Weekly News Bulletin - No. 04, August 2022

A number of large economies and Vietnam's main partners such as the US, EU, and China are facing high inflation due to supply chain disruptions and energy shortages. Other factors put pressure on the price level, namely the US dollar appreciates, the prices of food, foodstuffs, beverages, and apparel often increase during the changing seasons and holidays, year-end festival. Pork prices are trending up due to the influence of some neighboring countries' markets and production costs. Meanwhile, entertainment and tourism sectors have gradually recovered. The focus on deploying and accelerating disbursement of public investment at the end of the year can also cause price fluctuations.

Vietnam's exports are forecast to rise 9.46 percent this year to $368 billion, reported the Ministry of Industry and Trade, with the manufacturing hub expected to benefit from newly signed trade deals despite economic headwinds in its major markets. The Southeast Asian country has signed more than a dozen free trade agreements in recent years, including one with the European Union and an 11-country CPTPP deal that will slash tariffs across much of the Asia-Pacific. Vietnam is an integral part of the global supply chain with around 75 percent of its total exports coming from firms financed by overseas investors, according to government data.

Last week highlight

According to the Ministry of Industry and Trade, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has created a breakthrough for Vietnam's export activities. Particularly, the total import and export turnover reached 680 billion USD in 2021, an impressive growth of 19% despite the adverse impact of Covid-19 pandemic on the world economy. In the first 7 months of 2022, the export turnover between Vietnam and CPTPP member countries reached 31.47 billion USD, up 21.43% compared to the 7 months of 2021 and accounting for 14.48% of the total export turnover of the country.

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Let’s look at some other key financial and business headlines during the past week

1. Vietnam 2022 exports to rise 9.46% to $368 billion: ministry
2. The average CPI in 2022 will increase in the range of 3.37 - 3.87%: Ministry of Finance
3. Firms must work to fully benefit from UKVFTA: Insiders
4. The exchange rate of USD/VND is moving sideways under the pressure of increasing USD interest rate
5. Boeing offers opportunities for Vietnamese companies in aerospace industry
6. VN using synchronous mechanization to enter top-10 produce processing nations
7. Vietnam ranks 5th in economic openness in Asia: Fitch
8. Auto association wants tax cuts for hybrid vehicles
9. South Korean noodles companies in Vietnam see sales boom
10. Fake medicines on the rise