Published Date: 22/06/2015
Consumption demand went up as domestic economic conditions improved and fuel and electricity prices were raised, pushing CPI higher for a 3rd consecutive month. The business environment in manufacturing in Vietnam has seen constant improvements in the last 21 months with the May PMI at 54.8. Domestic import demand for manufacturing and consumption saw strong acceleration, leading to a trade deficit of USD3 billion in the first 5 months. Credit saw rapid growth in the first 5 months of the year for the banking system. Deposit interest rates edged up slightly in a number of commercial banks.
· Inflation is expected to continue rising in June since HCMC plans to adjust its healthcare service prices upward by 10% from June 1st, 2015;
· HSBC reported that Vietnam’s PMI soared for a 2nd straight month from 53.5 in Apr, 2015 to 54.8 in May, 2015;
· Imports outgrew exports in the first 5 months of the year, resulting in a trade deficit of about USD3 billion. This created more pressures on the VND/USD exchange rate to go up;
· Registered FDI in the first 5 months of the year was only 78% of the previous Y/Y reading. Disbursed FDI growth was still steady;
· The VND/USD exchange rates surged during May but they dropped slightly in the beginning of June;
· The SBV net withdrew money via bills and repos in May thanks to high banking liquidity;
· Bond market remained gloomy in May. Bond demand stood low and bond interest rates rose slightly compared to the end of April.
