world.
Deposit interest rates hit record low
Savings interest rates have set a new record low of only 1.9% per year for a 1-2-month term, according to the Vietnam News Agency.
Vietcombank has announced a new interest rate list this week that surprised the market. Accordingly, the bank’s interest rate for short-term deposits from 1-2 months is currently only 1.9% per year, a decrease of 0.3 percentage points compared to the previous week. This is the new bottom of deposit interest rates in the market. The interest rate for long-term deposits of 12 months or more at Vietcombank remains at 4.8% per year.
Among the four largest State-owned banks, including Agribank, Vietcombank, VietinBank and BIDV, Vietcombank currently applies the lowest deposit interest rates.
Agribank follows with a deposit interest rate of 2.2% per year for short-term deposits of 1-2 months. If customers deposit 12 months or more, the interest rate at Agribank is 5% per year and the highest is 5.3% per year for a 24-month term.
VietinBank and BIDV apply the same interest rate for 1-2 month deposits at 2.3% per year. Customers depositing for a term of 3-6 months at the two banks will receive an interest rate of 2.9% per year. The highest interest rate at the two banks is 5.3% per year when customers deposit for 24 months or more.
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| Customers make transactions at a Vietcombank office in Hanoi. (Photo: tapchitaichinh.vn) |
Interest rates have dropped to low levels, making many depositors wonder which term to choose because interest rates for terms of 6 - 12 months or more do not differ too much. Even at some small-sized banks, which used to offer deposit interest rates of 9-10% per year about a year ago, the rate is currently also only around 5-5.5% per year.
According to industry insiders, capital mobilised from the end of 2022 with high interest rates of 9-10% per year has almost matured. Therefore, capital raised at lower prices in 2024 will help lending interest rates decrease faster this year.
Vietcombank Securities Company (VCBS) said deposit interest rates have dropped deeply and there is little room for further reduction. However, in the period when the economy is recovering, the current low deposit interest rates need to be maintained to pull lending interest rates down further.
According to Dr. Nguyen Van Thuan from the University of Finance and Marketing, an interest rate of 5% per year or more for 6-12 month deposits is reasonable as it is higher than next year's 4-4.5% inflation target to ensure a profit for depositors. Banks must maintain deposit interest rates higher than the inflation rate to attract depositors to meet the capital needs of the economy.
VCBS forecasts lending interest rates may decrease by another 1-1.5 percentage points in 2024. Banks will consider further lowering lending interest rates for some firms, which have good business prospects, to help the borrowers restructure debts and overcome difficult times.
Dr. Do Thien Anh Tuan, lecturer at the Fulbright School of Public Policy and Management, said the lending interest rate in 2024 will likely decrease in accordance with the recent declining rate of savings.
Tuan suggested that at this time, firms should be decisive in accessing cheap capital when the domestic and foreign economies show signs of recovery.
Monetary policy needs to be managed appropriately in the direction of balancing the capital needs of firms and the savings needs of people. From there, the State Bank of Vietnam will maintain interest rates at a reasonable level to promote credit with an aim to support economic growth, Tuan proposed.
VinFast begins selling electric vehicles in the US (VOV)
Leading Vietnamese electric vehicle maker VinFast is scheduled to begin selling Electric Vehicles (EVs) in the Triangle area of North Carolina on December 28, Radio the Voice of Vietnam quoted the information of the Raleigh-based television station WRAL News.
Leith Automotive which is based in the town of Cary in North Carolina will be the home to the company’s first non-factory-owned dealership in the United States.
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| VinFast begins selling EVs in the US on December 28 (Photo: Car Buzz) |
WRAL News revealed that at the showroom on 2000 Auto Park Blvd, VinFast will introduce its own EVs to customers in Raleigh, Durham, and Cary. The dealership will be operating in co-ordination with the upcoming factory in Chatham County and is part of the firm’s wider strategic plan.
“The VF9, a versatile seven-passenger SUV, is expected to arrive in the first quarter of 2024, with the VF7s to follow soon after,” the television station noted.
WRAL News also quoted a spokesperson for Leith as saying that it will work in tandem with the new factory being built in Chatham.
Projected to be completed in 2025, the initial phase aims to produce up to 150,000 electric vehicles each year, further propelling North Carolina's position as a hub for clean energy and automotive innovation.
Labour export far exceeds yearly target in 2023
Vietnam sent approximately 155,000 workers abroad this year, meeting 129% of the target set for the year and representing an increase of 8.55% from a year earlier, Radio the Voice of Vietnam quoted an initial report unveiled by the Ministry of Labour, Invalids and Social Affairs (MOLISA).
Japan topped the list of recipients of Vietnamese workers, followed by Taiwan (China), the Republic of Korea, China, Hungary, Singapore, Romania, Poland, and others.
This year, the MOLISA strengthened measures to stabilize the traditional labour market, and improve the effectiveness of protecting the legitimate rights and interests of businesses and workers working abroad.
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| More than 150,000 workers have been sent abroad to work under labour contracts this year. (Illustrative image) |
Along with maintaining traditional markets such as Japan, Taiwan (China), and the Republic of Korea, the MOLISA promoted the expansion of new markets with good income and steady jobs, especially in European countries, to increase opportunities for many people to work abroad.
It also kept a close watch on Vietnamese workers abroad to promptly handle issues that may arise, and strengthen support for workers to return home on time to integrate into the domestic labour market.
Currently, approximately 650,000 Vietnamese workers are working in 40 countries and territories worldwide. There are more than 500 businesses licensed to send Vietnamese workers abroad to work under labour contracts./.