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State Bank keeps tight lid on forex rates
15:50\' 21/12/2007 (GMT+7)
VietNamNet Bridge – The US dollar has remained weakened internationally since September, and the Vietnamese dong, its foreign exchange rates largely pegged to the value of the greenback, has been under strong pressure to appreciate despite Government efforts to keep it in check.
Economists are expressing doubts over the State Bank of Viet Nam’s long-term ability to stabilise the dong.
HSBC economist Prakriti Sofat, in a November 29 report, said, "Double digit inflation and the risk of [inflation] in the teens suggest that it’s only a matter of time before the central bank gives up its policy on dong appreciation."
Yesterday, the central bank announced a daily inter-bank exchange rate of VND16,114 to the dollar, while Vietcombank was listing an exchange rate of VND16,033/16,053. By comparison, Vietcombank offered rates VND16,215/16,248 on September 6.
Vietnamese banks are not allowed to set exchange rates beyond a 0.5% band above or below the State Bank daily rate, which has barely budged since the beginning of this year, despite the dollars plunge against other worldwide currencies, from the euro to the yen to the Thai baht.
The pressure can be seen on the street market in currency, where gold shops were quoting the greenback at VND16,040/16,060 yesterday, much lower than the official rate.
"If Vietnam continues keeping its nominal exchange rate artificially stable, we will pay the price when importing goods. Domestic prices will surely face the danger of increasing," Vo Tri Thanh, a senior economist with the Central Institute for Economic Management, told Viet Nam News.
The State Bank finds itself stuck between the need to curb inflation and the need to promote exports and keep the exchange rate stable against strong capital inflows from offshore.
"A conscious effort by the Government and the central bank to tighten monetary supply to curb inflation pressure seems in the cards. I suggest the State Bank choose to keep local liquidity tight in 2008, limiting intervention in the USD/VND market," wrote Standard Chartered Bank economist Tai Hui in late November.
Sure enough, the central bank has bought up dollars and tried to manage the supply of dong in circulation by issuing bonds and through regulations requiring commercial banks to increase compulsory reserves, improving their risk management but also sopping up excess liquidity.
While the State Bank has the power to keep the nominal exchange rate stable, real exchange rates are another matter. The real exchange rate can be viewed as the nominal exchange rate - domestic inflation + external inflation. It comes into play in what exporters and importers pay in cross-border transactions.
"Obviously, there is confusion between exchange rate and monetary policy," Thanh said. "If the State Bank allowed a flexible nominal exchange rate, it would be much better, I think."
It would allow, the central bank as well as the Government to pay more attention to reigning in inflation instead of exchange rate stability, he added.
"It would be OK if Vietnam manages growth rates of around 8-8.5%."
If the State were to let the dong appreciate by 1% versus the US dollar, it could temper inflation by 0.6-1 percentage points over a 12-month period, according to HSBC regression analysis.
Such a slight appreciation would not harm import or exports at all, Thanh added.
The appreciation is predicted to only affect competitiveness slightly on the US market but not to European or Japanese markets where currencies have already appreciated against the dollar.
Deposit interest rates
The wide gap between interest rate offered by domestic banks on US dollar deposits and those offered on dong deposits has also continued to widen.
The one year dong deposits earn an interest of 10%, while US dollar denominated deposits are paid only 5.5% for the period of one year.
"There’s a serious problem here in the interest inconsistency between dong and dollar," Thanh said.
Commercial banks are struggling to retain customers by keeping interest rates above the inflation rate, Techcombank chairman Nguyen Thieu Quang suggested.
Total capital mobilised by commercial banks and credit institutions in Hanoi has reached VND341.7bil (US$21.35mil) in the first 11 months of this year, up 36% over the same period last year, and the number has increased by 55% in HCM City, according to the Viet Nam Banking Association.
"The haste of local banks to raise deposit interest rates is really a double-edge sword which not only impacts badly on inflation but also on the banks themselves," said VNBA representative Cao Viet Loi.
Commenting on this issue, the director of the Central Banking Department of the State Bank, Truong Van Phuoc, told Viet Nam News yesterday that he could not say whether it was good or bad macro-monetary management.
"If inflation is water, nominal interest is the boat. As the tide rises, the boat surely follows," said Phuoc. "In any economy in which inflation is rising but nominal interest rates are falling, we should be concerned."
Source: Viet Nam News
"Considering a trip over there..."
Let me assume that you are interested in Vietnam in regards to business opportunities.
In that case a visit to the Vietnam consulate would open a flood gate of help by them.
(i.e.) Consulate General of Vietnam in San Francisco
http://www.vietnamconsulate-ca.org/home.asp
But if its an adventure you seek, and to travel widely, then you can book ahead into these
many bed and breakfast locations that will be populated by many other foreign travelers,
most all will speak English.
http://www.hoteltravelvietnam.com/Vietnam+Travel+News/Vietnam+Travel+News/foreignarrivalstovietnamhit2.5million/
In August, foreign visitors to Vietnam numbered 310,000, an 8-percent increase over last year's August.
The number of foreign visitors from Asia, Europe and the US surged between 11-50 percent with visitors from Thailand increasing by 50 percent; the Republic of Korea, 32 percent; Malaysia, 27 percent; Denmark, 26 percent; Japan and Russia, each up 23 percent.
Google "bed and breakfast vietnam"
http://www.bnbguidebook.com/guide/vietnam/
http://www.bnbchoices.com/vietnam/
http://www.bedandbreakfastcenter.com/search.cfm/226/Vietnam.htm
http://travel.yahoo.com/p-hotel-191501673-hanoi_hotels-i
http://www.bedandbreakfast.com/vietnam.html
http://www.hostels.com/en/availability.php/HostelNumber.13591
http://www.vietvaluetravel.com/faq
doug
FDI capital hits record in 2007
VNECONOMY updated: 21/12/2007
Viet Nam will surely get 19 billion USD in foreign direct investment this year, a record since the country first enacted the Foreign Investment Law in 1988, said a senior investment official.
According to Head of the Ministry of Planning and Investment’s Department for Foreign Investment Phan Huu Thang, the figure is higher than an earlier forecast of 16 billion USD as several large projects were granted investment licenses in December.
The official said the investment was poured in the country’s key economic sectors like industry, construction, electronics, telecom, infrastructure and high technology.
Investors also paid much interest in services, urbanisation, and construction of industrial zones and processing of seafood and agro-forestry products.
2007 is considered as a “bumper harvest” year for high-technology sector with many large-scale projects, including a 100 million USD printing circuit plant in Ho Chi Minh City of the US Jabil Circuit Co. Ltd., two plants with a combined capital of 80 million USD in Bac Ninh province of Taiwan’s Foxconn group. The Foxconn President even expressed his ambition to turn his firm into the largest investor in Viet Nam with an investment capital of 5 billion USD.
Biggest FDI projects include 1.7 billion USD Vung Ro oil refinery in Phu Yen province invested by the British Technostar Management and the Russian Telloil, Ha Noi-based 500 million USD luxury apartment building by Keangnam of the Republic of Korea, and a 45 million USD Vespa motor plant of the Italian Piaggio and a 500 million laptop plant of the Taiwanese Intelligent Universal in northern Vinh Phuc province.
In 2007, the Republic of Korea was the most successful investor in Viet Nam, topping the list of 81 foreign investors. Since 1988, it has had 1,655 projects in Viet Nam with a combined registered capital of 11.5 billion USD, equal to 22.7 percent of the total number of projects and over 16.4 percent of the capital.
The year also saw a large change in India’s investment strategy in Viet Nam. A steel plant in the southern province of Ba Ria-Vung Tau and a steel complex in the central province of Ha Tinh , brought the South Asian country to a list of top ten largest investors in Viet Nam. Viet Nam also became the biggest recipient of Indian investment in Southeast Asia.
Source: Vietnam Agency
I'm extremely interested in Vietnam. Considering a trip over there if I could find someone who lives there and could show me around...
This redneck isn't going to Vietnam without somebody looking after me. lol
what do you THINK, and I know it's ONLY 1 Opinion -on the Value going Up, or a Revaluation of the Dong against the Dollar , There are a lot of Businesses moving there,
I believe the Exchange rate is near-
1.00 USD = 15,990.00 VND
United States Dollars Vietnam Dong
1 USD = 15,990.00 VND 1 VND = 0.0000625391 USD
from the Forex website.
I have a friend in Singapore who is trying to get me any info he can. Hope to hear from him soon. Thanks for your time here.
I don't know a lot of facts about the Dong. However, I can tell you that for a few hundred USD you can get a grocery bag full of Dong. You can pretty much find someone ready to exchange USDs into Dong anywhere you go in the country.
Have you asked them any thing pertaining to the Dong, or do you have friends there who Might have some Input they could share.Thanks.And a Very Happy Holiday season to all.
Relief for Vietnam veteran's family after 36 yearsArticle from: Font size: Decrease Increase Email article: Email Print article: Print Submit comment: Submit comment Shannon McRae
December 20, 2007 12:00am
A FALLEN Digger finally got the welcome home he deserved when his coffin landed at a Melbourne air base yesterday, 36 years after he was killed in Vietnam.
John Gillespie was just 24 years old and had a young wife and toddler daughter at home when he died serving his country, killed when the RAAF helicopter he was in was shot down during a rescue mission in the Long Hai hills on April 17, 1971.
His remains were returned to his family for burial after they were flown in to the Point Cook RAAF base. His coffin was draped in the Australian flag, and troops formed a guard of honour.
Lance Cpl Gillespie's widow, Carmel Hendry, daughter Fiona Pike, two sisters and a brother were there, along with federal Veterans Affairs' Minister Alan Griffin, Vietnam
veterans, and Australian Defence Force officials and personnel.
Ms Hendry said while the return of her husband's remains closed a chapter in the family's history, it would herald a new beginning in which her daughter and her daughter's children would have a proper place to mourn and reflect on his life and ultimate sacrifice.
"It hasn't been easy for any of us," she said. "But with support from everyone, particularly the Government, we have made it. We have done this. We've got him home.
"We're relieved. We're exhausted. But we're just so happy he's on home soil and that we can say hello and have a beer with him."
Ray Zegers, who served alongside Lance Cpl Gillespie as a port door gunner and survived the enemy attack that killed his comrade, said he remembered the crash as though it were yesterday.
"I had a feeling something was wrong," he recalled.
"Unfortunately, something did occur. He had no chance whatsoever.
"It was the second blast that hit us. That was the end. I can remember the pilot saying 'Hang on, we're going down'."
He said it was a huge relief to finally see his mate home after 36 years.
The recovery of Lance Cpl Gillespie's body was done as part of a long-standing mission by Operation Aussies Home, headed by Vietnam veteran Jim Bourke.
Lance Cpl Gillespie's body was the third to be flown home from Vietnam as part of the operation, and a search is in progress for another three lost Diggers.
Mr Bourke said the search had been painstaking but ended with the best possible outcome.
"It feels really good to have this fella home," Mr Bourke said.
"The country has got a moral obligation to look after the families of these men, and we owe them the respect of at least endeavouring to find them.
"The relief that the families get makes it all worthwhile," he said.
LIVEed (worked) in Quang Tri Province 67-69
Doug
I don't live there but am from Vietnam. My mother lives there and I've been there quite a few times.
Vietnam soldier's body finally home
December 19, 2007 - 3:59PM
A digger returned home after 37 years, to a family who now has something to touch.
Lance Corporal John Francis Gillespie died in Vietnam in April 1971, seven months after he arrived there, when the helicopter he was in was shot down as it attempted to recover a wounded Vietnamese soldier.
From that time, until last week, the remains of the army medic had been buried under wreckage and three decades of dirt and undergrowth on the hillside where the chopper crashed.
But thanks to the persistence and loyalty of a group of ex-servicemen who had vowed to look after their mates, Lance Corporal Gillespie has made it back.
A C130 Hercules aircraft carrying his remains home from Vietnam landed at the RAAF's Point Cook air base near Melbourne on Wednesday.
For his widow and his brother and sisters, the overwhelming emotion has been relief.
But for his daughter, Fiona Pike, who was two years old when he died, it means she again has a father.
"I've never been able to touch my father, I can now," she said.
After a service at Point Cook, Lance Corporal Gillespie's widow Carmel Hendrie spoke of her gratitude to the ex-servicemen whose persistence and loyalty had led to the return of her husband's remains.
"To them I say 'thank you', and to the government who helped so much," Mrs Hendrie said.
"But this is for my daughter.
"Fiona and her sons now have somewhere to go and say 'hello'."
Lance Corporal Gillespie, an army medical assistant, died on a mission to rescue a wounded South Vietnamese soldier when the helicopter he was in came under fire, crashed and caught fire.
The 24-year-old was thrown from the aircraft when it hit the ground and was trapped underneath as it rolled on him.
The rest of the crew were rescued later the same day, but the heat from the wreckage prevented a thorough search for his body.
Lance Corporal Gillespie's remains were finally recovered, largely through the efforts of the ex-serviceman's group Operation Aussies Home.
Thanks to their efforts, Lance Corporal Gillespie's remains left Hanoi on Monday and landed at Point Cook on Wednesday, welcomed home by old soldiers and young ones, his family and the daughter who had never known him.
Full military honours - a band, a guard of honour and a medal - awaited him.
Military precision, however, briefly failed when the rear loading bay door of the Hercules plane that brought him home declined to open.
Brute force duly prevailed and the man whose mates came home in similar planes in 1972, was carried out of this one on the shoulders of six servicemen and women.
Lance Corporal Gillespie was one of 500 Australians killed during the country's decade-long involvement in Vietnam, and was one of six whose bodies couldn't be recovered at the time.
The remains of two of them, Lance Corporal Richard Parker and Private Peter Gilson, had previously been recovered through the efforts of Operation Aussies Home.
Private Gilson's son was a member of Wednesday's guard of honour.
A lack of detail of their likely whereabouts means the remaining three servicemen are unlikely to ever be recovered.
A private funeral for Lance Corporal Gillespie will be held on Saturday.
© 2007 AAP
Vietnam soldier's family meets casket
December 19, 2007 12:05pm
THE family of a fallen soldier killed in the Vietnam conflict arrived in Darwin with his coffin yesterday en route to his final resting place.
Lance Corporal John Gillespie, 36, an army medic, died on April 17, 1971, aged 24, when a RAAF Iriquois helicopter crashed and burst into flames during a medical evacuation in the Long Hai Hills of Phuoc Tuy province, in southern Vietnam.
All those who died in the incident were eventually recovered except Lance-Cpl Gillespie.
A Federal Government excavation of a helicopter crash site discovered the remains recently identified as those of the fallen soldier.
His widow, Carmel Hendrie, and daughter, Fiona Pike, flew in to Darwin with siblings of the lance corporal to watch soldiers of the First Combat Services Support Battalion carry his casket on to the tarmac from the RAAF C130 Hercules aircraft.
The family spent some quiet time for reflection with the soldier before reboarding the aircraft bound for Melbourne.
Lance-Cpl Gillespie will arrive home at RAAF Williams Point Cook with his family and will be buried with full military honours.
----------------------------------
WELCOME HOME BRO. WE'LL NEVER FORGET.
Rick c
Business
Foreign investment lightens Viet Nam’s economy
VNECONOMY updated: 19/12/2007
Viet Nam’s success in attracting foreign direct investment (FDI) at present is considered as one of the brightest points in the country’s economy, said the Secretary General of the United Nations Conference on Trade and Development (UNCTAD) on December 18 in Ha Noi.
At a seminar on Viet Nam’s investment policy, UNCTAD Secretary General Supachai Panichpakdi said that Viet Nam ranks sixth in FDI attraction among the surveyed economies.
According to the UNCTAD, the Vietnamese Government should encourage FDI businesses to invest in telecommunications, electricity, transport and education.
However, a suitable and uniformed market liberalisation strategy is required to attract foreign investors in the above mentioned fields. Viet Nam should begin designing and implementing a master plan to attract a larger FDI influx. Such a plan should not only focus on production activities for exports but also FDI in new and active fields, including services, said a UNCTAD official.
According to a report by the Foreign Investment Department, since the Foreign Investment Law became effective almost 20 years ago, Viet Nam has attracted more than 7,300 projects totalling around 70 billion USD with Singapore, the Republic of Korea, Taiwan, Japan and Hong Kong are leading investors. The nation is expected to attract more than 16 billion USD in FDI this year.
Source: Vietnam Agency
After China, Vietnam Will Be World's Factory: Andy Mukherjee
By Andy Mukherjee
Dec. 6 (Bloomberg) -- The 4 million motorcycles on the streets of Ho Chi Minh City offer a remarkable -- if somewhat noisy -- testimony to the prosperity that beckons Vietnam.
A $900 Honda may not be everyone's idea of affluence. However, it has the same pride of place in this rapidly industrializing nation as a bullock cart in an agrarian society.
Young men and women -- many of them migrants from rural areas -- commute to large, modern factories on the outskirts of the city on bikes they are proud to own and scared to lose.
This mobility is so crucial to the workers' productivity that some employers in the city formerly known as Saigon have even begun buying insurance, at their own expense, against the risk of bikes being stolen from their factory premises.
Investors who take the boom in Vietnam's two-wheeler market as a harbinger of a burgeoning mass market may be disappointed for a few years. Those who see the lust for bike ownership as a sign of Vietnam's young labor force yearning for the tools it needs to plug into a global supply chain will win.
After China, Vietnam is emerging as the world's next factory of choice for labor-intensive goods.
One can see that in the changing composition of the country's exports. Rice and coffee -- two of Vietnam's biggest agricultural exports -- are now becoming less significant to the $61 billion economy than textiles. Footwear shipments are gaining prominence over seafood.
Furniture Capital
The other fast-growing export industry is furniture.
Exports of wood-based products have grown 24 percent from last year to more than $2 billion.
James Koh, a Singapore businessman, makes dining tables and chairs in Vietnam for customers around the world, including Williams-Sonoma Inc.'s Pottery Barn stores in the U.S.
Koda Ltd., of which Koh is the managing director, also has factories in Malaysia and China. Yet, it's Vietnam's lower costs that are prompting the company to expand capacity here by 25 percent.
The labor cost in Vietnam is half that of China, while worker productivity is about the same,'' says Koh.
Starting next year, the government will increase the mandated minimum wage for foreign-funded companies in Ho Chi Minh City and Hanoi, the national capital, by 13 percent to 1 million Vietnamese dong ($62), a level that is still affordable, Koh says.
Ready to Compete
Chinese-made goods have become increasingly expensive in the U.S. for the past six months. That gives Vietnamese manufacturers an opportunity to win a bigger share in their largest export market.
The ingredients are in place.
Vietnam's accession to the World Trade Organization in January has provided its textile industry with quota-free access to the U.S. Joining the WTO regime has also caused a 37 percent surge this year in overseas investment commitments to $13 billion.
The biggest draw of the country is clearly its labor.
The median age in Vietnam is 25 years. The workforce isn't just young, but also literate and healthy: The proportion of people who are undernourished has been cut in half over the past three decades.
The risk for Vietnam is inflation, which accelerated to 10 percent last month, the fastest pace in three years.
Inflation Risk
In the short run, Vietnam must stand ready to sacrifice some economic growth to halt the increase in prices, especially of construction material.
If left unchecked, inflation will become a drag on Vietnam's competitiveness even if the central bank doesn't allow the dong's nominal exchange rate to appreciate.
On the whole, though, Vietnam is on the road to prosperity.
The swanky Louis Vuitton and Gucci showrooms that have sprung up in Ho Chi Minh City may be a bit premature in a country where the annual per-capita income was $723 last year.
The time for the Vietnamese consumer will undoubtedly come.
With a population of 85 million, and an economy that the International Monetary Fund forecasts to grow more than 8 percent this year and next, the Southeast Asian country will soon represent a sizable domestic market.
For now, the Vietnamese producer is the bigger opportunity.
There is, however, no room for complacency.
Cheap labor makes it relatively easy for a country to enter the global supply chain, but it has to work hard to stay in.
Increasingly Complex
Especially now, when a seemingly simple task like attaching four legs to a rectangular piece of American poplar wood and shipping it back to the U.S. has become too complex to undertake without overseas capital and expertise.
First, there is a minimum investment in technology without which large orders from retailers are impossible to win. Each of the Taiwanese-built assembly lines that Koda is installing in its new Vietnam factory costs $300,000.
Second, buyers in Europe are demanding more exacting environmental standards from their vendors, such as minimum use of packaging material, Koh says. Americans, meanwhile, are getting fussy about making all shipments terror-proof.
Most importantly, no retail store -- European or American -- wants a sweatshop scandal at any of its suppliers' units.
Like most developing countries, Vietnam is dogged by corruption and red tape. It must strive to improve its record now that it's getting the investments it needs for the workers to graduate from motorcycles today to cars in the future.
(Andy Mukherjee is a Bloomberg News columnist. The opinions expressed are his own.)
To contact the writer of this column: Andy Mukherjee in Singapore at amukherjee@bloomberg.net .
Last Updated: December 5, 2007 17:06 EST
http://www.bloomberg.com/apps/news?pid=20601039&sid=aDjL0As_b1h4&refer=home#
I believe THERE are SOME KEY PARTS if one Reads it carefully.-JMO.-------
IMF gives Vietnam a 5-step plan
16:00' 10/12/2007 (GMT+7)
PM Nguyen Tan Dung at CG Meeting 2007
VietNamNet Bridge – At this year’s Consultative Group meeting, the International Monetary Fund (IMF) recommended five ways Vietnam could continue improving its economy; it emphasized sustainable development based on control of the monetary market.
The first thing the IMF recommended is tightening monetary policies. In the January – September period, the volume of cash in circulation was high and the IMF told Vietnam to strictly manage joint stock and commercial banks’ operations.
The IMF encouraged the Government to enforce credit growth and tighten conditions on money and banking supervision, especially on joint stock banks.
The IMF also asked the State Bank of Vietnam to strengthen its monetary administration flexibility and clearly define its market administration goals and methods.
The fund also recommended increasing exchange rate flexibility. Accordingly, as the capital flow into Vietnam increases, it is necessary to timely intervene in the exchange rate and to not pressure monetary administration.
Another issue that the IMF mentioned is a cautious fiscal policy. Vietnam is in high demand from both domestic and international investors, but pursuing an expansive fiscal policy can make inflation more serious or hamper sustainable growth.
The IMF also encouraged the Vietnamese Government to more carefully supervise outside capital sources; and especially not fund State-owned enterprises’ projects through issuing government bonds.
The fourth point is speeding up banking reforms. IMF said it highly appreciates the comprehensive banking reform itinerary of Vietnam, particularly the equitisation of State-owned commercial banks. It stressed the importance of turning the State Bank of Vietnam into a modern central bank, able to manage monetary policies and supervise other banks and financial institutions during this period of strong growth.
The fund also suggested the expansion of the private sector’s role, considering this the catalyst for economic growth and job creation. IMF said that all State-owned enterprises should be completely equitised by 2010.
(Source: TBKTVN
Business
IMF gives Vietnam a 5-step plan
VNECONOMY updated: 11/12/2007
At this year’s Consultative Group meeting, the International Monetary Fund (IMF) recommended five ways Vietnam could continue improving its economy; it emphasized sustainable development based on control of the monetary market.
The first thing the IMF recommended is tightening monetary policies. In the January – September period, the volume of cash in circulation was high and the IMF told Vietnam to strictly manage joint stock and commercial banks’ operations.
The IMF encouraged the Government to enforce credit growth and tighten conditions on money and banking supervision, especially on joint stock banks.
The IMF also asked the State Bank of Vietnam to strengthen its monetary administration flexibility and clearly define its market administration goals and methods.
The fund also recommended increasing exchange rate flexibility. Accordingly, as the capital flow into Vietnam increases, it is necessary to timely intervene in the exchange rate and to not pressure monetary administration.
Another issue that the IMF mentioned is a cautious fiscal policy. Vietnam is in high demand from both domestic and international investors, but pursuing an expansive fiscal policy can make inflation more serious or hamper sustainable growth.
The IMF also encouraged the Vietnamese Government to more carefully supervise outside capital sources; and especially not fund State-owned enterprises’ projects through issuing government bonds.
The fourth point is speeding up banking reforms. IMF said it highly appreciates the comprehensive banking reform itinerary of Vietnam, particularly the equitisation of State-owned commercial banks. It stressed the importance of turning the State Bank of Vietnam into a modern central bank, able to manage monetary policies and supervise other banks and financial institutions during this period of strong growth.
The fund also suggested the expansion of the private sector’s role, considering this the catalyst for economic growth and job creation. IMF said that all State-owned enterprises should be completely equitised by 2010.
Source: Thời báo Kinh tế Việt Nam
Oh I think a lot of Companys-Country's and BIG Business is very interested already. I just wish I knew enough on how and WHAT to play in this Game to come out a Winner.lol
Vietnam is a present day phenomena, in that it is becoming democratic while really not saying so. On this note alone, Vietnam is sending positive signals to those interested. In time imo, Vietnam will one day surprise most of the world.
I sure wish I knew someone that was going to these, I would ask them to ask about the Chance of VN doing a DONG Revaluation. and When. They sure aren't getting any more from me untill they show better results.jmo.
Business
HSBC hosts Viet Nam investment forums
VNECONOMY updated: 06/12/2007
Hongkong Shanghai Banking Corporation (HSBC) held Viet Nam Investment Forums in London, New York and Boston on December 4 to introduce Viet Nam’s capital market.
The event, lasting until December 7, was organised in response to increased interest in the local equity market from investors in both the UK and the US .
President and CEO of HSBC in Viet Nam , Thomas Tobin said in a press release, “Positive feedback after the Viet Nam Corporate Access Investment Conference in Singapore in November encouraged us to communicate more with investors in the UK and US markets.”
Foreign investors participating in the forum gain an in-depth look at the Viet Nam capital market, as well as its revenue generating possibilities.
Thomas also pledged to assist Vietnamese enterprises in sourcing international capital that could help them improve their businesses.
The forum also looks at the future of Viet Nam ’s capital markets, practicalities of equity investment in Viet Nam , government policies and the securities market.
Senior executives from HSBC in the UK and US are sharing their experiences in supporting enterprises to raise funds in international capital markets. Through these discussions, it is hoped that Vietnamese companies can maximise their opportunities for obtaining investment.
Joining the conference were officials and representatives from the Ho Chi Minh City Stock Exchange, local banks and financial institutions, as well as listed and non-listed enterprises.
About 50 leading international investment houses from the UK and US were attending the forum.
We just have to show them how to SHOOT A 3 POINT BASKET.LOL
At least we have seen some movement.
The Viet Dong took a nice bounce up....
Median price = 0.00006123 / 0.00006332 (bid/ask)
Minimum price = 0.00006123 / 0.00006332
Maximum price = 0.00006123 / 0.00006332
Talking Shop
(22-11-2007)
WTO ushers Viet Nam into world economy
A year ago this month, the World Trade Organisation voted to admit Viet Nam as a member. Luong Van Tu, former Deputy Minister of Trade and head of Viet Nam’s WTO accession negotiation team, spoke to Viet Nam News reporter Phuong Hoa about Government efforts to integrate into the global economy while ensuring sustainable growth.
What is the Government doing to enable Viet Nam to participate more in the global economy?
To comply with Viet Nam’s WTO commitments, the Government has drafted or amended some 30 laws and ordinances and ministries are in the process of issuing decrees to guide implementation of the laws.
It’s also better for our economy because when foreign enterprises come to a country, they usually consider the consistency and predictability of the legal environment a leading factor in making their investment decision.
By comparison, over the past five years, China has amended roughly 2,500 different regulations to shift into a market economy.
Does economic integration mean that our economy will be more vulnerable to volatility in the global economy?
An objective factor is that prices of fuel and raw materials have skyrocketed around the world, impacting not only Viet Nam but a host of other countries. For example, prices of oil, steel and many raw materials have increased non-stop since 2001.
As we move from direct to indirect governance of the economy, we will no longer fix prices but allow them to be widely regulated by the market. It requires a new administrative approach by government to avoid adverse impacts on the economy, but after a time, when we have had more practical experience, we can do it better.
Is the galloping consumer price index this year symbolic of our vulnerability to external economic forces despite the Government’s bold measures?
The Government has cut import taxes on many products and goods, but enterprises have yet to reduce prices, so there is a problem here. The Government has put a close watch on this and assigned the Ministry of Finance to monitor and supervise the movements of companies.
Businesses have pointed out that goods which would enjoy the lower tax rates have yet to dock at Viet Nam ports.
A major challenge facing the Government is how to control price gouging while guaranteeing profits for producers. The Government is moving from direct to indirect management of the economy. Before, it could issue orders and fix prices by decree, but now, WTO accession requires us to shift towards a market economy with a socialist orientaion and we have to govern using indirect methods, meaning that the Government must issue laws or regulations and enforce them equitably.
We are implementing these changes gradually, and I think the Government has already recognised the trend and is undergoing the changes it needs time to make. Life requires us to proceed. If we don’t want to change, it means that we stand still amid the non-stop development of the world. Of course, we have to choose the changes that are best for us and help us stablise and develop our economy. It’s not like we have to develop at any cost.
Infrastructure in Viet Nam still remains poor as being seen in the eyes of overseas investors. What do you think?
One of the bottlenecks of Viet Nam is aviation. Most tourists and investors arrive in Viet Nam by air. The Government has been hastening the refurbishing of aviation services to create favourable conditions for travellers and business people to bolster tourism, trade and investment.
A number of airlines have been expanding their fleets, notably Vietnam Airlines.
For instance, domestic airlines have recently reached agreement with Boeing to buy eight B787-8 aircrafts worth about US$1.4 billion, which, along with an earlier $600 million contract, means Viet Nam has earmarked around $2 billion for purchasing aircraft from Boeing. We also are buying aircrafts from Airbus.
Also, around 17 million Vietnamese use the internet, and Viet Nam has seen rapid growth in internet use. Viet Nam now has more than 30,000 websites.
We are facing real worries, however, due to our port and road systems, and the Government is boosting its investment here. Besides capital problems, we also need a certain amount of time to rebuild this kind of infrastructure. We can’t do it overnight. — VNS
Happy Turkey day to you also!
I AGREE on having some , Hey it's RAINING here . TODAY. LOL Good Luck to us all on BOTH our Currency plays. & HAPPY THANKSGIVING TO ALL.
Yeah we are all familier with Printing Presses!
I have not heard that, but it sounds great to me. Here's to hoping we are able to add ALOT more before that date happens.
Not what many were hoping for. But I still want to have some for a rainy day fund here.
Doesn't sound good for Investors in the Dong, if they were hoping for a REVALUATION ant time soon. jmo.
VND interest rate will not see big fluctuations: SBV
VNECONOMY updated: 22/11/2007
The Monetary Policy Department under the State Bank of Vietnam has affirmed that there will be no big changes in VND interest rates from now to the end of the year.
The information about the lack of VND and the sharp increases of the overnight interest rate in the inter-bank market has made people think that a new interest rate increase wave is coming.
However, Nguyen Ngoc Bao, Director of the Monetary Policy Department under the State Bank of Vietnam, asserted that the interest rates would be stable towards the year’s end. Mr Bao has cited four reasons that he believes will prevent a new interest rate increase, despite the hot inter-bank market.
First, the supply and demand of capital is basically in balance.
Second, most commercial banks have fulfilled their plans on capital mobilisation for 2007 already and they do not need to raise more money.
Third, the US$ interest rate on the international market is on the decrease.
Fourth, the central bank will not allow big fluctuations in interest rates. The bank will apply necessary monetary operations in order to stabilise the market.
Meanwhile, commercial banks all predict that deposit interest rates will increase towards the end of the year, when the demand for capital disbursement increases.
In the inter-bank market, the overnight interest rate soared to 15% late last week. Meanwhile, no bank wants to lend money at this moment, fearing that they themselves will suffer from the VND capital shortage.
“When the market is short, all banks try to keep VND to ensure their payment capability, and no one intends to lend money now,” the director of a state-owned bank said.
An official from the Bank of Investment and Development said that in the last time, several banks used the capital they borrowed in the inter-bank market (short-term loans) to lend for the long term, and these banks have been suffering since the inter-bank interest rate has soared so dramatically.
However, the official said that he did not think the hot inter-bank market would badly affect the credit market, and said he believed that the troubles of the inter-bank market would be settled this week.
On November 15, the State Bank of Vietnam spent VND500bil to buy short-term valuable papers. The bank spent VND2,000bil on November 16, VND2,000 on November 19 (Monday) and VND3tril on November 20 (Tuesday) to cool the inter-bank market down.
Mr Bao stressed that the injection of money would not influence the implementation of the task on curbing inflation. The money has been pumped in in order to improve the liquidity for banks for the short term of 5-7 days. After that, the money will be taken back.
The shortage of VND in the inter-bank market has been eased after the central bank’s intervention. However, the moves by the central bank have not reassured banks.
Vu Duc Nhuan, Director General of Maritime Bank, predicts that the interest rates may slightly move up because of two reasons: 1. the demand for VND is always high at the year’s end and 2. the measures used by the central bank to control the price increases will show their impacts on interest rates.
Source: Tiền Phong
US firms eye Vietnam investment options
17:32' 09/11/2007 (GMT+7)
VietNamNet Bridge – Most business executives accompanying US Secretary of Commerce Carlos M Gutierrez on his ongoing official visit to Vietnam have shown keen interest in expanding their company's operations here.
More than half of the 23 US companies represented in the delegation which arrived for a five-day visit last Sunday are in the Fortune 500 and seek to increase imports from Vietnam and appoint agents and establish channels of distribution in the country.
Brady Southwick, general director of Cummins Diesel Sales Corporation in charge of operation and distribution in the northern and Southeast Asian regions, said his company had signed a memorandum of understanding with Viet Nam Motor Industry Corporation (Vinamotor).
A joint venture would be set up to manufacture diesel engines for trucks and buses both for the domestic market and exports, he added.
Bruce Quinne, deputy director of strategic development at Rockwell Automation group, which specialises in automation of information management, said his company was seeking local partners to boost sales.
Terex Corporation, a diversified global manufacturer of a broad range of heavy equipment, has plans to build an assembly and production facility in Vietnam.
The American tourist
Noel Irwin Hentschel, president of American Tours International group, said Vietnam had great potential to attract US tourists even as she admired the many charms of Hanoi.
She said she had met with more than 10 tourist companies in HCM City to discuss tie-ups.
Both US authorities and tour operators maintain that visas are of little concern, she said.
She quoted the US ambassador to Vietnam as saying more visas would be issued to Vietnamese tourists.
We want to attract more Vietnamese to the US and Canada, at the same time co-ordinating with local tourist companies to bring North Americans to Vietnam, she noted.
Places like Hanoi, Da Nang, HCM City, and the Cuu Long (Mekong) Delta had become popular with US tourists, she added.
Expansion
Kevin Fitzpatrick of the AIG Real Estate Co., an affiliate of the US-based AIG financial group, told HCM City leaders at a recent meeting that the company was looking for a downtown area to build a complex comprising a hotel, commercial centre, and office and apartment blocks.
AIG had appraised some "much-coveted" spots in the city for the mammoth project that was expected to cost hundreds of millions of dollars, he said.
Winvest Investment group, which was licensed last year, sought permission to increase its investment to US$4bil from the current $300mil to build a multi-functional 300ha tourism and recreation complex in Vung Tau town.
"Winvest decided to increase the investment given Vietnam's potential for tourism growth and to compete with large resorts [elsewhere] in the region," Tran Van Son, deputy general director of Winvest Investment's Vietnam operations, said.
The company had begun site clearance work and advanced Ba Ria-Vung Tau Province VND51bil for it, he said.
American investment in Vietnam now totals $5.2bil, the sixth-highest of all countries and territories. This does not include investment by US firms based in Hong Kong and other places.
Analysts predict the number to jump in the next couple of years when major commitments to open up the market will have to be implemented.
(Source: Viet Nam News)
FREE PREVIEW-Wall Street Journal.
U.S. Seeks Easier Access To Vietnam Investments
By James Hookway
Word Count: 511 | Companies Featured in This Article: Ford Motor, Dow Chemical, 3M, ABN Amro Holding
HANOI, Vietnam -- American companies would like to see Vietnam's Communist government make it easier for them to invest here, U.S. Commerce Secretary Carlos Gutierrez said.
Accompanied by representatives from 22 U.S. companies, including Ford Motor Co., Dow Chemical Co. and 3M Co., Mr. Gutierrez met with Vietnam's top political leaders to discuss the opening of one of Asia's fastest-growing economies.
Improving opportunities for American investment is a better way of dealing with the U.S.'s trade deficit with Vietnam than trying to curb U.S. imports of Vietnamese goods, he told reporters following meetings with Vietnamese officials, including President Nguyen Minh ...
Business
Viet Nam-US trade sets to exceed 12 bln USD
VNECONOMY updated: 06/11/2007
US Secretary of Commerce Carlos M. Gutierrez has confirmed US-Viet Nam bilateral trade that mounted to 9.7 billion USD in 2006 is set to rise in the coming time.
“We believe that 9.7 billion USD should be a lot a lot larger, maybe 12 billion USD next year or even more,” Gutierrez, who is leading a 22-strong member business delegation to Viet Nam from November 4-8, told a press rountable in Ha Noi on November 5.
Secretary Gutierrez informed the media of the positive feedback he received from the US business community in Viet Nam, who said that their businesses are all running well.
“I heard a very positive sign that the investors’main concern is they would like to invest more rapidly, they would like to have things move quicker,” Gutierrez said.
“A lot of countries around the world would like to have that ‘problem’,” he added.
The US is now the one of the largest market for Vietnamese exports, importing 8.6 billion USD in goods from the Southeast Asian country while exporting only 1.1 billion USD.
However, the US Secretary of Commerce confirmed there will be no restrictions to Vietnamese goods exported to the US. The world largest economy, however, wishes to promote exports to the Vietnamese market as part of its efforts to minimise its overall trade deficit.
He said that the faster the two-way trade between US and Viet Nam grow, the more jobs and growth will be created for both countries, and the more contribution the two countries can give to the world and the people of both nations.
Joining the first-ever US Business Mission to Viet Nam to explore business opportunities include more than 20 American companies in various industries, from manufacturing, science and technology development, automobile makers, tourism, hospitability and aviation.
Source: Vietnam Agency
KEN KUHN sent this , and it is a Good Reminder and something to give us all Hope-
----------------------------------------------------------
Below is a COMMENT by KEN----------
Take note of the dilemma Vietnam is facing as you read through this article. While depreciating it's currency may increase exports and grow it's economy it also leads to inflation. The way to counter inflation is to raise the value of the currency. In addition, depreciating the currency is having less and less effect on increasing exports.-KEN.
-------------------------------------------------------
Stronger dong unlikely to hurt exports, economist says
Rice gathered at the Saigon Port for shipments. Vietnam plans to export 4.4 million tons of rice this year
The appreciating Vietnamese dong should not affect the country's exports significantly, according to an economist who based the conclusion on the currency's performance last year.
But an attempt to curb the appreciation by purchasing more US dollars could fuel already high inflation, according to a recent Thoi Bao Kinh Te Saigon (Saigon Economic Times) article by Huynh The Du, a professor from Vietnam’s Fulbright Economics Teaching Program.
Du said the abundance of foreign currencies in Vietnam – made up mostly of inflows from foreign stock market investors and a sharp increase in foreign direct investment – was posing a dilemma for the government.
The central bank's purchase of more foreign currencies earlier this year would fuel inflation, he said.
But if the foreign currency were not bought, Du concluded the dong would likely become valuable enough to hurt the country's exports.
Trading partners abroad often count on low dong rates to make profits when buying and selling Vietnamese goods.
However, Du also said the fluctuation of dong has not affected the economy too severely in the past.
The weaker dong has done little to boost exports or curb trade gaps, he said.
Trying to support exports by periodically depreciating the currency could weaken domestic business competitiveness, he added.
Du suggested that moves to regulate the dong might not be as useful as more internal measures.
“For now, curbing the consumer price hike is more important,” he said.
Five-year statistics
In his article, Du compared Vietnam's trade over the last five years with eight major Asian economic partners — China, Singapore, Taiwan, Japan, the Republic of Korea, Thailand and Malaysia.
These economies' currencies gained 2-4 percent against the dollar over the first nine months of the year, while the dong lost 0.2 percent.
Yet Vietnam’s imports from these economies more than doubled over the period.
According to Du, the dong depreciated an average of four percent against these currencies through the 2001-2006 period.
At the same time, Vietnam’s trade gap against these economies rose from an average of 103 percent to 131 percent.
The dong gained against these currencies in 2005 but export growth (21.7 percent) was still higher than import growth (18.5 percent).
“Such statistics reveal that policies geared towards depreciating the dong did not affect Vietnam's exports significantly,” Du wrote.
“Vietnam’s exports and imports seemed to be influenced by inner economical problems rather than by foreign exchange rates.”
At this point, Du suggested, the central bank should buy only the dollar and should apply measures to neutralize the negative effects the purchases may have on inflation.
In the future, he said the bank should consider making its foreign exchange rate management more flexible and, if possible, base it on a basket of currencies instead of just the dollar.
Source: TBKTSG
Story from Thanh Nien News
Published: 04 November, 2007, 11:42:18 (GMT+7)
Copyright Thanh Nien News
http://www.thanhniennews.com/print.php?catid=11&newsid=33093
Thanks and Regards,
Ken Kuhn
(630)-631-6407
902 S. Randall Rd. Suite C337
St. Charles, Illinois 60174
United States
www. dealorbuydinar.com
Mathaba News Network
Viet Nam plans WTO trade fair
Posted: 2007/11/06
From: Mathaba
Ha Noi (VNA) – Viet Nam plans to hold a Viet Nam-WTO trade fair from January 12-17 with participation from well-known domestic and foreign enterprises.
Coinciding with the first anniversary since Viet Nam joined the World Trade Organisation, the six-day event will be held at the Viet Nam Exhibition and Fair centre. It is expected to attract around 700 stalls divided into four main areas.
Participants need to register with fhe fair’s organisation board before December 30, 2007.
Local companies will compete for awards such as the Golden Globe and Viet Nam Star in production, business, trade and service and the Viet Nam Quintessence for special, high-qualified products. All awards represent high achievement and entrepreneurship in trade.
The fair hopes to promote Viet Nam’s potential to foreign investors as well as pave the way for future cooperation between local firms and those abroad, said Deputy Prime Minister Nguyen Sinh Hung.
US commerce secretary urges Vietnam to foster investment -
Mon, 05 Nov 2007 09:59:03 GMT
Hanoi - US Commerce Secretary Carlos Gutierrez praised Vietnam's fast-growing economy on Monday but urged the government to streamline investment to accommodate companies eager to enter the marketGutierrez, who is leading a three-day trade mission along with representatives from 22 US companies, said the main concern of investors is regulatory delays.
"The big issue that companies have brought forward is that they would like things to move faster. They want to invest and sometimes things don't move as quickly as they'd like," Gutierrez said.
"Vietnam is competing with countries around the world for capital and anything that the government of Vietnam can do to make it easier to bring capital here, that would be for the advantage of Vietnam," he said.
The communist country, where American soldiers fought a bloody war more than 30 years ago, is now allies with the US, which is one of its top export markets.
Vietnam has already recorded a record year of foreign investment, with 11.2 billion dollars pledged through October, up 35 per cent for that time last year, according to the Ministry of Planning and Investment.
Gutierrez met Monday morning with Prime Minister Nguyen Tan Dung and President Nguyen Minh Triet in Hanoi and was scheduled to speak with members of the American Chamber of Commerce later in the day.
More than 30 years after the Vietnam War in which more than 58,000 US soldiers and 3 million Vietnamese died, the two countries are allies and the US is one of Vietnam's largest trading partners and export markets.
Last year, Vietnam exported some 8.6 billion dollars to the US, up sharply from the 1.1 billion dollars of 2001, when the two countries signed a historic bilateral trade agreement.
Gutierrez, who led a delegation of US companies including Ford Motor Co, Northwest Airlines, 3M Co, Dow Chemical and Marriott International, will likely be looking to seek new opportunities for American goods, which have been slower to increase sales in Vietnam.
Last year, the US exported only 1.1 billion dollars in goods and services to Vietnam, double the amount of five years ago but still leaving the country with a 7.5-billion-dollar trade deficit with Vietnam.
http://www.earthtimes.org/articles/show/136493.html
vnd is dead ,no posts , no real movement in the vnd
ANZ Bank forecasts USD/VND exchange rate by the end of this year at 16,240. As a rule, in the closing months of every year, the US dollar becomes stronger as importers seek foreign exchange to pay for imports. However, some people predict that the pressure to weaken the US dollar would continue, as major IPOs were likely to guarantee sizable foreign capital inflows.
HANOI (AFP) — The World Bank Thursday improved funding access for Vietnam, placing it within the ranks of middle income countries due to good development progress and increasing credit worthiness.
World Bank country director Ajay Chhibber said Vietnam could access the International Bank for Reconstruction and Development (IBRD) for financing poverty reduction which will supplement existing schemes.
"More support from the WB (World Bank) will help Vietnam achieve its growth in the future ... in an inclusive and sustainable manner," Chhibber said.
The country, which became a member of the World Trade Organisation in January, has seen sustained annual economic growth rates of more than eight percent.
Vietnamese Prime Minister Nguyen Tan Dung said in October he expected the country's GDP per capita would reach 960 dollars next year, higher than the predicted 835 dollars for 2007.
This was expected to result in Vietnam being removed from the list of developing countries with low incomes.
Prime minister admits failure in containing inflation
09:58' 27/10/2007 (GMT+7)
VietNamNet Bridge – Prime Minister Nguyen Tan Dung on October 26 admitted that the government has not been able to contain the price hike due to its failure to foresee market fluctuations.
Talking with the press on the sidelines of the ongoing second session of the 12th National Assembly in Hanoi, he cited exporters’ suffering from the increase in the value of the Vietnamese dong, saying that it was due to the government’s inappropriate macro management of the VND-USD exchange rate.
“The government made a serious self-criticism on the issue before the National Assembly,” PM Dung said, adding that the hike in prices of inputs and raw materials and the exchange rate of foreign currencies in the world market was also one of the factors to drive inflation up.
The PM also acknowledged the failure in implementing the policy on developing the auto industry through protectionism, saying “this is a lesson”. He stated that the government is concentrating on solving the issue.
In reply to concerns about the national economy’s capability to absorb investment capital, the PM said the investors always calculated decisions regarding their money and the role of the government is to create favourable conditions for them.
On a recent international survey that placed Vietnam sixth in the world’s top ten countries in terms of investment attraction, PM Dung said the government is not content with the assessment and is resolved to develop a dynamic and transparent business environment to attract more investment and help the national economy grow in a fast and sustainable manner.
(Source: VNA)
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Now I have heard rumor/speculation, that Vnd could reval 1 to 3 cents. Has anyone else heard anything pertaining to this.
I hear you! Kind of like the Pinks ,Huh! Lol!!!
I hope it gets back to that level. But they have printed off ALOT of new currency since those days. This govt is known for diltuion!
I read on another board, that in 1969 the Vietnam currency exchange rate was aprox. 118vnd to $1 U.S. dollar. Something to think about, one of these days!!!
State Bank keeps hands off appreciating dong
by Ha Phuong and Thien Ly
A number of leading banks last week quoted a single rate for buying and selling US dollars, and the figure was set at the floor of the officially-permitted trading band.
On Friday, the State Bank of Viet Nam set the daily inter-bank rate at VND16,160 per dollar. Given a trading band of +/-0.5 per cent. This means that commercial banks are allowed to exchange currency within a range of VND16,079-16,241.
Vietcombank, on Friday, pushed its selling rate down to the floor rate of VND16,079, a figure equal to that at which they were buying US dollar, a move that guaranteed no profit on foreign exchange transactions.
The situation repeats a pattern from earlier this year when the dong appreciated at a time of strong inflows of foreign currency into the then-overheated stock market. The State Bank intervened at that time by buying up US$7 billion in the first half of 2007, and the dollar rebounded on the local market.
This time, however, the central bank shows no signs of wanting to buy up the greenback to stop its declining trend on the local market.
A State Bank official who asked to remain anonymous said that the State Bank would not consider any "serious" or "official" intervention.
He explained that only banks strong in import-export and securities payments were suffering from an abundance of dollars. The State Bank was taking the position that banks should try to balance their accounts by trading US dollars among themselves as many banks still were not holding large foreign currency reserves.
The intervention of the central bank was not yet necessary, he said, attributing depreciation of the US dollar against the dong to the Fed rate cut and the overall decline of the dollar against other world currencies.
The State Bank would only intervene, he said, when dong liquidity decreased or banks lacked sufficient domestic currency to buy up dollar. No banks have yet reported these situations, the official said.
ANZ Bank forecasts USD/VND exchange rate by the end of this year at 16,240. As a rule, in the closing months of every year, the US dollar becomes stronger as importers seek foreign exchange to pay for imports. However, some people predict that the pressure to weaken the US dollar would continue, as major IPOs were likely to guarantee sizable foreign capital inflows.
Dealing in real estate?
It’s been nine months since the Law on Real Estate Transactions took effect but still the guidelines to implement the law have not been issued. With the domestic real estate market experiencing a surge of new sales following a long-term slump, the delay is eating into the profits of developers, they say.
According to the HCM City Department of Planning and Investment (DPI), 239 companies last year registered each month to deal in property. In the first few months of this year, that figure climbed to 263.
But because of the delay in the property law’s guidelines, these companies have not been able to receive licences.
Mai Hieu Thao, general director of the HCM City Electricity Investment and Trading Joint Stock Co, said the company registered with the city investment department to begin trading but was barred from going ahead since the guidelines had not been issued. However, it has been allowed to provide consulting services, he added.
Another joint stock company with three members said it faced the same problem.
DPI director Thai Van Re conceded that the agency has had to refuse many applications for real estate trading and property-related services.
The current law does not include detailed provisions on how these companies should operate, he said, adding that the city was waiting for the guidelines also. In Ha Noi, the situation is the same.
Le Hoang Chau, vice chairman of the HCM City Real Estate Association, said the delay has resulted in losses for companies and has adversely affected the real estate market.
Vo Dinh Quoc, deputy general director of the ACB Property Company, agreed, adding that buyers looking for new homes are also being hurt because of the central government’s lag on the guidelines.
Banks will be banks
Local banks are stepping up their efforts to seek foreign strategic partners to improve their business efficiency and competitive ability. Having a foreign bank as a partner can help improve technology, development strategies, management skills and personnel training.
Most foreign banks are experienced retail banks, an area in which local banks are considered to be weak.
Foreign banks are eyeing local banks as well, partly because of the potentially lucrative customer network of clients of the Vietnamese partner.
Asia Commercial Joint Stock Bank (ACB) and Britain-based Standard Chartered Bank (SCB), for example, became partners in 2005, with the latter holding a 8.56 per cent of ACB. Recently, SCB acting as an ACB agent, has successfully issued ACB bonds worth VND2,250 billion ($140 million).
ACB and SCB are mapping out a strategy to make ACB a leading retail bank in Viet Nam. In addition, SCB has assisted ACB in technology renovation and bank administration. SCB will also help ACB issue the remaining VND4,250 billion ($265 million) bonds between now and the first quarter of 2008.
In another partnership, Singapore-based United Overseas Bank Limited (UOB) has become a strategic partner of the Phuong Nam Commercial Joint Stock Bank (Southern Bank) after buying 10 per cent of the latter’s total shares.
The UOB has helped train Southern Bank’s staff in modern products and services.
Bank deputy general director, Dam Ngoc Anh, said the partnership helped the bank improve its administration and diversify financial services.
The Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) and its strategic partner, the Australia and New Zealand Bank (ANZ), will work together on a bank and credit cards joint-venture company late this year. The JV company would act as an agent responsible for issuing cards for the two banks.
Dang Van Thanh, chairman of Sacombank Executive Council, said Sacombank and ANZ would fully tap each other’s transaction networks and technology to provide the best in customer services.
Sacombank has also launched co-operative programmes with another strategic shareholder – the World Bank’s International Finance Corporation (IFC). The two signed a VND500 billion (US$31 million) contract to provide loans for Vietnamese clients to buy houses.
All of these domestic-foreign ties are expected to make important contributions to the Vietnamese retail banking market in the future. — VNS
--------------------------------------------------------------------------------
GDP growth-rate expected to reach record 8.5 per cent by end of year
(23-10-2007)
The month-long second session of the 12th National Assembly began yesterday in Ha Noi. The session will focus on Government reports on socio-economic development and draft laws. — VNA/VNS
Ha Noi — Viet Nam’s Gross Domestic Product was expected to grow by 8.5 per cent this year – the highest growth in 10 years, Prime Minister Nguyen Tan Dung told the National Assembly when it began its last session for the year in Ha Noi yesterday.
The high growth rate meant the country was likely to meet many targets set for the 2006-2010 five-year-plan by next year, he said.
The target for next year was to have GDP grow by between 8.5-9 per cent compared with 2007 with a value of about $83 billion and a per capita income of about $960.
A feature of the record growth had been the service industry which had surpassed that of GDP for the first time.
Export revenue increased by 20.5 per cent.
The prime minister described 2008 as: "The pivotal year in the 2006-2010 five-year plan.
"We should rise from being a "developing country with the lowest income," he said.
But the prime minister conceded that Viet Nam’s development was yet to match its potential.
"High economic growth has not been accompanied by a corresponding improvement in quality," he said.
Inadequate economic institutions, administrative procedures, socio-economic infrastructure and human resources were barriers to rapid, sustainable development.
Opportunities would have to be exploited and challenges met to all but accomplish the key targets of the five-year plan two years early.
Prime Minister Nguyen Tan Dung reads out socio-economic development reports. — VNA/VNS Photo
National Assembly Chairman Nguyen Phu Trong opens the second session of the 12th National Assembly. — VNA/VNS Photo
High growth, improved quality, efficiency, competitiveness and economic sustainability were imperative to achieving the target.
"We will mobilise various sources to invest in development, particularly socio-economic infrastructure in 2008," he said.
"We will focus on developing human resources, science and technology. We will continue our administrative reforms, intensify the fight against corruption and bureaucracy, practice thrift and combat waste.
"We are also determined to deal with issues of culture, society and the environment and to stoutly defend our national sovereignty, political security and maintain law and social order."
The prime minister forecast that about 1.7 million new jobs would be created next year and about 85,000 guest workers despatched beyond Viet Nam.
The percentage of poor households would be reduced to 11-12 per cent; the percentage of malnourished children under five, to less than 22 per cent; and the number of hospital beds raised to 25.7 for each 10,000 people.
Per capita living space would be 12sq.m.
The Government also planned to supply 75 per cent of rural Viet Nam and 85 per cent of the urban population with potable water.
It was intended that 60 per cent of pollution-generating enterprises be relocated and forest cover increased to 40 per cent.
Deputy Prime Minister Hoang Trung Hai said inflation in the first nine months could be largely attributed to global factors, particularly oil which had shown increasing volatility.
"Production depends heavily on commodities imported from around the world," he said.
"To curb inflation, the Government has adopted monetary tightening, tax reduction and price control measures."
Hai warned rising prices had seriously impacted low income households and should be monitored vigorously. He called on the public and companies to help address the issue.
The NA also heard reports on State Budget spending in 2007 and plans for 2008, and opinions on a draft law regarding personal income tax.
According to the NA Finance and Budgetary Committee, the Government has made positive efforts to collect revenue for the State Budget, a process complicated by a changing socio-economic environment.
The report, though, sited problems in collecting income and customs taxes.
The number of delinquent payments is high, which has hurt State Budget spending.
Commercial fraud, tax evasion and illegal business transactions have also become more and more sophisticated, according to Phung Quoc Hien, director of the Finance and Budgetary Committee.
In terms of public expenditures, the Government has applied positive measures that have contributed to fulfilling socio-economic goals, ensuring national security and reducing waste.
The committee suggested some principles in allocating the 2008 budget so as to meet economic targets and accommodate ministerial needs.
The committee asked the Government to give priority to remote and mountainous regions where ethnic minority groups live, and to provinces for infrastructure improvements.
After hearing the report on public opinions regarding personal income tax, the majority of NA deputies agreed to the draft law, however there were differing views on items subject to the law, exemption, rates and collection.
Significant inheritances and gifts will be taxed. The NA Standing Committee also listed nine other items that will be subject to the law.
The committee suggested personal income tax should not be levied on overtime salaries. The committee also agreed with a tax exemption on dependants of VND1.6 million per month per person.— VNS
Catfish :O)
"Tra" and "basa" exports likely to reach US $1 billion
VNECONOMY updated: 19/10/2007
“Tra” and “basa” catfish exports are likely to bring in US$1 billion this year, according to an official from the Viet Nam Association of Seafood Exporters and Processors (VASEP).
Local producers have recorded strong gains in markets such as the EU, the US, ASEAN and Ukraine in spite of their strict requirements on food safety and hygiene, according to VASEP Vice President Nguyen Huu Dung.
The Mekong Delta province of An Giang alone has so far this year registered year-on-year increases of 62 percent and 60 percent in the value and volume of exports, respectively.
The province expects to ship 120,000 tonnes of tra and basa catfish, worth US$320 million, in 2007.
To date, local seafood producers have earned a foothold in 75 countries and territories around the world.
In order to raise “tra” and “basa” catfish export turnover, the fisheries sector has urged local authorities to beef up supervision over the misuse of chemicals in catfish farming and build trademarks for the product.
:o)
Im still reading plenty of articles of money and investors pouring into Vietnam....One day...One day!.... everything will fall into place here....
is this why vnd have not revalued?
This early engagement by Viet Nam in WTO dispute settlement is a good sign. Participation as an "interested party" shows the importance given by Viet Nam to the issues at stake and indicates to both its WTO trading partners and domestic constituencies the willingness to find a solution through multilateral processes. — VNS
what other negatives are keeping the vnd down?
Talking Law
(17-10-2007)
WTO dispute settlement: where does Viet Nam stand?
by Paolo R Vergano, FRATINI VERGANO – European Lawyers, Brussels, Belgium
The WTO dispute settlement mechanism, dating back to the establishment of the World Trade Organisation in 1995, is a cornerstone of the WTO system. It provides an instrument through which WTO members can police each other and ensure compliance with agreements and commitments.
The WTO dispute settlement system does not confer immediate and direct rights on private operators and traders, but it may ultimately provide them, through their governments’ actions and representation, with a powerful tool to address international trade disputes, regulatory distortions, discriminatory practices, non-tariff barriers and other impediments that have immediate negative effects.
Despite not having a formal and direct role in WTO dispute settlement proceedings, private businesses may play an important role in assisting their governments, providing evidence of unlawful trade barriers, and working with businesses in third-party countries to try and find a mutually satisfactory solution.
The recent (failed) attempt made by a French company before European courts to recover damages incurred as a result of non-compliance by the EU with the WTO decision in the "beef hormones" case stands as a powerful example of private party involvement in the dispute resolution’s implementation phase. This opens a number of potentially explosive questions regarding Viet Nam’s legal system and its apparent commitment to making international obligations under WTO law enforceable by domestic courts.
For example, should private parties be allowed to invoke future WTO dispute settlement decisions before Vietnamese courts to seek compensation for damages after the expiration of a given reasonable period of time for Viet Nam to comply with a possible WTO ruling? Should a debate on direct effect take place within Viet Nam’s legal community and inform the upcoming ways in which WTO dispute settlement will directly or indirectly affect private parties’ commercial interests? Whatever the case, it appears essential that Vietnamese private operators and foreign companies based in or operating in Viet Nam take an active role in fully understanding WTO dispute settlement rules and procedures and their complex relation with the domestic legal and judicial system.
Interested party rights
The underlying rationale of the WTO’s dispute settlement system is to provide WTO Members with a clear legal framework at the multilateral level for solving trade disputes which may arise in the course of implementing WTO agreements and commitments. Mutually agreed solutions between WTO Members are the most desirable way to solve disputes but, where this is not possible, members can ask for panels and eventually even appeal procedures through which the WTO interprets the relevant rules and adjudicates the controversy. Should a WTO Member not comply with a recommendation to bring its laws or practices in line with WTO rules, then trade compensation or sanctions, for example in the form of duty increases or suspension of WTO obligations, may be authorised.
The system has, so far, worked well to solve significant disputes and avoid ‘trade wars’ or recourse to unilateral measures that could trigger an escalating spiral of protectionism and counter-reactions.
The WTO system appears reliable and effective in terms of both speed and efficiency. By providing a multilateral forum for settling disputes, the mechanism also protects weaker WTO Members against unilateral actions by stronger countries or trading blocs. This is evidenced in the increasing recourse to the system by WTO Members, including developing nations such as Viet Nam.
Viet Nam is still in an early phase of its WTO membership. Traditionally, WTO Members do not engage right away in active WTO dispute settlement and have preferred to exhaust diplomatic and political avenues to amicably resolve trade controversies. At most, recently-acceded WTO Members participate in dispute settlement as "interested parties," something Viet Nam has done in two recent disputes.
The first was a challenge brought by Thailand against a number of US measures taken in relation to shrimp imports. In April 2006, Thailand requested consultations with the US concerning anti-dumping measures on imports of "frozen warm-water shrimps". Thailand contested the US practice known as "zeroing" negative dumping margins, arguing that, through its use of "zeroing", the US had failed to make a fair comparison between the export price and normal value and had artificially calculated distorted margins of dumping.
In October 2006, the WTO established a panel. Brazil, Chile, China, the EU, India, Japan, South Korea and Mexico reserved third-party rights. When, in January 2007, the WTO composed a panel, Viet Nam had joined the WTO and also reserved its third-party rights.
The second case in which Viet Nam will participate as an interested party is a complaint brought by the US against India in March 2007 in relation to "additional duties" or "extra additional duties" that India applies to certain imports, which include wines and distilled spirits from the US. A WTO panel was established in June, and Australia, Chile, the EU, Japan and Viet Nam reserved third-party rights.
This early engagement by Viet Nam in WTO dispute settlement is a good sign. Participation as an "interested party" shows the importance given by Viet Nam to the issues at stake and indicates to both its WTO trading partners and domestic constituencies the willingness to find a solution through multilateral processes. — VNS
Vietnam’s securities growth ranked 24th worldwide
VNECONOMY updated: 17/10/2007
Bloomberg, the breaking financial, business and economic news and Standard and Poor’s, the investment consultants have launched a report on the growth of securities markets in 83 countries worldwide.
Accordingly, Vietnam’s securities market (VN-Index) ranked 24th, with an annual average growth of 43 percent over the last five years. In spite of being 24th, the Vietnam securities markets saw a moderate growth when recording a 10 percent gap between the top ten markets.
In Asia, Vietnam’s securities market followed up India (50 percent), Indonesia (46 percent) and was followed by the Republic of Korea (35 percent), China (33 percent), Singapore (28 percent), Thailand (27 percent), Malaysia (19 percent), and Japan (16 percent).
The report is based on figures from the securities market from October 9, 2002 to October 9, 2007 and the securities growth rate over the past five years.
With an annual average growth of 88 percent, Peru’s securities market took the lead, followed by Ukraine with 84 percent, Bulgaria, with 77 percent, and Brazil, with 74 percent.
http://www.vneconomy.com.vn/eng/?param=article&cateid=01&id=2c55fd0150469d
EU to recognise Vietnam having market economy if …
23:48' 05/10/2007 (GMT+7)
Ms. Corien Wortmann Kool
VietNamNet Bridge – Corien Wortmann Kool, Vice Chairwoman of the European Parliament International Trade Committee, on a working visit to Vietnam, had a talk with the local press Thursday, October 4.
Could you talk about the goal of your working visit to Vietnam this time?
We want to learn about the prospects of reaching a free trade agreement (FTA) between the EU and ASEAN.
Our agenda is working with two nations, Singapore, which is currently the Chairman of ASEAN, and Vietnam, the coordinator.
Coming to Vietnam this time, we want to get some more information, new research on the way of approach and Vietnam’s interests in the FTA negotiation process.
I want to make clear that the EU-ASEAN Free Trade Agreement that we are building is with only seven member nations of ASEAN, excluding Laos, Cambodia and Myanmar. Laos and Cambodia have their own trade deals with the EU while we plan to put an embargo on Myanmar.
What do you think about progress and limitations of Vietnam in promoting the above agreement and its efforts to integrate into international trade?
This is the first trip of the EU Congress to promote the FTA. Though we have been in Vietnam for just two days, we have marked a lot of progress in Vietnam.
Vietnam’s accession to the World Trade Organisation (WTO) last January announces all developments of this country. We recognise Vietnam’s efforts to perform its commitments since becoming a WTO member.
However, it doesn’t mean that Vietnam doesn’t have limitations. In the last two days, we have realised some issues related to the law that Vietnam needs to adjust or better execute.
At yesterday’s meeting, we received complaints from the community of European businesses in Vietnam. They said that some commitments dating back to 1995 had not been realised, especially issues associated with enterprise ownership.
They also complained about the protection of intellectual property. In Vietnam there are many legal documents about this field but the implementation is inconsistent, causing controversies between management agencies and businesses.
Of the seven ASEAN countries that are participating in the EU-ASEAN FTA, Vietnam’s economy is at the lowest level of development. What difficulties will the country face in this integration?
I think this is not a big problem. As a newly emerging economy, Vietnam will benefit a lot when the agreement is signed.
Joining FTA, the important thing is not whether the economy is developed or is developing but the efforts of that nation towards the integration process, particularly its efforts in administrative reforms, creating open and transparent business and investment environment.
The EU doesn’t recognise that Vietnam has a market economy. What should Vietnam do to gain this recognition from the EU?
Vietnam has become a member of WTO. However, due to some restrictions related to laws, regulations on foreign investment, etc. so the EU cannot recognise Vietnam as having a market economy yet.
The biggest barrier of Vietnam at present is the problems associated with its laws and law enforcement. The most outstanding issue is the implementation of intellectual property projection. This is the biggest problem that we see in Vietnam.
Another issue that makes the EU not recognise that Vietnam has a market economy is the discrimination of ownership between local and foreign companies. Vietnam’s laws still have some unequal regulations on foreign companies in Vietnam. This is an unacceptable thing in a market economy.
If in the coming time, the Vietnamese government has more positive changes in the issues related to administrative reforms, rubbing out discrimination, simplifying investment and trade formalities, etc. the EU will recognise Vietnam as a country with a market economy.
How will the EU- ASEAN FTA influence the trade relations between the two sides and what will be the benefits for Vietnam when the FTA is signed?
With 27 EU member countries and 7 ASEAN member nations, a huge market with nearly 1 billion consumers will be created. This will be an extremely great opportunity for all participants, including Vietnam.
Research projects by CEP II and Copenhagen Economics released in April 2007 show that after the FTA is signed, ASEAN can see a growth of exports to the EU by 18.5% while the EU’s exports to ASEAN will rise by 24.2%.
Vietnam and other members of ASEAN will benefit most from FTA. This will be a chance for Vietnam to deeper infiltrate into the EU market and it will create favourable conditions for Vietnam to become a developed country by 2020.
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