Weekly Market Update

05 March 2013

Weekly Market Update

Exchange rates 05 Mar 13 26 Feb 13 VND EUR GBP JPY HKD 20980 1.3029 1.5118 93.50 7.7562 20915 1.3050 1.5180 91.82 7.7577 Change (%) 0.31% -0.16% -0.41% 1.83% -0.02% SBV Official Rate* Open High Low Close Last Week Previous Week 20828 20828 20828 20828 20828 20828 20828 20828

Viet Nam
Currencies Fixed Income Weekly HSBC Fixed Income research is available online: Internet www. hsbcnet.com Disclaimer & disclosures This report must be read with the disclaimer, disclosures and analyst certifications on p3 that form part of it. Issued by HSBC BANK (VIETNAM) LTD.

* (SBVS official rate closed 2012 at 20,828) Source : Reuters

2012-2013 USD/VND graph

21100 21050 21000 20950 20900 20850 20800 20750 20700 2-Jan-12 2-Mar-12 2-May-12 2-Jul-12 2-Sep-12 2-Nov-12 2-Jan-13

2012-2013 O/N VND funding

ON 10 9 8 7 6 5 4 3 2 1 0 27-Feb-12

Treasury & Capital Markets Treasurer Pham Hong Hai VN 84 8 3520 3173 For further information please contact: Trading Team: 84 8 3823 4447 Nguyen Thi Thang VN 84 8 3520 3160 Dinh Duc Quang VN 84 8 3520 3167 Ngo Dang Khoa VN 84 8 3520 3492 Nguyen Tien Dat VN 84 8 3520 6262 Ho T Kim Tuyen VN 84 8 3520 3303 HCM Sales Team: VN Lam Phi Yen VN 84 8 3520 4113 Vu Trong Linh VN 84 8 3520 3275 Duong Buu Linh VN 84 8 3520 3231 Ngo Quang Hien VN 84 8 3520 3284 Le Khanh Truc Vinh VN 84 8 3520 3166 Tran Thuc Khuong VN 84 8 3520 3231 Ngoc Bich Ngan VN 84 8 3520 6473

27-May-12

27-Aug-12

27-Nov-12

Source: HSBC

Source: HSBC

Other markets 05 Mar 13 SIBOR 1 Month 3 Months 6 Months 0.20250 0.29000 0.45750 1580.95 14127.82 11683.45 22560.50 26 Feb 13 0.20250 0.29250 0.46000 1594.00 13784.17 11398.81 22544.23

Inter-bank offer rates (domestic) VND Overnight 1 Week 1 Month 2 Months 3 Months 6 Months 1 Year 2.45 2.99 4.95 6.08 6.60 7.42 8.32 USD 0.29 0.44 0.84 1.08 1.26 1.61 2.16

HN Sales Team: Nguyen T H Phuc Nguyen Hoai Phuong Dao Ngoc Thang Vu T M Huong

VN VN VN VN

84 4 3933 3173 84 4 3933 3171 84 4 3933 3177 84 4 3933 3177

Gold Dow Jones Nikkei 225 Hang Seng

Source: Reuters

treasury@hsbc.com.vn

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Weekly Market Update

Weekly Commentary The VND kept weakening against the green back. Continuing its weakening trend versus the green back since the aftermath of Lunar New Year, the USD/VND ended up at 20945 versus 20915 earlier of the week, posting a decline of 0.143%. There were increasing demands to buy USD/VND mostly from importers and FDI to settle trade while supply from exporters has been relatively lower. Also banks have bought some USD to cover their own short position and for their clients who had borrowed in USD and wanted to hedge the FX risk now when the USD/VND increased. VND low interest rates in interbank was also another factor adding to more demand for USD/VND. Liquidity was quite good but not as much ample as weeks before. According to the SBV on media lately, Vietnam FX reserve is currently able to cover 14-16 weeks of import which is estimated over USD 30 billion, giving the SBV more comfort in managing and running the USD/VND rate flexibly. With the current market trend, the USD/VND is expected to move in the range of 20910-970 in coming time. *The exchange rate is the mid level between bid and offer VND tip tc gim gi so vi USD Tip tc gim so vi ng bc xanh t sau Tt Nguyn n, t gi USD/VND ng ca mc 20945 so vi 20915 vo u tun trc, gim 0,143%. Nhu cu mua ngoi t quyt ton tng mnh t cc doanh nghip nhp khu v FDI trong khi ngun cung t cc doanh nghip xut khu gim. Cc ngn hng thng mi cng mua vo gim trng thi m ngoi t v cho khch hng vay USD mun bo him ri ro t gi khi gi USD/VND ang tng mnh. Li sut VND thp trn th trng lin ngn hng cng l 1 yu t thm vo nhu cu mua USD. Thanh khon trn th trng vn tt mc d khng cn di do nh trong tun trc . Theo bo co ca NHNN trn cc phng tin thng tin i chng va qua, d tr ngoi hi ca VN tng ng vi 14 n 16 tun nhp khu, d on vo khong 30 t USD, gip NHNN c th qun l v iu chnh t gi USD/VND linh hot trong thi gian qua. Vi tnh hnh hin ti, t gi USD/VND d on s giao dch trong khong 20910 20970 trong thi gian sp ti. *T gi ngoi hi tham kho l trung bnh gia t gi mua v bn Interest rates edge up at new month despite ample liquidity Guided by monthly reserve requirements that banks to have hold on their balances with the central bank, interest rates have increased for the first few days of March. Average overnight offered rate on 4March13 increased to 2.61pct (up 54bps vs 25Feb13), and one week 3.00pct (up 2 bps). However, there was still ample liquidity in the system, and thus the market still views that interest rates will fall further soon. This is reflected in the movements of offered rates for other tenors: one month dropped 7bps, two months static, and six months dropped 9bps. Ample liquidity in the system also supported strong interests in government short-dated papers. There were 3 auctions over the last 7 days, and all of them were fully awarded. Total issuance sizes were VND 10 Trio for 91 Days (with yield ranging 6.18-6.30pct) and VND 11 Trio for 182 Days (with yield ranging 7.18-7.20pct). Meanwhile, the amount that commercial banks borrowed from SBV via the OMO channel was VND 406 Bio. The auction for State Treasury Note 364 Days last week came out at 7.85pct for VND 2 Trio (15bps lower). At the same time the auction for State Treasury Bonds came out at 8.30 pct for 2Y (34bps lower, VND 2 Trio awarded), 8.53pct for 3Y (12bps lower, VND 3 Trio awarded), 9.30pct for 5Y (20bps lower, VND 2.459 Trio awarded), and 9.15bps for 10Y (unchanged, VND 888 Bio awarded).

Li sut tng vo thng mi mc d thanh khon vn di do Do c vo u mi thng cc NHTM phi bt u thc hin DTBB bng cch gi s d cao trn ti khon vi NHNN, li sut th trng tng ln trong vi ngy u tin ca thng 3. Li sut cho vay bnh qun vo ngy 4/3/13 ln 2,61% (tng 54 im so vi ngy 25/2/13), v 1 tun ln 3% (tng 2 im). Tuy nhin, thanh khon vn di do trong h thng v th trng vn d kin rng li sut s xung thm trong thi gian ti. iu ny c phn nh trong bin ng ca li sut cho vay ca cc k hn khc: k hn 1 thng gim 7 im, 2 thng gi nguyn, v su thng gim 9 im.
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Weekly Market Update

Thanh khon h thng tt gip h tr nhu cu mua cc giy t c gi ngn hn do Chnh ph pht hnh. c 3 phin pht hnh trong 7 ngy qua, v tt c u thnh cng. Tng lng pht hnh l 10 ngn t ng cho k hn 91 ngy (vi mc li tc t 6,18-6,30%), v 11 ngn t ng cho 182 ngy (vi mc li tc t 7,18-7,20%). Cng lc ch c 406 t ng l s tin NHNN cho cc NHTM vay qua knh Th trng M. Phin u thu Tn phiu Kho bc Nh nc k hn 364 ngy c kt qu l 7,85% (gim 15 im) vi 2 ngn t ng c pht hnh. Cng lc , phin u thu cho Tri phiu KBNN cng c kt qu 8,3% cho k hn 2 nm (gim 34 im, pht hnh 2 ngn t ng), 8,53% cho 3 nm (gim 12 im, 3 ngn t ng c pht hnh), 9,30% cho 5 nm (gim 20 im, 2.459 t ng c pht hnh), v 9,15% cho 10 nm (khng thay i, 888 t ng c pht hnh).

Indicative deposit rates VND Corporate Flexible Time Deposits 1 Month 3 Months 6 Months 9 Months 1 Year 0.10 4.19 5.39 5.64 6.11 6.68 0.09 0.16 0.40 0,90 1.12 USD retail USD Corporate 0.00 0.04

Source: HSBC as at 05 March 2013

This document is issued by by HSBC (Vietnam) Bank Ltd. The information contained herein is derived from sources we believe to be reliable, but which we have not independently verified. HSBC makes no guarantee as to the accuracy or completeness of this information and is not responsible for errors of transmission of factual or analytical data, nor shall it be liable for damages arising out of any persons reliance upon this information. The opinions in this document constitute our present judgement, which is subject to change without notice. This document is neither an offer to sell or the solicitation of an offer to purchase or subscribe for any currency or related instrument and is intended for institutional customers and is not intended for the use of private customers. The document is intended to be distributed in its entirety. No consideration has been given to the particular investment objectives, financial situation or particular needs of any recipient. Unless governing law permits otherwise, you must contact a HSBC Group member in your home jurisdiction if you wish to use HSBC Group services in effecting a transaction in any investment mentioned in this document.

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