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Banking & Finance
Vietnam should not delay IPOs
VNECONOMY updated: 26/09/2007
Associate Prof Dr Dang Van Thanh, former Deputy Chairman of the National Assembly’s Economics and Budget Committee, said that Vietnam should not delay the scheduled IPO plans.
What the market needs is stability
Mr Thanh said that the State should not delay the IPOs of big corporations, while it needs to set up suitable roadmap for the IPOs.
IPO is a part of the process of equitising big corporations, which aims upgrade the corporate governance skills and restructure the national economy. Therefore, the State should not delay the process which has been legalized.
In fact, foreign investors are interested in Vietnam’s stocks partially because they are interested in the state owned enterprise equitisation process in Vietnam, he said.
Mr Thanh admitted that experts have reasons to suggest delaying IPO. They fear that the IPOs undertaken in the context of the market falls would bring losses to the state as the seller, and cause the oversupply of commodities on the market.
However, Mr Thanh keeps an optimistic view about the impact of the IPO. He even thinks that the IPOs would act as the catalyst to make the stock market prosper again.
The IPOs of big corporations would bring ‘good commodities’ to the market, while the buyers would have the chance to purchase the good commodities at reasonable prices. If the IPOs had come several months ago, when the stock prices were overly high, the investors would have been overcharged.
Mr Thanh does not think that it is a bad thing if the recent IPOs ended with the low auctioned prices. In fact, the prices were considered low only if they are compared to the highest peaks of prices seen when the market was overly hot. The overly high prices do not truly reflect the real value of listing companies.
The reasonable prices of shares would help create a sustainable and stable stock market. The stability of the stock market, not the hot development, is the thing the Government strives to.
No need to worry about capital shortage
The experts, who have suggested delaying IPOs, also fear that IPOs would not attract investors, who have spent a lot of money on stocks already, now do not have money for other stocks. In other words, they think that investors do not have enough money to buy many kinds of commodities, especially when banks are now trying to limit the loans to securities investment.
However, Mr Thanh denied the worry about the capital shortage, saying the idle capital among the public remains very profuse. Once the stock market bounces back, the capital would automatically flow into it.
Mr Thanh believes that nearly $3bil is waiting to be injected in stocks. Many big investment funds are ready to disburse for the plans to buy shares of big equitising corporations in IPOs.
Supposed that the idle capital among the public has become exhausted and investors do not have much money to buy more commodities, then the delay of the IPOs of 20 general corporations, nearly 400 enterprises and banks for some more time would not bring the expected things.
“In all cases, the delay of the IPOs would bring no profit, and you should understand that there is no need to do that,” he concluded.
Source: VietnamNet
Vietnam\'s Dong Extends Gains to Fifth Day, Longest in Two Years
Sept. 25 (Bloomberg) -- The Vietnamese dong extended its gains to a fifth day, the longest winning streak in more than two years, on speculation the central bank is allowing the currency to strengthen to slow inflation.
The government has a policy of devaluing the dong by about 1 percent a year to boost exports and economic growth. A weaker currency has quickened inflation, which reached the fastest in 17 months in August. The General Statistics Office will release consumer-price index figures for September as early as today.
The currency rose 0.1 percent to 16,110 against the dollar as of 9:21 a.m. in Hanoi, according to prices from HSBC Holdings Plc, the longest run of gains since July 26, 2005. The dong has jumped 0.8 percent since Sept. 18 after the State Bank of Vietnam devalued it 0.6 percent in the previous six months.
``The central bank is probably a little concerned about inflation and is allowing some gains\'\' in the dong, said Katie Dean, a senior economist at Australia & New Zealand Banking Group Ltd. in Melbourne. ``This may be preemptive work before the inflation numbers which may be a bit nasty.\'\'
Vietnam hasn\'t changed its policy of seeking a weaker currency, Nguyen Dong Tien, a deputy governor of the State Bank of Vietnam, said yesterday. ``In setting the daily exchange rate of the dong against the U.S. dollar, we have to look at the market\'s movement and can be flexible.\'\'
Exports Increase
The government has let the dong weaken for 11 years. Exports increased 19 percent from January to August, the General Statistics Office said last month. Deputy Prime Minister Nguyen Sinh Hung said in July the government wants overseas shipments to grow as much as 23 percent this year.
``The currency may hold on to recent gains as the inflation numbers are coming,\'\' Dean said. ``Longer-term though, we see the central bank continuing its policy of slowly depreciating\'\' the dong.
Yields on benchmark five-year bonds climbed yesterday on concern inflation will accelerate. Five-year note yields rose 6 basis points to 8.17 percent, according to prices set by banks once a day and compiled by Bloomberg. A basis point is 0.01 percentage point.
To contact the reporter on this story: Beth Thomas in Tokyo at bthomas1@bloomberg.net .
Vietnam needs 20 nuclear power plants..............
In Vietnam, a pre-feasible project on the first ever nuclear power plant construction is in the pipeline, which has a capacity of around 2400 megawatt and is located in the province of Binh Thuan. Once being approved, it will come into operation in 2017 - 2020.
Dr. Dinh Duc Huu is the first Vietnamese – American who has license on operating nuclear power plant. He is now the President and CEO of American Technologies, Inc – (ATI), a 100% foreign invested company, performing in the fields of Eco-tourism, Information Technology, Aquaculture, and Oil & Gas exploration and exploitation in Vietnam. He believes that in order to maintain an annual growth rate of 7-8%, Vietnam should build around 20 nuclear power plants.
http://www.bvom.com/news/english/news/index.asp?.sequence=53682&.this=51
Indian investors seek fortune in Viet Nam............
Tuesday, September 25, 2007
A senior Indian economist has extolled Viet Nam as an attractive destination for Indian investors, citing the country’s high economic growth and constantly improved investment environment.
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S. Rethinavelu, President of the Chamber of Commerce and Industry of India’s Tamilnadu State, was leading a delegation of executives from 16 leading companies and industrial groups to seek business opportunities in the Southeast Asia’s fastest-growing economy from Sept. 23-25.
At a business forum on Sept. 24, the Indian economic expert pointed out the need for the two developing countries to boost bilateral cooperation, especially in economic area.
In reply, Nguyen Van Hai, Deputy Head of the International Relations Department under the Viet Nam Chamber of Commerce and Industry, emphasised Viet Nam’s policy in support of foreign investors.
http://www.bvom.com/news/english/news/index.asp?.sequence=56548&.this=53
In the Dong I hold the 20K and I hold every denomination in the Iraqi Dinar. I know that every Dinar holder is waiting for the 'reval' and the news in the area seems to radiate that expectation. Whereas, Vietnam is growing hand over fist and news there is showing astronomical growth. Both countries will have a day of reckoning imo, that is with valuation.
well I'm holding some DONG in 50,000-100,000 & 500,000 And in the DINAR-Some -5,000--10,000 & 25,000 . Hey maybe if I say PRETTY PLEASE they'll revalu them SOON.. lol
Maybe so, but some-where down the line a decision will need to be made about valuation imo. It just depends how much growth Vietnam can absorb at current status and where critical mass maybe for valuation. I would want to hold small denominations of the Dong just in case of a LOP...but they are well settled on one currency presently so that hurdle has been met.
Looks real good for VN, BUT it's NOT having any effect on the DONG for us here. I don't think MOM & POP will invest in the DONG with no mention of any revaluation planned. This could very well take YEARS TO ACCOMPLISH. JMO.
Fresh FDI set to exceed $2bil in HCM City
VNECONOMY updated: 24/09/2007
Ho Chi Minh City has gained roughly US$1.3 billion in foreign direct investment (FDI) since the start of the year, according to the Department of Planning and Investment (DPI).
With several major projects waiting in the wings, the final tally for 2007 should exceed that in 2000.
The department’s director, Mr. Thai Van Re, reckons the 2007 total is bound to pass the US$2-billion mark as there are 282 FDI projects waiting for approval.
Half of the newcomers are in the service sector and half in property development.
Korean companies are responsible for the biggest portion with 89 projects worth US$55 million, or 47 per cent of the city’s fresh FDI.
Singapore comes next with 24 projects worth US$190 million, followed by Taiwan with 17 projects worth US$25 million.
Among the many waiting for a license are Vietnam-Korea Development Ltd. with investment capital of US$79 million, Yonvoo-Van Phuc Ltd. with US$300 million, GS Co. with US$348 million, and BDC-WCT Ltd.
In all, Ho Chi Minh City has gained 2,484 foreign projects, or 31.5 percent of the national total, with combined investment capital of U.S. $16 billion.
Mr. Re thinks this city is the best place to invest in Vietnam, despite the higher cost of renting and other services, as the infrastructure is superior and the workers are more skilled than elsewhere, which works to keep costs down.
He admits it’s hard to find land, or was until recently, and the cooperation among state agencies is not what it could be and causes project approval to be delayed, so it’s understandable that investors get annoyed at times.
However, he promises an equal and transparent investment environment for all, and says his department will raise its game to suit recent policy changes.
These improvements will include more enterprise forms and simpler administrative procedures.
Source: Sài Gòn Giải phóng
http://www.vneconomy.com.vn/eng/?param=article&catid=&id=56c277fcb76824
http://www.state.gov/e/eeb/ifd/2007/80763.htm
Hai Phong sees record number of business start-ups
VNECONOMY updated: 25/09/2007
The northern port city of Hai Phong saw a record number of business start-ups in the first nine months of this year, according to the municipal Department of Planning and Investment.
In the period, the city licensed nearly 2,240 businesses, capitalised at over 10 trillion VND. The figures represented an increase of 54 percent in volume and 173 percent in value.
The department said the city’s effort to simplify administrative procedures was one of the major reasons behind the increase in the number of business start-ups.
The newly-licensed businesses, which include 1,340 limited liability, 617 joint stock and 65 private companies, are generating around 30,000 jobs.
They have brought the total number of enterprises in the city to more than 7,000.
Source: Vietnam Agency
Where there's smoke there's fire :O)
Outside the Box----What are members thoughts on this Older Article.----------------
US could top Viet Nam investors list: officials
(19-06-2007)
A worker of II-IV Co Ltd, a wholly US-owned company with investment capital totalling US$6.5 million in the Viet Nam-Singapore Industrial Zone in Binh Duong Province, is on the optical prismatic production line. - VNA/VNS Photo Duong Tri Tuong
HCM CITY - US investment will surge in the next few years, making that country the top investor in Viet Nam, government officials have predicted.
Experts from the Ministry of Planning and Investment (MPI) said never before had executives from so many large US firms come to Viet Nam. In May and June alone, two US delegations arrived in the country with dozens of officials from major companies to study the investment environment.
Represented were Boeing, Chevron, Exxon Mobil, IBM, Time Warner, Abbott, Ford Motors, and General Electric.
They were especially interested in the Vietnamese Government's macroeconomic policies, and most expressed the desire for an investment environment that would enable them to invest for the long-term.
Rising interest
Tran Tuan Anh, the Vietnamese consul in San Francisco, said American businesses' interest in Viet Nam has risen in recent years, particularly after WTO accession and establishment of Permanent Normal Trade Relations (PNTR) with the US.
Colin Low, President of General Electric (GE) for Singapore, the Philippines and Viet Nam, said after his recent visit to Viet Nam that the country was ripe for investment.
The ministry experts said many US investors have already submitted proposals for large projects and some have signed agreements with Vietnamese partners.
Nguyen Bich Van, deputy director of the Department of Foreign Investment, said during last year's APEC conference that AES had signed an agreement with the Viet Nam Coal and Minerals Corporation to set up a US$1.46 billion joint venture to build the Mong Duong thermal power plant in the northern province of Quang Ninh.
"The project may receive a licence this year."
Two US insurance companies, ACE and Liberty Mutual, have already received licences.
Gannon has submitted a proposal to build a 1,000-MW plant in Dong Nai Province near HCM City.
Conoco Phillips has invested some $1 billion in petroleum exploration and drilling. The company has said it will invest billions more if it finds opportunities.
Leading IT firms like Microsoft, Unisys, Qualcomm, and Motorola too have expressed a desire to invest in Viet Nam. Qualcomm wants to supply 3G mobile telephony infrastructure to Vietnamese companies, EVN Telecom and Hanoi Telecom, and build a wireless internet network to serve education.
The foreign investment department's Van said this year the ministry would send promotional teams to the US to attract investors.
To encourage American investors, the Government would offer to help them sort out problems they are likely to meet in the country. It will set up joint-ministerial working groups to assist US investors.
The Government will also target overseas Vietnamese (Viet kieu) investment in their native country.
Good start
The Department of Foreign Investment reported that by mid-May US companies had invested more than $2.3 billion in the country, becoming the 8th largest foreign investors. They accounted for 3.5 per cent of the total foreign direct investment and 4.4 per cent of the total number of projects.
They have invested mainly in industry and construction, with 210 projects worth over $1 billion. Agriculture, forestry, and fisheries accounted for the remainder.
But the department's director, Phan Huu Thang, said that the actual figure was much higher since many US companies invested in Viet Nam through subsidiaries based in Britain, Virgin Islands, Singapore, Hong Kong.
Among them were Coca Cola, Procter & Gamble, Unocal and Conoco, he added.
The department's statistics show that US investment through third countries is worth around $2.4 billion.
Intel, for instance, applied last year through its Hong Kong subsidiary to invest over $1 billion to set up the Intel Products Company to manufacture chips. - VNS
http://vietnamnews.vnagency.com.vn/showarticle.php?num=04BUS190607
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HOW do YOU as A HOLDER OR DEALER OF DONG CURRENCY SEE This AS IT MAY PERTAIN to Future Impact on the VALUE of the DONG.
Thanks and Regards,Rick c
Thank you. I think it points out how the PRESS will PRINT just about anything,no matter WHO writes it. we will find Positive and negative on many fronts here and abroad as to our relationship with VN and those who would love to UNDERMINE all that HAS BEEN ACCOMPLISHED. you have a great week end also.
Interesting: "But the law-maker is rated at a mere 13 per cent for effectiveness by the American Civil Liberties Union and this shows his anti-civil rights voting record. Smith voted yes for a $78-billion-emergency-package for the war in Iraq and Afghanistan and against a proposed $84 million in grants for Black and Hispanic colleges."
Good morning to you Rick...I am
not directing my comments toward you but I have to comment on this crap article.
The 1st time I started reading it I was getting a little riled up, and when I got down to the part speaking of the ACLU...I stopped reading because I have a real problem with that bunch anyway! Turns out it was just a reference of the ACLU.
Then I went back a short time later and read the whole article a couple of times and I thought...what a bunch of crap and propaganda!
Then just before I built up a full head of steam..lol..I noticed it was written by Viet Hung [VNS] and that said it all for me. I could pick this apart but I will not waste my time on it, but had to take a written stand against it...
In my mine, these kind of articles are not doing the Vietnam cause any favors.
You have a great week-end Rick and God bless!
ya know brother, I been asking that same question.I have even sent e-mails to all these newspaper's and such and not once have I recieved a reply. Coarse I didn't think I would, But I hoped.And with the OIL PB rising as it has, it just doesn't make sence. go figure. Rick c
Outlook
(21-09-2007)
US House passes bill hampering Viet Nam development, relations
by Viet Hung
The US House of Representatives made another wrong decision against Viet Nam on Tuesday when it ratified legal document H.R. 3096.
The world is now interactive and interconnected but it is unacceptable for the legislature of one country to threaten sanctions against another in response to the latter’s internal affairs.
But it was not a big surprise that Christopher Smith, Republican, wrote the offending legislation because he has been a vocal critic of Viet Nam.
Nor was it strange that the House Foreign Affairs Committee, which approved the bill, the "Viet Nam Human Rights Act of 2007" last July, and the House itself supported this latest decision.
Several people in the US still think they have the right to criticise individuals, organisations and even countries in defiance of reality.
H.R. 3096 prohibits any increase in US non-humanitarian assistance to the Viet Nam Government unless it meets a bevy of demands including the release of people that Smith and his supporter call "political and religious prisoners," and respects religious freedom and the human rights of all ethnic minority groups.
The act extended intervention into Viet Nam’s internal affairs by authorising US$4 million over two years for organisations and individuals to "promote human rights in Viet Nam" and over $10 million for Radio Free Asia which is notorious for its distortion of any stories about Viet Nam.
Smith’s legislation also requires the US State Department to issue a yearly report about the progress of human-rights reform in Viet Nam.
"The act has sent a signal to the Viet Nam’s Government that violations of human rights will lead to sanctions," said its author.
Who is Chris Smith?
Christopher Henry Smith, 54, is a Republican Party politician, who is a member of the United States House of Representatives for the 4th District of New Jersey. Since being elected to Congress, Smith has purportedly played a key role in the promotion of human rights reforms in the former Soviet Union, Romania, Viet Nam, China, Sudan and Cuba.
One of his significant legislative achievements was his landmark Victims of Trafficking and Violence Protection Law, the nation’s first law to deal specifically with human trafficking.
But the law-maker is rated at a mere 13 per cent for effectiveness by the American Civil Liberties Union and this shows his anti-civil rights voting record. Smith voted yes for a $78-billion-emergency-package for the war in Iraq and Afghanistan and against a proposed $84 million in grants for Black and Hispanic colleges.
He voted against more immigrant visas for skilled workers but for allowing electronic surveillance without a warrant and continuing intelligence gathering without civil oversight.
As man who does not support his own country’s ideals of civil liberties and human rights, how can Representative Smith instruct those outside his country in what is right or wrong? Viet Nam and those countries scrutinised by Smith can never expect either a peaceful or constructive view from the lawmaker.
Rights arguments
Viet Nam’s President Nguyen Minh Triet told President George Bush during his visit to Washington last summer that Viet Nam’s laws could not totally match American laws because the two countries have different histories. Other Vietnamese representatives have reiterated that their country’s laws ensures citizen rights and that only law violators are prosecuted.
Foreign Ministry spokesperson Le Dung said on Wednesday that "Viet Nam strongly protests the Viet Nam Human Rights Act of 2007 which contains fabricated information about the situation in Viet Nam and affects the current positive development of the Viet Nam-US relationship."
The Vietnamese people had pursued their struggle for independence, freedom and democracy over many decades, he said.
The Viet Nam Constitution clearly stipulates that the State respects and ensures the rights of its citizens to economic, political, cultural, social and civil rights.
These include the right to freedom of religion, speech, the press, information, assembly and the forming of associations.
After 20 years of renewal, Viet Nam has achieved economic development; provided social justice; promoted democracy; improved living standards and ensured the rights and freedom of its citizens.
The progress has been recognised by the international community.
"Viet Nam has been and is ready for dialogue with the US about a number of issues, including democracy, human rights and religion," Dung said.
The US House of Representatives should objectively assess democracy and human rights in Viet Nam within the country’s historical context while respecting Viet Nam’s economic, cultural and social distinction in the spirit of co-operation and mutual understanding.
It should not let these issues hinder the fine development of relations between the two countries.
It is a pity that the House of Representatives has ignored what has been taking place in Viet Nam and intentionally politicised civil misconduct to pressure a nation that is trying to stand on its own feet and support a group of extremists to change the path that a nation has chosen.
The obvious question is: Did the congress members who voted for the bill act responsibly to strengthen the ever-increasing and close ties between the two countries?
Will the intervention in another country’s internal affairs gain any support when the scandals of Guantanamo and Abu Ghraib continue to dismay the people of both America and the world? — VNS
I dont do it very often, but sometimes when I get in the mood to do a little DD on this Vietnam Dong currency play. I read article after article and I just seem to get more and more confused. I understand all the whys and what fors about the reval of the dong...I think..LOL....
But the more I read and see how Vietnam is growing by leaps and bounds..with the world rushing in to stake their flag in the Vietnam economy..How has a sizeable reval not happened as of yet?
High road for Vietnam-US ICT cooperation
VNECONOMY: 21/09/2007
Vietnam is one of the fastest-developing technology export markets in Asia; Vietnam is the number-one destination of American businesses; and Vietnam’s ICT market will see stable growth in the future were the major opinions of US representatives at the Vietnam-US information and communication technology dialogue held in Hanoi on September 17-18.
David Gross, officer in charge of information and international media of the US Department of State, said that Vietnam was an important country to the US. The relations between the two countries have been expanded and deepened in many fields, including cooperation in technology.
Jamie Estrada, Deputy Assistant Secretary for Manufacturing of the Department of Commerce, said that in recent years, Vietnam had attracted attention to its ICT industry and had become one of the fastest-developing technology exporting markets of the US in Asia, and an attractive destination for hi-tech investment of US businesses.
After five years implementing the Vietnam-US Bilateral Trade Agreement (BTA), Vietnam’s ranking on the list of trade partners of the US has jumped from 66th to 43rd. In Asia, Vietnam ranks third after China and India.
In terms of ICT, the US’ export turnover growth to Vietnam has surpassed China and India, to become the most rapid developing export market (20%). The US’ imports of ICT products from Vietnam also grow by 62% a year on average.
Three major factors in Vietnam that are attractive to American ICT equipment producers are low tariffs, positive investment environment and improving standards.
The report of the US International Trade Committee released in September 2007 praises Vietnam as the new border post for trade in Asia of the US.
Robert Pepper, a high-ranking lawyer of Cisco group, told VietNamNet that the goals and expectations of ICT companies of the two countries were quite similar. It is necessary to speed up the cooperation process.
Deputy Minister of Information and Communication of Vietnam, Dr. Vu Duc Dam, said that the US was a significant partner of Vietnam in the field of ICT. Cooperation in this area between the two sides is quite satisfactory but needs to be promoted.
According to Mr. Dam, this is the first time government agencies and businesses of the two countries have had a dialogue on ICT and he emphasised that the dialogue atmosphere helped strengthen mutual understanding and open many opportunities of cooperation between enterprises, governments and governments and businesses.
Mr. Gross told VietNamNet that in the field of ICT, Vietnam was in the top group of countries with whom the US needed to promote dialogues because of the great potential for cooperation and the great interests of American businesses in the Vietnamese ICT market.
According to a report of the US Department of Commerce, this country’s total foreign direct investment in Vietnam in 2006 was $10 billion and this number can double in 2007. Two-way trade revenue increased very quickly from $1.5 billion in 2001 to $9.7 billion last year.
These figures demonstrate the effective economic cooperation between the two countries and great potentials for cooperation in the future, especially as Vietnam has joined the World Trade Organisation (WTO).
At the dialogue, Nguyen Lam Thanh, Business Development Manager of Intel, revealed that Intel was developing well in Vietnam thanks to the Vietnamese government and Vietnamese partners.
Ho Thanh Tung, General Director of Oracle Vietnam and Indochina, said that the task that Oracle had to do in Vietnam now was seek opportunities and expand its Vietnamese market.
At the dialogue, Vietnam and the US talked about problems and difficulties that they have been facing during the process of cooperation.
Representative of the Corporation for Financing and Promoting Technology (FPT), Dan Phuong, mentioned three problems which had appeared during the process to infiltrate the US market of FPT: difficulties with getting visas to go to the US, international payment and the regulations on double taxing avoidance.
Hoang Tien, a representative of the Vietnam Post and Telecommunications Group (VNPT), asked: what American businesses and government agencies have experience in managing and developing a developed NGN-based telecom market?
Mr. Tien said that in Vietnam, the NGN (next generation network) technology infrastructure was ineffective. All telecom service providers in Vietnam have their own NGN, causing waste.
The US Department of Commerce’s Jamie Estrada presented six key issues that need to be improved to strengthen bilateral trade on ICT between the US and Vietnam: ICT infrastructure, network security, skills and training, software infringement, e-commerce, and government procurement.
“Positively dealing with those issues, Vietnam will deliver a strong message to the US and the world that it is serious about defining a strategic position in the globally-connected economy,” he emphasised.
After 15 hours of discussion, the dialogue closed at 4pm, September 18. Vietnamese and American attendants said that it was a creative, opening and effective form of dialogue.
Before attending this dialogue, the US side gathered more than 20 issues based on the feedback of American investors in the ICT field in Vietnam and those issues were solved at the dialogue.
At this dialogue, the goal and the determination of the Vietnamese government and businesses was expressed: Vietnam is ready to become another Malaysia in developing ICT and it is ready to reach the success of China and India in ICT.
Source: VietnamNet
Forex policy... and the purchasing power of the VND
VNECONOMY : 20/09/2007
Hisatsugu Furukawa, the Finance Policy Consultant to the Japan International Cooperation Agency (JICA), talks about the forex policy Vietnam is following and the suggestion for the new period.
VietNamNet Bridge briefs the conversation between a VN Express reporter and Mr Hisatsugu Furukawa.
What is your assessment about the forex policy Vietnam is pursuing and the current purchasing power of the local currency?
The government of Vietnam has been paying special attention to maintaining the purchasing power of the VND and curbing inflation.
Vietnam has been stabilising the value of the VND in comparison with the US dollar by applying the forex management scheme with set trading band, under which the VND can’t fluctuate within narrow bands. Vietnam also tries to keep control over the prices of key commodities and tariffs. The said policies have helped ensure the stability of prices over the last time.
The high inflation rate Vietnam has been experiencing comes from the main factors as follows: the world’s oil price increase, and the big domestic demand for housing and construction.
The State Bank of Vietnam and the Ministry of Finance have gained satisfactory achievements in the monetary market through foreign transactions like treasury bond issuance, government bond issuance and the decision to require higher compulsory reserve ratio. The said measures have shown their effectiveness, but they have made the management cost higher.
Moreover, the measures may increase risks in terms of payment and monetary risks if you use foreign short-term loans for long-term investment.
What would you say about the domestic purchasing power of the VND reflected in the CPI?
In Vietnam, the CPI seems to not sufficiently reflect the current domestic purchasing power of the VND due to the coverage and the contents of the basket of commodities serving the CPI calculation. The adjustment of prices may distort the calculation of the actual purchasing power.
As far as I know, the General Statistics Office GSO has been trying its best to heighten the truthfulness of the CPI to better reflect the domestic purchasing power of the VND. However, I think that Vietnam should regularly reconsider the selection of the commodities in the basket of commodities for calculating CPI. It is necessary to use the data about the current consumption situation based on a survey of households’ living standards
I also think that the housing leasing fee should be added into the basket of commodities for calculating CPI as unmovable assets play important roles in everyday life. It is necessary to reconsider the contents of the basket of commodities every five years, and to make an assessment on whether the CPI can truly reflect the everyday life of people.
Besides, as the prices of several kinds of food and foodstuffs fluctuate according to seasons, the CPI should be made public annually.
Source: VietnamNet
Over US$7bil for city on Red River bank
VNECONOMY: 20/09/2007
The Red River will become the centre of Hanoi with international financial buildings, high-class apartment buildings and parks along the rivers. Investment in this huge project is estimated at over US$7 billion, with 39,000 families being moved.
The Hanoi Department of Planning and Architecture on September 17 introduced its report on the Plan to develop the Red River, the section crossing Hanoi. This planning is made by Vietnamese and Korean experts, on 4,200ha of land and water surface, stretching 40km of Red River.
The plan to upgrade and develop the urban zone along the Red River includes four areas, totalling 1,500ha. The first area is from Chem to Thang the Long Bridge; the second from the Thang Long Bridge to the Chuong Duong Bridge; the third from the Chuong Duong Bridge to the Thanh Tri Bridge; and the fourth from the Thanh Tri Bridge to Bat Trang.
The second area is considered the centre of this project. It is also divided into two zones. The first zone, at 500ha, will be the centre of the city with complexes of international hi-tech zones and luxurious apartment buildings. The second zone, at 370ha, will have a residential area, stadium, international exhibition centre, tourism and entertainment zones.
According this plan, the banks of the Red River, the section crossing Hanoi, will be home to 97,000 households in the future, accounting for 50% of the area. The remaining area will be reserved for public works and trade – service centres. In the first phase, local residents will be resettled in apartment buildings near the Thang Long Bridge or those near the Thanh Tri Bridge in the second phase.
The planning also defines sites for the construction of parks, tourism and cultural zones. For example, Vong La would be developed into riverside ecological preservation area, Dong Anh as a complex of general sport parks, Ngoc Thuy as a resort, Long Bien as an ecological study and discovery site, Tu Liem as a riverside ecological recovery zone and Tay Ho as a park for urban residents.
Korean experts also introduced some measures to control flooding and prevent landslides for the riverside areas.
The total capital needed for this huge project is $7.099 billion, including $1.924 billion for construction, $1.564 million for site clearance and compensation for local residents. According to Korean experts, the project will raise private capital and the assistance of the State. Profit will come from the sales of land and houses.
According to Do Viet Chien, Deputy Director of the Hanoi Department of Planning and Investment, this is a complicated plan so experts needed up to 16 months for research. The plan will be adjusted and will be completed in November 2007 to submit to the Prime Minister for approval.
Hanoi and the Republic of Korea will join hands to carry out this giant project from 2008 to 2020.
The Hanoi Department of Planning and Architecture collects the opinion of local residents about this plan at the Trang Tien Exhibition House from September 17-29, 2007.
Source: VietnamNet
Giant GE to make big investment in Vietnam
16:29' 19/09/2007 (GMT+7)
VietNamNet Bridge – Colin Low, GE National Executive for Singapore, the Philippines and Vietnam, has not admitted anything, except the news about the working visit by GE’s Chairman and Chief Executive Jeffrey R. Immelt on September 28, during which he will meet government representatives and announce an important investment deal in infrastructure.
Colin Low, GE National Executive for Singapore, the Philippines and Vietnam
Vietnam’s media guess that the important investment deal Mr Low has mentioned is a project of many millions of dollars, following the heavy investment of other giants in the world, including Intel and Foxconn.
GE is a well-known US-based technology, telecommunication and financial service group, which has been present in Vietnam since 1993, even before the US lifted the embargo against Vietnam in 1994. In 2003, GE established GE Vietnam Company Ltd, 100% foreign owned, specialising in providing post sales services in health care, electric equipment and power. At the end of 2006, GE opened a representative office of GE Consumer Finance in Hanoi.
Mr Low said that four GE subsidiaries were present in Vietnam: GE Infrastructure (power, aviation, water), GE Industry (electricity, high-grade materials), GE Healthcare and GE Consumer Finance.
GE’s main clients in Vietnam include Vietnam Airlines (air carrier), the Electricity of Vietnam, Vietnam Railway Corporation, PetroVietnam (oil and gas), public and private owned hospitals.
When asked why GE decided to invest in Vietnam, Mr Colin Low said that the main reason was that Vietnam’s Investment Law had become open and protected the benefit of investors.
In fact, South Korean, Japanese and Taiwanese investors all eye Vietnam as an investment address because they want another non-China destination to set up their projects, because investors do not put all eggs into one basket in order to disperse risks. In general, foreign investors see Vietnam as a potential market for outward investment.
With the achievements of the four GEs in Vietnam, the group has every reason to be optimistic about its future performance in the country. GE’s total turnover was $62mil in 2006, and the average growth rate is at 20% per annum, or 3-fold higher than the GDP growth rate. Vietnam is now described as a market with great potential, which is now taking off.
Mr Low also highly praised the quality of the Vietnamese labour force. In Hai Phong city, which has developed industries, labourers there have been well trained to fit industrial production projects.
GE is considering the demand for chartering aircrafts from the national air carrier Vietnam Airlines in order to negotiate a contract on aircraft chartering, Mr Colin Low told the press on September 18.
He said that Vietnam Airlines needed to charter long-distance aircrafts for the direct flights from Vietnam to the US to be launched soon, and needs Boeings. Meanwhile, GE has 1,400 aircraft for lease.
GE once leased three aircrafts to Vietnam Airlines, and 16 of Vietnam Airlines’ operational aircrafts (Boeing 777 and Airbus 320) use GE engines.
(Source: Tuoi tre)
Back in December 2003
VIETNAM
AUSTRALIAN TECHNOLOGY HELPS MODERNISE THE MONETARY SYSTEM OF VIETNAM
On 17 December 2003 the State Bank of Vietnam issued new 50,000 and 500,000 dong polymer banknotes. At a press conference held by the State Bank, Governor Le Duc Thuy said that Vietnam decided on the change "to make the money structure more reasonable and to better fight against counterfeits". He also said the new Australian made polymer based notes were more durable, and to demonstrate he dipped one banknote into a glass of water. "People selling vegetables and fish in the market will be very happy with this money." he added to the amusement of those present.
As one of the fastest growing economies in South East Asia, Vietnam commenced its "doi moi" economic "renov ation" in 1986 shifting from a centrally planned to a more market driven economy. The introduction of polymer banknotes in Vietnam is a significant contribution to the reformation of the banking and monetary system. The population of Vietnam is approximately 80 million people.
The polymer banknote technology adopted by Vietnam is that which forms the basis of the Australian currency notes jointly developed by the Reserve Bank of Australia and the Commonwealth Scientific & Industrial Research Organisation of Australia ("CSIRO"). Since 1996 the technology has been marketed as Guardian® by Securency Pty. Ltd., a joint venture equally owned by the Reserve Bank and UCB S.A, a Belgian multi national.
Following several years evaluating polymer bank notes the State Bank of Vietnam Banknote Printing Plant conducted a trial printing in Vietnam in 2001. The results were very good and clearly showed the Vietnamese that polymer banknotes were worthy of further consideration. The Bank then conducted a "due diligence" programme by independently surveying a number of major central banks in countries where polymer banknotes are in circulation.
Introducing the polymer technology to Vietnam included the printing of a number of Vietnamese banknotes in Australia in order to train the Bank's printers. Further training of Vietnamese banknote printing specialists was undertaken in Vietnam by Australian experts. All printing is now being conducted in Vietnam on Guardian® substrate manufactured by Securency.
Securency Managing Director, Mr. Myles Curtis said, "the State Bank conducted a most rigorous examination of our technology which in reality took some years. We have been committed to this project for some considerable time and we are absolutely delighted at the results which clearly demonstrate the excellent relationship that Australia has with Vietnam. The people we have been working with in Vietnam have been very professional, very well trained and are very good at what they do." Mr Curtis acknowledged the important role Austrade has played and added " one should not underestimate the extremely high level of trust and integrity that must be established before a project like this can even be considered. As in all the countries we are working in, the support we received from the Embassy and the Department of Foreign Affairs and Trade has been extremely helpful".
Guardian® substrate is now used in the banknotes of more than 20 countries worldwide.
Vietnam money: dong rates rise on strong loan demand
Overnight lending rates in the Vietnamese dong firmed in the past week due to stronger demand for loans, especially from the corporate sector, bankers said Monday.
Three of Vietnam's four main banks offered overnight loans in dong at 7 percent on Monday, compared with a range of 3.7-5.0 percent last week. Dong overnight loans were being fixed at 6.51 percent, market data showed.
As of mid-September, outstanding loans in Hanoi totaled VND150 trillion, up 26 percent compared with the beginning of the year, the central bank's Hanoi branch said last week.
Lending in dollars, which accounted for 33 percent of the total loans, grew 23.3 percent, while deposits in both dong and dollars grew only 17.5 percent in in the period, indicating higher demand for imports, the bank said.
"Demand for dong loans usually soars in the fourth quarter as companies need funds to meet contract payments," a banker at a private bank in Hanoi said.
Deputy Prime Minister Nguyen Sinh Hung said last week Vietnam needed 554 trillion dong next year, or nearly 20 percent more than this year, to invest in major infrastructure projects, such as sea ports, roads and industrial parks.
The government aims to raise VND201 trillion ($12.4 billion) in 2008 from the private sectors and borrow VND40 trillion from state-run banks for its projects.
On the dollar front, several banks including Sacombank, VIB Bank, Eximbank and ABBank have raised interest rates on dollar deposits to raise more funds to meet higher expected demand from importers.
Most banks now offer 5.5 percent to 5.7 percent annual yield to 12-month dollar deposits, from 5.2 to 5.5 percent previously.
The Asian Development Bank said it had revised down Vietnam's current account balance in 2007, saying it would face a deficit equivalent to 5 percent of gross domestic product, from a small surplus of 0.2 percent previously forecast for this year.
Slowing exports – due to less sales of crude oil and seafood – coupled with rising imports have widened the trade gap, leading to the current account deficit, ADB said on Monday.
But it said overseas remittances – a key input of Vietnam's foreign exchange reserves – and tourist arrivals remained strong.
Using the State Bank of Vietnam and sources to calculate remittances, ADB said actual remittances for the first half of 2007 surged 53.4 percent from a year earlier to $2.9 billion. Remittances stood at $1.89 billion in the first half of 2006.
ADB said its own forecast of remittances for the whole of 2007 is $5 billion.
Source: Reuters
http://www.thanhniennews.com/business/?catid=2&newsid=32057
ADB predicts Viet Nam’s economy to expand rapidly
VNECONOMY updated: 18/09/2007
The Asian Development Bank (ADB) said that Viet Nam’s economy will continue to expand rapidly. In the Asian Development Outlook 2007 Update (ADO Update), which was released in Ha Noi on September 17, the bank said that the Southeast Asian nation’s growth accelerated in the January-June period at 7.9 percent, which is a half percentage point faster than a year ago.
ADB Deputy Country Director to Viet Nam, Dr. Omkar Shrestha, said that Viet Nam’s economic growth for all 2007 is forecast to reach 8.3 percent, unchanged from the ADO 2007 projection, which was released in March of this year.
According to the ADB, nearly all the economic expansion in Viet Nam came from industry and services, and the dynamism of private sector is noted with expansion of 20.5 percent, more than double the pace of state enterprises.
The bank also said assuming that Viet Nam’s WTO accession will help further integrate the economy into global business networks, encourage foreign direct investment and maintain the momentum for domestic reforms; Viet Nam’s economic expansion is expected to accelerate to 8.5 percent in 2008.
Regarding the country’s inflation, the bank said the inflation rate has shown upward tendency, with 8.3 percent in 2005, 7.5 percent in 2006 and 7.3 percent in August 2007. The bank said that the inflation rate is a concern but not alarming. The inflation level is expected to be contained at 7.8 percent for 2007 and is expected to be reduced further to 6.8 percent in 2008.
According to ADB Country Director to Viet Nam Ayumi Konishi, the situation is considered to be under control, although the relatively high level of inflation calls for the Vietnamese Government’s close attention.
“What is most important for Viet Nam continues to be the acceleration of reforms and faster implementation of development projects through simplification of procedures,” he said.
http://www.vneconomy.com.vn/eng/?param=article&catid=01&id=925f22236baa7b
Vietnam, the Asian choice for US companies: Industry Week
22:27' 06/10/2007 (GMT+7)
Granting investment license to Intel's project in Ho Chi Minh City
VietNamNet Bridge - Vietnam has quickly become a leading recipient of foreign investment by US companies, said Alex Bryant, President of the East West Associates (EWA), in h is article run by the online Industry Week on June 6.
The article notes that: "As a result of favorable governmental policies, a well-educated workforce and concern about China's rising costs, Vietnam has experienced a significant rise in direct foreign investment. These companies view Vietnam as a real alternative for establishing manufacturing and distribution centres, primarily for export.
Recent investments include Intel's project in Ho Chi Minh City with a total investment of US $1 billion. This investment is being followed by other hi-tech investments as well as prospective Intel suppliers.
Vietnam attracted more than US $10.2 billion in registered capital to carry out foreign investment projects in 2006 -- nearly $8 billion went toward 800 new projects and more than US $2.2 billion to 440 applications for capital expansion of existing projects.
During the last 2 years, Vietnam has yielded robust economic results and showed up strongly on investors' radars following WTO entry, hosting of the APEC meeting and the US government's approval of permanent normal trade relations.
The article outlines 6 key characteristics of the Vietnamese market for manufacturers considering establishing businesses in Vietnam as follows:
Reasonable labour rates and well-trained workforce
In comparison to many of its Asian neighbors, Vietnam has a relatively inexpensive labor rate. For factory operators, the average salary is US $200/month while key managers and senior engineers are paid US $1,500/month. Vietnam has a 48 hour work week and the government-mandated social programmes are approximately 25% of the salary costs. In comparison, China has a 40 hour work week and social costs are 50-60% of the operator's salary.
The Vietnamese workforce is well-educated and ambitious. The average age of an worker is 24 and a growing percentage of the workforce is comfortable with English as a second language due in large part to the availability of English language centres.
Tax incentives
In terms of economic development, Vietnam is now where China was 10-12 years ago, with the noted exception that policy makers in Hanoi have learned valuable lessons from the Chinese model.
The government has implemented an aggressive program of corporate income tax incentives. This program involves up to 4 years of tax holiday following (and including) the first year of 'carried forward' profitability. Thereafter, the tax rate is 1/2 of the nominal tax rate for a period of up to 7 years, with a total application period of up to 15 years. The nominal tax rate can be 10%, 15%, or 20% - depending on the industry sector, investment classification and location. The standard tax rate is 28%.
When a company is selecting the site for their investment, the various business parks should be visited and tax incentives of each discussed, as well as the criteria for obtaining preferential tax treatment. There are also duty free programmes for the importation of capital goods (new and refurbished).
"The Vietnamese government's tax incentives are among the best in Asia and companies recognise the financial impact these incentives will have to their bottom line revenue", says Mr Charlie Blocker, managing director, Gannon Pacific Group.
Infrastructure
Vietnam's infrastructure is developing rapidly to meet this new influx of foreign direct investment. While behind China, the Vietnamese government is committed to developing infrastructural balance, especially electricity and water supply, seaport services and telecommunication. Bilateral lenders and grants continue to be plentiful.
In the last 2 years, Vietnam has invested some 10% of GDP into its infrastructure. By 2012, Vietnam will have completed a major logistical milestone via deep water ports and surface transport -- this development will give Vietnam a huge competitive advantage and allow them to further support investors supply chain initiatives and exports to ASEAN, China and North America.
Intellectual property and legal infrastructure
In addition to meeting IP and legal requirements for WTO admission, the Vietnamese government has taken steps to protect IP and enacted laws providing specific protection for investors. The judicial system of laws affecting foreign investment has continued to see improvement, creating a more transparent and open legal framework for investment activities.
Last year, the government issued decrees to guide the implementation of the Investment Law and the Procurement Law. The National Assembly also approved new laws to make the legal framework more synchronic to investors: the Securities Law, the Technology Transfer Law, the Intellectual Property Law, and an amended Labor Code, which has new stipulations on strike issues.
Availability of existing manufacturing facilities
Vietnam has developed a relatively large number of Business Parks. The lease rates for land are generally less expensive than China, averaging US $20-25 per square metre for a 50 year lease. Lease rates in existing, more established parks are more expensive and are approximately US $40 per square metre.
Statistics from the Industrial Zone (IZ) and Export-Processing Zone (EPZ) Management Department of the Ministry of Planning and Investment show that in 2006, US $5.68 billion went to IZs and EPZs. This investment was for new projects and capital increases in present projects and was nearly twice the inflow in 2005.
Ba Ria-Vung Tau, Binh Duong, Dong Nai and Ho Chi Minh City were most attractive to investors with 213 projects and total registered capital of nearly US $2.58 billion - approximately 60% of the total FDI in IZs and EPZs.
One of EWA's clients, a US metal fabricator, wanted to establish a manufacturing facility near Ho Chi Minh City in order to take advantage of the seaport and ease of customs. Of the approximately 55 Business Parks located in the area, we narrowed the list to 3 qualified sites which met the client's needs. These parks were competitive in their services and are a good place for companies establishing business entities.
The author concludes by stressing that "Vietnam offers investors great economic potential and is a leading alternative for companies wanting to diversify their Asian investments. With an inexpensive labor force, exceptional tax incentives and a growing infrastructure, Vietnam will continue to offer investment opportunities for US companies."
(Source: Industry Week Online)
Manulife Vietnam Fund Management Company -----
HCM City (VNA) – Manulife Vietnam Fund Management Company announced last weekend the successful closing of its Manulife Progressive Fund (MAFPF1), having reached its goal of 25 million certificates each valued at 10,000 VND.
The fund attracted more than 1,000 retail and institutional investors. A general meeting of investors is scheduled for October 6 at HCM City’s Sheraton Hotel.
“The fund will give investors access to Viet Nam’s rapid economic development and the strong long term performance expected from its equity market,” said Fund Manager Mark Canizares. “ It will be one of the few such funds offered to Viet Nam’s investors that will be focused on Viet Nam equities.
MAFPF1 will choose companies with better corporate governance, high quality earnings growth and long-term potential. Investments will also go into companies with sound balance sheets and strong senior management teams that are likely to benefit from Viet Nam WTO’s accession.
“We are delighted that the fund has proven to be such a popular choice with investors and that we have been able to successfully close it in less than two months, in advance of our expectations. We believe this is a good time to be investing in this market for the longer term as Viet Nam is in the very early stages of its economic reforms,” said Gilbert Pak, General Director of Manulife Vietnam Fund Management Company.
“We believes that the equity market will continue to perform in line with the rapidly expanding economy and recent price corrections have made some shares especially attractive,” Pak added.
“We have a strong and proven record of providing effective wealth management and investment solutions for clients and we believe that makes for a compelling proposition for Vietnamese investors. Our investment principles are depth, discipline and focus. We will focus our investment strategies and a strong management team and that are likely to benefit from Viet Nam’s WTO accession”, Pak said.
On June 14,2005, Manulife Vietnam Fund Management (MVFM), a wholly-owned local subsidiary of Manulife Vietnam, was granted a licence to operate a fund management and investment-finance consulting business, further expanding the Canadian life insurance company Manulife Vietnam’s product offerings for its customers.
MVFM manages around 3,000 billion VND assets including bonds and equities.
Manulife Vietnam Fund Management Company -----
HCM City (VNA) – Manulife Vietnam Fund Management Company announced last weekend the successful closing of its Manulife Progressive Fund (MAFPF1), having reached its goal of 25 million certificates each valued at 10,000 VND.
The fund attracted more than 1,000 retail and institutional investors. A general meeting of investors is scheduled for October 6 at HCM City’s Sheraton Hotel.
“The fund will give investors access to Viet Nam’s rapid economic development and the strong long term performance expected from its equity market,” said Fund Manager Mark Canizares. “ It will be one of the few such funds offered to Viet Nam’s investors that will be focused on Viet Nam equities.
MAFPF1 will choose companies with better corporate governance, high quality earnings growth and long-term potential. Investments will also go into companies with sound balance sheets and strong senior management teams that are likely to benefit from Viet Nam WTO’s accession.
“We are delighted that the fund has proven to be such a popular choice with investors and that we have been able to successfully close it in less than two months, in advance of our expectations. We believe this is a good time to be investing in this market for the longer term as Viet Nam is in the very early stages of its economic reforms,” said Gilbert Pak, General Director of Manulife Vietnam Fund Management Company.
“We believes that the equity market will continue to perform in line with the rapidly expanding economy and recent price corrections have made some shares especially attractive,” Pak added.
“We have a strong and proven record of providing effective wealth management and investment solutions for clients and we believe that makes for a compelling proposition for Vietnamese investors. Our investment principles are depth, discipline and focus. We will focus our investment strategies and a strong management team and that are likely to benefit from Viet Nam’s WTO accession”, Pak said.
On June 14,2005, Manulife Vietnam Fund Management (MVFM), a wholly-owned local subsidiary of Manulife Vietnam, was granted a licence to operate a fund management and investment-finance consulting business, further expanding the Canadian life insurance company Manulife Vietnam’s product offerings for its customers.
MVFM manages around 3,000 billion VND assets including bonds and equities.
Monday sept 17,2007-
Viet Nam outlook stable, says Standard and Poor's
(17-09-2007)
Transactions at East Asia Bank in Ha Noi. S&P gives Viet Nam a "stable" outlook but cites the banking sector as an area of inadequacy in the economy. The nation’s banks, according to S&P, were "still adjusting to commercial operations from policy lending." — VNA/VNS Photo Tran Viet
HA NOI — US-based credit rating service Standard and Poor’s (S&P) says the economic outlook for Viet Nam is stable but warned of continuing structural impediments in the nation’s economy.
S&P affirmed its BB/B foreign currency and BB+/B local currency sovereign credit ratings for Viet Nam, now experiencing annual growth rates of more than 8 per cent.
"The stable outlook on the ratings encompasses our expectation that the momentum of structural reforms in Viet Nam will be sustained in the near term," S&P said in a statement released from Singapore. "This will further strengthen investor confidence in the country and help maintain high rates of economic growth."
However, S&P warned that Viet Nam’s "productivity is held down by structural impediments and the lack of a sophisticated legal and regulatory system."
One "area of inadequacy" cited was the banking sector in which key institutions were "still adjusting to commercial operations from policy lending."
S&P credit analyst Kim Eng Tan said that the ratings on Viet Nam reflected its low-income economy and developing financial system, both of which increased the vulnerability of the economy to severe shocks that could significantly increase the public financial burden.
S&P said the outlook could be revised upward if Viet Nam accelerates the reform process or strengthens financial stability, such as by "substantially improving transparency in the banking system through the successful equitisation of one or more large State-controlled banks." — VNS/AFP
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THURSDAY SEPT 13,2007-------------
Banking & Finance
Urgently heightening the international position of VND
VNECONOMY updated: 13/09/2007
The dollarisation in Vietnam’s national economy seems to be eased recently, but it remains the big challenge for Vietnam’s banking system to integrate the currency into the world.
The dollar – everywhere and at all times
In 1992, the dollarisiation in Vietnam was described as ‘serious’ with 41% of deposits at banks being in dollar. The figure now is 25-35%, which shows that Vietnam has been successful in combating dollarisation. However, no one can deny that dollars are being used everywhere and are present in all transactions.
Under the current regulations on forex management, only the institutions and individuals which are allowed to collect money in foreign currencies in Vietnam’s territories can place advertisement pieces and quote goods’ and services’ prices in foreign currencies. However, in fact, price quotations in foreign currencies can be seen everywhere in big cities like Hanoi and HCM City.
Nguyen Thi Thu, the owner of a luxury jewellery shop at Diamond Plaza, said that she knew the regulations on quoting prices in VND. However, her customers are mainly international guests, therefore, the price quotation should be in dollars for better understanding. Other trade centres and hotels in Hanoi and HCM City all calculate hotel room rates and other fees in foreign currencies. In order to avoid punishment, they quote prices in both VND and US$.
Computer trading firms have been found as the entities most often violating the regulations on price quotation. Even a quotation in both VND and US$ is considered as violating laws.
Dim role of management authorities
In HCM City, there are 800 operational transaction points serving money exchange, most of which are gold shops. According to the HCM City Branch of the State Bank of Vietnam, if banks want to provide money exchange services, they have to be licenced by the state bank. Meanwhile, gold shops only need to fulfill procedures to become bank agents to be eligible to provide the services.
Under the current laws, violators of the regulations on price quotation and illegal money exchange have to pay a fine of between VND5-12mil. However, the HCM City branch of the state bank has discovered and imposed a fine on only one case so far this year: a home appliance centre in the city.
Explaining this, Nguyen Thi Minh Lan, Head of the Forex Management Division under the HCM City branch of the central bank, said that the thin labour force of the division did now allow it to punish all violators, especially as violations have become spread out.
Le Xuan Nghia, Head of the Banking Development Strategy Department under the State Bank of Vietnam: It is necessary to limit transactions in foreign currencies
The dollarisation has made monetary policies more complicated as there always exist two kinds of interest rates, the rates for foreign currency deposits and loans, and for local currency, which do not always go in the same direction.
A dollarised economy would cause exchange risks for enterprises and commercial banks. The international exchange market always fluctuates as nations all float the exchange rates.
The dollarisation has generated the habit of using foreign currencies in transactions. Therefore, the important measure in order to curb the dollarisation is not to accept deposits in foreign currencies. Most countries in the world do not accept deposits in foreign currencies. In the immediate time, it is necessary to reconsider the licencing of foreign currency trading, strictly ban advertisement and price quotation in foreign currencies. The central bank should raise the required compulsory reserve ratio of foreign currency deposits, a preparatory step to prohibiting foreign currency deposits in the future.
However, all the above mentioned measures need to be carried out on the basis of the controlled inflation. It is very important if Vietnamese people have confidence in the local currency and use VND in payment and savings.
Dao Hong Chau, Deputy Director General of Eximbank: Vietnam needs to build up the prestige of the local currency
The dollarisation will continue if people do not believe in the stability of the VND. Banks now still provide inconvenient services, and as a result, people don’t make foreign currency transactions via banks. A Can Tho-based company has to make payments to a HCM-City based company, and it takes cash to HCM City instead of using banks’ services because it believes that this takes less time.
In fact, the dollarisation not only originates from the demand and habits of the public, but from credit institutions as well. You may see that the information about the VND/US$ exchange rate is always put on the top of thelectronic boards at banks’ transaction points.
Source: VIR
THIS IS OLD NEWS -BUT very interesting.
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Thanh Nien
Editor-in-Chief: Nguyen Cong Khe
248 Cong Quynh St . , Distr. 1, Ho Chi Minh City, Vietnam.
Tel: 84 8 8 394 046
Fax: 84 8 8 322 025
Thanh Nien is the tribune of Vietnam’s Youth Association
Publication permit No. 14/GP-BC, granted by Press Department, Vietnam Ministry of Culture and Information.
Hot News: Citibank, Vietnam -
Last Updated: Tuesday, May 15, 2007 11:44:03 Vietnam (GMT+07)
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Gov’t approves over US$80 mil to drill for oil
The Vietnamese government has approved an US$82.5 million plan to exploit the Phuong Dong oil field in waters off the coast of southern Vietnam.
Under a production sharing contract, the state’s oil and gas giant PetroVietnam will hold a 17.5 percent interest in the Phuong Dong drilling, 150 km southeast of Vung Tau City. Japan-Vietnam Petroleum Co. Ltd. (JVPC) will hold a 46.5 percent interest in the project while ConocoPhillips will take on 36 percent.
Under the decision approved Monday by Deputy Prime Minister Nguyen Sinh Hung, most of the capital will be spent on a drilling platform and a pipeline system to transport oil and gas from the field to a central platform at the Rang Dong oil field.
Commercial production at Phuong Dong is expected to begin in the end of the third quarter next year.
According to JVPC appraisals, Phuong Dong is home to an estimated 36.2 million barrels of oil and 3.16 billion cu.m of natural gas.
JVPC is a joint venture of Mitsubishi (51 percent) and the Japan National Oil Corporation (49 percent).
In related development, PetroVietnam yesterday launched a new arm, PetroVietnam Exploration and Production Corp (PVEP).
The VND10 trillion (US$625 million) PVEP is a merger of PetroVietnam’s Oil & Gas Exploration and Production Company and the PetroVietnam Oil & Gas Investment and Development Company.
Between January and April this year, crude oil – Vietnam’s top export item – earned $2.36 billion, the country’s highest export turnover. Though the figure was a slight year-on-year drop in both volume and value, analysts attributed the dip to declining global prices.
Reported by M.Q. – Compiled by Dong Ha
US-based EurOrient to invest US$1 billion per year in Vietnam
The Associated PressPublished: September 11, 2007
HANOI, Vietnam: U.S.-based private investment banking firm EurOrient plans to invest US$1 billion a year in Vietnam in the coming years, state media reported Tuesday, citing a company official.
Ron Nechemia, chairman and general director of EurOrient, said in an interview with the Vietnam Economic Times that his firm is interested to invest in the financial services, energy, port, transportation and telecommunications sectors in Vietnam.
"We plan to invest US$1 billion in three or four projects each year," Nechemia said.
EurOrient, which is based in California, will soon invest in financial services projects in Vietnam and set up a joint venture with a local partner to invest US$120 million to build a wind-generated electricity plant with a capacity of 120 megawatts, Nechemia added.
Terms of Use
Vietnam continues to attract large investments in tourism
11:12' 11/09/2007 (GMT+7)
VietNamNet Bridge – Vietnam has recently attracted many domestic and foreign investors in the tourism and the service sector with a number of big projects in tourism centers in provinces and cities nationwide.
According to the Ministry of Culture, Sport, and Tourism of Vietnam, the country has attracted large investments to build resorts or luxury hotels such as a top-end hotel in Danang initially capitalized with 200 million USD by KOK (from the US) in Danang, and a series of tourism projects capitalized with 300 million USD by Tin Nghia Co., Ltd in Dong Nai, Binh Thuan, and Da Lat (Lam Dong). The largest recreation area in Phu Quoc Island is capitalized with 68 million USD.
Along with encouraging investment in new tourist areas, cities and provinces are also focusing on upgrading existing tourist products, especially in the Mekong Delta River provinces, where National Tourism Year 2008 will take place.
Vietnam’s tourism image has been increasingly promoted domestically and overseas. Recently, the Government has issued guidelines for advertising Vietnam’s people and country on CNN TV over 13 weeks, with 182 times.
Furthermore, Vietnam has for the first time been included among the 20 destinations most favoured by tourists, according to a 2007 survey by Conde Nast Traveller. This is considered a positive sign for Vietnam’s tourism sector.
This was sent to me by a friend today----------
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Exchange rates may trip economy in 2007
21:31' 13/05/2007 (GMT+7)
VietNamNet Bridge - State Bank difficulties in managing foreign exchange rates over the past seven months could remain the biggest challenge to the economy in 2007, according to a United Nations economic survey.
The United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) has forecast that major currencies ! in the r egion will appreciate as a result of capital inflows. UNDP's senior country economist Jonathan Pincus said Vietnam's success in attracting foreign direct investment, portfolio investment, remittances and official development assistance would cause the Vietnamese dong to appreciate against the US dollar if the State Bank did not introduce appropriate checking measures.
So far this year, the dong has gained 0.3 per cent against the US dollar, currently sitting at VND16,047 per dollar despite an earlier State Bank plan to slightly depreciate the local currency by 1 per cent to maintain trading competitiveness.
Since September 2006, local banks have experienced US dollar surpluses for the first time with massive dollar inflows into the booming stock exchange and sharp increases in FDI attraction. This situation has put pressure on the State Bank, as the ultimate purchaser of local banks' dollar surpluses, to revalue local currency.
"Exchange rate management has become more challenging with the massive growth of local bourses, because a minor change in the rate could have a wide-range of effects," said Phi Dang Minh, head of the State Bank's Foreign Exchange Department.
UNESCAP's statistics show by 2006, with more than 200 listed joint stock companies, Vietnam's market capitalisation stood at just $14 billion, or 22.4 per cent of GDP. But, according to the World Bank's latest report, market capitalisation to date has reached $24.4 billion - 39.2 per cent of GDP. According to estimates, from November 2006 to March 2007, foreign investors have injected about $4 billion into local bourses.
Additionally, over the first four months of 2007, Vietnam has lured $3.51 billion via foreign direct investment, rec! ording 5 4.7 per cent growth against 2006.
According to an official from Vietcombank's Foreign Exchange department, local banks are still in dollar surpluses, resulting in banks' lower dollar trading price than State Bank's official rate.
In early 2007, local banks were allowed by the State Bank to trade up to 0.5 per cent either side of the daily published official rate from a previous percentage of 0.25.
"A wider trading band for domestic transactions is a good thing to the extent that it allows minor adjustments to take place in the official market rather than in the informal market.
"But, careful supervision of banks and development of more sophisticated instruments to control the money supply are needed to ensure that financial liberalisation does not weaken the capacity of the State Bank to manage the exchange rate while keeping inflation in check," said Pincus.
(Source: VIR)
I hear ya ..as we have talked before it seems that we read one thing one way and then in a day or two or a couple weeks or so something else comes around that seems to mean the opposite..But..USUALLY numbers dont lie...LOL...
Anyway as I have said before..Thats the problem with dealing with countries that are communist, dictatorships, kings..you never know if what you read has any truth to it or not...
But for whatever reason..I think one day or the other we will make some money here..So that be that...
OK.Lets see what you all think about that last post # 889-There are some Financial minds out there, so lets get some feedback.
Banking & Finance
Stronger dollar may push gold prices higher: experts
VNECONOMY updated: 10/09/2007
Local gold prices hit a one-year high yesterday, with experts predicting further gains due to global commodity trends and a stronger US dollar against the dong.
Bao Tin Minh Chau yesterday quoted the precious metal at VND13.42 million a tael, up VND120,000 over Thursday.
A tael is equivalent to 1.2 ounces.
"Many people are buying up gold on speculation that it may touch VND14 million soon," said Tran Huu Dang, who oversees trading at the Ha Noi-based company. Bao Tin Minh Chau sells about 400-500 taels a day.
In the world market, spot gold was trading at US$693.00 an ounce, just off the peak of $697.70 on Thursday – its highest since May 2006. In domestic terms, global prices are now equivalent to around VND13.6 million a tael, said Dang.
Local prices have not yet caught up with international levels but may eventually exceed spot gold due to heavy speculation in the domestic market as warehouses begin offloading their stockpiles, said Dang.
Another factor adding to speculation over surging gold prices is a strong US dollar, which makes importing the commodity more expensive in dong terms.
Vietcombank yesterday quoted the forex rate at VND16,240-16,246 per US dollar, up from around VND16,210 in mid-August.
The greenback has strengthened over the past three weeks due to exceptionally high demand for dollars among importers, said a State Bank of Viet Nam (SBV) official.
In response, the central bank has actively bought and sold the greenback in efforts to keep the exchange rate stable, said Nguyen Ngoc Bao, monetary policy director at the SBV, yesterday.
The SBV, though, maintains a controlled forex policy and has actively depreciated the dong against the greenback by about 1 per cent a year in order to encourage exports.
Pham Thanh Ha, head of foreign exchange at Vietcombank, yesterday indicated that the dollar often strengthens against the dong late in the year on a seasonal upswing in demand, which could put the central bank under greater pressure to stabilise the market.
"Banks are not short of US dollars yet," he said. "However, we are not in such a long position for dollars like we were at the beginning of the year."
Source: Vietnam News
You are so right, IMO. It's not a matter of if but when. Patience is of GREAT value with both of these plays.
My Pleasure- I was thinking -we know IRAQ WILL influence the World with the OIL & GAS,And This will have an effect on the DINAR.But has anyone really thought about HOW the WORLD IS being influenced as pertaining to VIET NAM.Look at the Companies and COUNTRIES that are opening Offices and Factory's there RIGHT NOW. Take a look at their TOURIST TRADE.Even the STOCK Market there is making OUTSIDE Investors Money.It's for these reasons I think the DONG could do a revaluation AHEAD of the Iraq Dinar. Also They ARE in the WTO Now and that's a big step.There is a lot to consider as to what to hold more of at this time- DINAR or DONG. jmo. R
Theank you RICK C. Interesting reading.
My thoughts on this PARAGRAPH- The survey reveals that although 95 per cent of unionised workers get higher wages than the minimum wage of VND800,000 (US$50) a month, only 70 per cent of unionised workers have had their wages revised in the past three years, while the inflation rate and Consumer Price Index have increase by a minimum of 7 per cent and 6 per cent respectively each year.
OK- Lets break it down- on this part=
"unionised workers get higher wages than the minimum wage of VND800,000 (US$50) a month "
We can see here what the MINIMUM WAGE IS- I believe this will help us, as Dinar investors as Very phew Iraq citizens can support their family's on these wages.And The Oil companies will offer more to get their oil to MARKET FASTER. and will have to also hire PRIVATE SECURITY FIRMS-WHO GET PAID IN US DOLLARS.
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"Unionised workers "- I believe UNION'S will be looking for HIGHR RATES as they know of the Huge PROFITS that the Company they work for will make. And they don't want a UNION WALK OUT.
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" only 70 per cent of unionised workers have had their wages revised in the past three years,"--Here it looks like the WORKER's who PLAY BALL have gotten the Raises, Nearly 1/3 of them are still making the SAME WAGES- HOW long do you think that will continue, as they see the Big bucks going to others.
UNION worker's are supposed to make the same wages, IF they do the SAME JOB.
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"while the inflation rate and Consumer Price Index have increase by a minimum of 7 per cent and 6 per cent respectively each year"
So INFLATION has cost them 6-7% of their wages- So it cost approximitly 48,000 DINARS MORE Now to take care of their family.I don't think this will go over big much longer.
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1 way the GOVERMENT & OIL & GAS companies can get their product to market and help put a end to UNEMPLOYMENT is to offer FAIR MARKET WAGES , Instead of having people having to turn to OTHER MEANS of making a living.
Well these are my thoughts on this- perhaps others will offer thier thought's as well. Rick.c
READ THE 3RD PARAGRAPH FROM THE BOTTOM------------
Friday, September 07, 2007
POLITICS AND LAWS
Labour unions failing to meet workers’ needs
(04-09-2007)
HA NOI — Though most foreign direct investment enterprises have labour unions, they do not seem to be working on all cylinders to fight for workers’ rights.
Recent research on the effectiveness of labour unions in 60 different foreign direct investment enterprises (FDI) employing a total of 80,000 workers, shows that 80 per cent have labour unions, only half of which have a working agreement.
In fact, the agreements appear to be perfunctory at best, as working conditions and compensation differ only slightly from those under the labour law. More than 10 per cent of the workers questioned were not certain if their companies had a working agreement.
In addition, sums for expenses such as lunch or transportation were not mentioned in agreements. According to experts in the investigation delegation, enterprises make these payments to workers as grants or management tools, rather than carrying out their responsibilities to their employees.
According to a survey at FDI, among enterprises with labour unions, only 59.3 per cent of workers were members of the union, and 28.3 per cent of them wanted to join, 5.9 per cent did not care and 53.3 per cent did not respond when asked about participation in labour union activities. This illustrates the less than prominent place labour unions hold in the work place.
The main reason for labour unions’ weak showing within enterprises can be attributed to the fact that all of its members are also employed by the company.
They do not have time to focus on labour union activities and lack experience in negotiations that could lead to favourable conditions being added to the working agreement, said Truong Ngoc Hien, head of the Labour Union from Bac Ninh Province, 30km east of Ha Noi.
"None of the staff at district levels is qualified enough to deal with the problem. We now urgently need people with legal knowledge to use better negotiation tactics when dealing with smart employees," said Hien.
The province has been a rising destination of FDI investments and has recently played host to a number of disputes and strikes. While disputes are an important issue in FDI enterprises, the province has yet to form an authority for dispute settlement.
There have been more than 8,100 investment projects nation-wide which provide jobs for more than 1.4 million people. FDI enterprises employs 1.1 million of these workers. Among thousands of disputes and 1,600 strikes in the past 10 years, 70 per cent occurred in an FDI enterprise.
According to Ha Van Cuong, an official of Ha Noi Industrial Zones’s Labour Union, most enterprises in industrial zones are FDI. The activities of labour unions are funded predominantly by the contribution of workers and support from enterprises.
"It is very difficult to conduct labour union activities since we don’t have independent finance sources." said Cuong.
The survey reveals that although 95 per cent of unionised workers get higher wages than the minimum wage of VND800,000 (US$50) a month, only 70 per cent of unionised workers have had their wages revised in the past three years, while the inflation rate and Consumer Price Index have increase by a minimum of 7 per cent and 6 per cent respectively each year.
Experts all agree that workers belonging to labour unions in FDI enterprises should be more active.
Official of Hai Duong Province’s Labour Union, Vu Quang Binh, said: "It is important for labour unions at enterprises to hold periodical meetings between employers and employees to discuss conditions and solve disputes properly." — VNS
Citibank issues first bond in Vietnamese dong
VNECONOMY updated: 06/09/2007
Citibank has launched its maiden domestic offering in the Vietnamese debt market, the first long-term negotiable instrument to be issued in Vietnamese dong.
The inaugural issue was a 400 billion VND (22 million USD) floating rate issue with a tenor of two years, according to a Citibank press release.
The certificate can be sold back to Citibank at each payment date after a certain holding period.
“Citibank is proud to issue its maiden Vietnamese dong bond. The issue, launched on Sept. 5, adds diversity to the market. It will also help to develop the local bond market. This longer tenor instrument will offer financial institutions an opportunity to invest longer term with insurance in the local market still predominantly via the money markets,” said Charly Madan, chief for Citibank Viet Nam.
With branches in Ha Noi and Ho Chi Minh City, and a nationwide partnership network that covers all of Viet Nam’s 64 provinces, Citibank offers a wide range of banking services, including currency transactions, hedging, cash management including access to ATMs, trade services, short and medium-term loans in foreign currency and Vietnamese dong to State-owned enterprises, multinationals, financial institutions and private sector borrowers.
Source: Vietnam Agency
Business
Viet Nam, Dubai trade chambers ink deal
VNECONOMY updated: 05/09/2007
The Viet Nam Chamber of Commerce and Industry (VCCI) and its counterpart in Dubai, the United Arab Emirates (UAE), signed an agreement to boost cooperation at the Viet Nam-UAE business forum in Ha Noi on Sept. 4.
According to VCCI Chairman Vu Tien Loc, Dubai will act as an important gateway for Vietnamese goods as it is one of the world’s largest trading centres.
Since the two countries initially signed a trade agreement, two-way trade has witnessed significant growth, reaching the 200 million USD mark in 2006, Loc said.
Viet Nam has opened consulate, representative offices and a trade centre in Dubai to foster Vietnamese businesses’ operation in UAE. However, Loc said, economic and trade relations between the two countries are still languishing below their potential, citing the lack of a UAE-invested project in Viet Nam to date.
UAE Minister of Economic Sheikha Lubna Al Qasimi told the forum that her country wants to develop a multi-sided economic cooperation with Viet Nam, especially in conducting joint projects to seek investment opportunities.
She also called upon Vietnamese companies to invest into construction, finance and banking, insurance, petroleum, information technology, transportation, tourism and real estate in the UAE.
Source: Vietnam Agency
at least it is on there minds, and they aren't ignorant. Hopefully they do the right thing here and burn some of that VND.
It appears a lot of folks are loosing interest in this board, not many posting here any more.
Thanks for all the info.
Today: 05-09-2007
VN - WTO
New hope for WTO commitments
VNECONOMY updated: 16/07/2007
The decree guiding the implementation of Vietnam’s WTO commitments will be issued soon to clear new hindrances in the investment environment in Vietnam.
Vietnam has been a member of the World Trade Organisation (WTO) for half a year but the implementation of its commitments on business rights for foreign investors is not smooth yet.
At the Vietnam Business Forum (VBF) in Hanoi in May 2007, lawyer Fred Burke, head of the working group on production and distribution of VBF, said that many localities had refused to grant investment certificates to foreign investors, even in the fields of business that Vietnam committed to open immediately after becoming a member.
Recent problems associated with the performance of investment commitments of Vietnam originate from a very old reason: a lack of guidance documents. In addition, some contents that Vietnam commits to implement are contrary to regulations in some laws which have not been amended yet. This has been embarrassing for some state agencies but they have done nothing but sit and wait for instructions.
In this situation, the decree guiding the implementation of some commitments of Vietnam to the WTO will be issued in July or August and it is expected to help partly clear hindrances to facilitate the implementation of investors’ business.
The third draft of this decree, which was made public by the Ministry of Planning and Investment, has been looked at by VBF. Thus, once the decree is issued and if it is carried out seriously, the implementation of WTO commitments of Vietnam will be very favourable.
The biggest problem is the difference between some commitments and some current rules and this problem has been solved by the decree.
The draft decree confirms: “All WTO commitments of Vietnam must be explained, applied and implemented not contrary to regulations at the commitment table on services, the WTO accession report and related documents. In case of differences between this decree and other commitment documents, the commitment documents will be applied.”
The draft decree also abolishes regulations in the Vietnamese legal system that are contrary to the WTO accession report and the regulations in the decree.
Some problems in the Enterprise Law 2005 will be also solved, such as the number of representatives required to organise a meeting, the form to approve decisions, and the authority to make decisions of the member council, shareholders meeting.
At the same time, the draft decree also defines what a Vietnamese firm is and what a foreign-invested firm is based on the minimum ownership rate of 51% of capital or shares. This will help minimise confusion in case Vietnamese firms have shares owned by foreigners or vice versa. This is very meaningful for foreign investors, especially those operating in retailing. Because according to the draft decree, if they hold less than 51% of shares in a retailing company, their operations will not be restricted like foreign companies.
At present, licencing agencies in provinces are embarrassed when they receive projects that register to operate in various fields which are opened at different levels, especially when foreign investors have purchased stocks of local firms doing business in different areas. For this issue, the draft decree stipulates the use of the regulations of the area that is restricted the most.
If the investment conditions in the commitment table on services are less advantageous than in legal documents of Vietnam, the document with more favourable conditions will be applied. In addition, investment operations in all fields that are not mentioned in the commitment table on services, the Investment Law, Enterprise Law and other legal documents will be used.
The draft decree also includes the list of areas that are restricted and foreign investors are not allowed to participate in and local enterprises operating in the fields which are not allowed to sell stocks to foreigners. However, the draft also confirms that foreign investors are allowed to buy shares and contribute capital in all the areas that Vietnamese laws don’t prohibit, even though they are not named in the WTO commitment table on services.
This decree is expected to clear many hindrances which have been formed by the habit of “waiting for guidance” of state agencies. However, this will be only a temporary solution because it is unsuitable to the general legal rules.
In principle, the decree has a lower legal value than law so it can’t nullify the contents defined by the law. Thus, the draft decree abolishing some contents of the laws, though they are contrary to WTO commitments of Vietnam, is not good. The decree needs to be upgraded into a law or all the current laws need to be amended to ensure the unification of the legal system of Vietnam and Vietnam’s WTO commitments.
Wednesday September 5, 2007
Vietnam bullish on foreign investment
KUALA LUMPUR: Vietnam is bullish about attracting foreign investment with the latest change in its economic policy where foreign companies will enjoy the same benefits and incentives as local enterprises.
According to the embassy of the Social Republic of Vietnam trade counsellor Nguyen Thi Coi, foreign investments reached an all-time high of US$10bil in 2006 and are expected to rise to US$16bil this year with Malaysia being the second largest investor from Asean.
“Malaysian SMEs (small and medium-scale enterprises) have 223 projects in Vietnam to date with investments amounting to US$1.5bil and concentrated in food, garments, shoes and semiconductor manufacturing,” she said at the preview of the Global SMEs 2007 anchor event, Invest in Vietnam – Rising Star of Manufacturing Base.
The three-day Global SMEs 2007, the eighth International Strategic Partnership and Business Networking Trade Fair for SMEs, starts tomorrow at the Matrade Exhibition and Convention Centre.
Organising chairman Datuk Syed Amin Aljeffri said foreign participants had taken up 30% of the 350 exhibition booths. The countries represented included the United States, Vietnam, Taiwan, China, Sri Lanka, Poland, Zimbabwe and Bangladesh. Participating sectors include IT services, trading and manufacturing.
“Sri Lanka, which is seeking to strengthen bilateral relations with a large trade mission to Malaysia, is a new participant at this fair,” he said.
Amin said the trade fair would also feature a forum and a session on tax planning based on the Budget 2008 announcement on Sept 7.
Held concurrently with the fair is the SME ICT Week 2007 by MCA ICT Resource Centre (MIRC) from Sept 3 to 8 covering SME ICT Global Leadership Forum, MIRC Chinese Seminar and Taiwan Innovation Pavilion.
Another highlight of the fair is the Golden Bull Award 2007 Gala Award Presentation to recognise outstanding achievements of local SMEs.
The trade fair is set to attract double the 10,713 trade visitors recorded last year.
vietnam chamber of commerce & industry
Posted: 04-09-2007 , 12:35 GMT
dubai chamber signs mou with vietnam chamber of commerce & industry
Dubai Chamber of Commerce & Industry yesterday (Tuesday) signed a Memorandum of Understanding (MoU) with the Vietnam Chamber of Commerce & Industry in Hanoi, as part of the official visit schedule of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, to Vietnam. HH Sheikh Mohammed leads a high-ranking delegation of sheikhs, ministers and businessmen to Vietnam with the objective of boosting bilateral economic, trade and investment relations between the UAE and Vietnam on the government and private levels.
The MoU was signed by H.E. Obaid Humaid Al Tayer, Chairman of Dubai Chamber of Commerce & Industry, and HE Dr. Vu Tien Loc, Chairman of Vietnam Chamber of Commerce & Industry.
The agreement stressed the need for activating and enhancing economic cooperation and commercial promotion between the two chambers of commerce, opening new channels of contact between their members and businessmen with the aim to generate effective economic partnerships, exchanging information about trade and customs legislations in both countries, participating in trade fairs and economic conferences, encouraging visits of trade delegations and missions, enhancing trade volumes, setting up joint ventures, as well as introducing and benefiting from the investment opportunities available in both countries and in different economic sectors.
Al Tayer, who is also heading the UAE Businessmen Delegation accompanying His Highness Sheikh Mohammed to Vietnam, highlighted the importance of the MoU signed between Dubai Chamber and Vietnam Chamber as one of the anticipated achievements of the UAE delegation’s visit. He stressed the agreement’s main objectives in boosting the economic and trade cooperation, increasing the values of bilateral trade and attracting Vietnamese investments to the UAE.
“Signing the MoU between Dubai Chamber and the Vietnam Chamber prompts us to introduce the Vietnamese companies to the investment opportunities available in the UAE, Dubai in particular, in the fields of banking, finance, services and logistics, benefiting from the investment incentives, facilities and outstanding services that Dubai Government and Dubai Chamber offer to local and foreign investors,” Al Tayer added.
He noted that the signing of the MoU would help strengthen the commercial ties between the two business communities in Vietnam and Dubai, as Dubai’s total non-oil foreign trade with Vietnam reached AED 1.14 billion in 2006 ($ 312.5 million).
HE Dr. Vu Tien Loc, Chairman of Vietnam Chamber of Commerce & Industry, stressed the importance of the MoU signed with Dubai Chamber due to its expected impact on the development of the bilateral trade ties between the business communities in both countries. He highlighted the importance of establishing economic partnership between the two countries due to the significant strategic location of the UAE and Dubai as one of the international business hubs in the region, especially in trade, finance and logistics sectors.
“Signing the MoU with Dubai Chamber would help enhance our bilateral relations and introducing the Vietnamese business community to Dubai which enjoys an ideal environment for investment. The agreement would be a key driver that motivates further coordination and cooperation between the two chambers and the Vietnam Trade Office, Vietnamese Trade Center and the Consulate General of Vietnam in Dubai, for the purpose of improving bilateral trade between the two countries,” said Dr. Loc.
© 2007 Al Bawaba (www.albawaba.com)
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