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My Pleasure. Lets hope they make some sound decisions and SOON.
Kuwait firm inks $6bn Vietnam refinery deal.................
by Nguyen Nhat Lam on Monday, 07 April 2008
Vietnam on Monday took another step to becoming self sufficient in fuel, sealing a $6 billion joint venture deal for its second refinery with Kuwait and Japanese firms, state-owned Petrovietnam said.
The company, which holds a monopoly over Vietnam's oil and gas sector, said Kuwait Petroleum International (KPI) and Japanese refiner Idemitsu Kosan Company will each hold a 35.1% stake in the plant, while Petrovietnam will hold a 25.1% stake.
It said a fourth partner, Mitsui Chemicals, would take a 4.7% share in the project.
The Nghi Son refining and petrochemical complex is the country's first foreign investment in the refining sector, Petrovietnam officials said.
Officials said the refinery in the Thanh Hoa province, about 200 kilometres south of the capital Hanoi, is expected to go onstream in five years and will have a daily capacity of 200,000 barrels that could double in future.
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"Kuwait Petroleum Corporation (KPC) and KPI has committed themselves to long-term supply of all crude oil demand from the project estimated at 10 million tonnes per year at initial stages, and possibly raise to 20 million tonnes when the project is expanded in future," a statement from the joint venture said. It did not give a timeframe when the capacity will be doubled.
Vietnam's Prime Minister Nguyen Tan Dung and three deputy premiers, as well as Kuwait's oil minister was at the signing ceremony.
About 70% of the construction costs for the plant will be procured through project financing from the Japan Bank for International Cooperation.
The Nghi Son refinery is designed to produce annually 2.1 million tonnes of gasoline - 92, 95 and 98-octane grades - 2.67 million tonnes of diesel, 790,000 tonnes of kerosene and jet fuel, as well as 500,000 tonnes of liquefied petroleum gas (LPG), a feasibility study by Idemitsu showed.
Petrovietnam officials have said products from the refinery will be for domestic use and any extra barrels will be exported.
Vietnam's first refinery, the 140,000 barrels per day (bpd) Dung Quat facility - 100%-owned by the government - is scheduled to start operations in 2009, after years of delays due to fund shortages and design changes.
Unlike Dung Quat, which will use up to 80% of the local light sweet Bach Ho crude, Nghi Son will rely entirely on Kuwaiti crude supply.
Petrovietnam is holding talks with several foreign firms including Venezuela' PDVSA for a third refinery with capacity of at least 140,000 bpd in the country's southern region, its top fuel consumption centre, as part of efforts to be oil product self-sufficient by 2015.
Despite being Southeast Asia's third-largest crude producer with output averaging 300,000 bpd, Vietnam still relies almost entirely on oil product imports as it lacks major refineries.
In addition to the three main refineries, Hanoi has also licensed a number of smaller private refineries but none of the projects have materialised due to lack of funding and access to secure crude supply.
Last November Hanoi, which had been banning foreign firms from distributing oil products, offered to allow overseas investors in the Nghi Son project to sell directly to the domestic retail market. To do this, Idemitsu, KPI and Mitsui Chemicals must form a joint venture retail company.
But Hanoi said it would only open the retail market to foreign firms other than the Nghi Son investors after five years of the refinery's operation.
Consumption of refined oil products in the country of 85 million people and 20 million motorbikes stands at about 250,000 bpd and expected to grow 13-15% a year in the next three years, energy experts have said.
The economy is growing at more than 8% and inflation is at double digits, one of the highest in Asia. (Reuters)
thanks for all the updates...
NEWS 4 TODAY-4-6-08
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Experts examine WTO repercussions
(05-04-2008)
Shopkeepers at Hai Ba Trung Street, Ha Noi, are stocking air-conditioners in preparation for the summer. WTO membership has allowed Viet Nam to access a wider source of goods, which means more options for local consumers. — VNA/VNS Photo Bui Tuong
HA NOI — The Ministry of Industry and Trade and a delegation from the European Commission met on Wednesday to discuss the challenges faced by Viet Nam since joining the World Trade Organisation one year ago.
"There was much progress made within 2007, including a sharp increase in export turnover and GDP, and especially a record-breaking amount of foreign investment," Nguyen Thanh Bien, deputy minister of industry and trade, said.
"At the same time, Viet Nam’s economy has faced a high trade deficit and skyrocketing inflation, which is getting worse this year because of the changes in the global economy."
Assessing the progress of WTO membership was difficult because other trade agreements had also affected Viet Nam’s economy before it entered the organisation, several experts said.
An economic expert with the EU delegation, Professor Claudio Dordi, said that determining the positive impact of WTO admission was very hard "and the negative effect is another side of the coin".
He said that reforms made upon joining gave Viet Nam’s economy more freedom. However, this also made the economy more vulnerable to such things as inflation or intense competition.
Consequently, the professor advised the Vietnamese Government to be cautious when rolling out any policy or plan related to trade or economy.
Antonio Berenguer, trade counsellor with the delegation of the European Commission to Viet Nam, said the country had earned more than half of its foreign investment from other trade agreements that it had signed, including the ASEAN Free Trade Area (AFTA) Agreement.
Viet Nam’s many bilateral and multilateral trade agreements, such as the US-Viet Nam Bilateral Trade Agreement and one with the EU, were already in force before the country joined the WTO.
Identifying the specific impact of WTO admission was not easy, Berenguer said.
"Other non-economic factors like the recent slowdown of the US economy, the political instability of many countries, and the Vietnamese stock market’s falling also create a remarkable impact on trade," he said.
Despite such confusion, most leading experts agreed that the country’s growth rate of 8.5 per cent in the first year after joining the WTO showed positive signs.
Le Dang Doanh, former director of the Central Institute of Economic Management, found that a more open market and, thus, a wider source of goods bringing more options for local consumers, were two pluses.
In addition, WTO membership had spurred the Government to further administrative reform, empowering its competitive competence in the international market.
Last year, Viet Nam attracted more than $20 billion in foreign direct investment, equal to the total of the previous five years.
The nation’s export revenues also reached $48.4 billion, a year-on-year rise of more than 20 per cent.
The securities market also developed, with its capital accounting for more than 40 per cent of the nation’s gross domestic product.
Dang Duc Anh, an economic expert with the Vietnamese Ministry of Planning and Investment, said the high growth rate, a record for the past decade, was due to domestic investment and consumption.
The prices of Vietnamese goods remain competitive due to the depreciation of the greenback against the currencies of Viet Nam’s major trade partners.
If the inflation rate remains high, however, Viet Nam will lose its price competitiveness compared to regional rivals, especially when the US dollar regains its value, experts warned at the meeting.
To maintain a high economic growth rate, speakers suggested that Viet Nam accelerate reform and improve the growth quality and competitiveness of all sectors in the economy.
Viet Nam needs to maintain its competitive advantage in major staples like footwear, textiles and apparels and farm produce, experts said.
They also warned Vietnamese businesses to examine the WTO’s regulations to devise more effective business strategies. — VNS
NEWS TODAY-4-4-08-RICK C
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Financial minds link at summit
(04-04-2008)
DA NANG — The US-ASEAN Business Council has led a delegation of top US financial executives to the ongoing 12th ASEAN Finance Ministers Meeting in Da Nang.
The group comprises representatives from AIG, Citibank, GE Money, State Street Bank & Trust, Standard & Poor’s, and Visa.
It is being led by the council’s president Matthew Daley and head of Banking and Markets for ASEAN at Citibank and chairman of the council’s Financial Services working group, Piyush Gupta.
Daley said: "The council has had the honour of hosting a dialogue with the 10 ASEAN finance ministers and American business leaders for the last several years. Being able to formally attend their annual meeting is a unique opportunity for American executives, because ASEAN’s finance ministers are playing leadership roles in both inter- and intra-regional economic integration and capital market development initiatives in Asia."
This year’s mission to the ASEAN Finance Ministers Meeting comes at a time when economic and financial stresses in several major economies are causing instability in global markets.
The delegation has been able to exchange views with the ministers individually and in a group.
Gupta said: "In talking with ASEAN financial sector policy makers, we as investors and market participants recognise the challenges they are facing. However, even during the current period we also see opportunities for ASEAN nations to push ahead with the kinds of financial sector structural reforms and regional integration efforts that could significantly enhance both the resilience and profile of the region’s economies and markets globally."
Tom Clark of GE Money Asia noted: "Meetings like this are important opportunities for us to meet with finance ministers and other senior regulators … to offer our private sector perspective, discuss global best practices, and suggest approaches to policy and regulation that will promote growth and translate into a win-win for [everyone]."
During its two-day mission, the delegation also met with Viet Nam’s Minister of Finance Vu Van Ninh, Deputy Minister of Finance Tran Xuan Ha, State Bank of Viet Nam Governor Tran Van Giau, Singapore’s Minister of Finance Tharman Shanmugaratnam, and secretary general of ASEAN, Surin Pitsuwan.
According to the US-ASEAN Business Council’s figures, trade between the US and the ten ASEAN nations exceeded US$170 billion last year. — VNS
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IF VN DOESN'T REVALUE it's DONG CURRENCY , They will Not succeed in their business plan with the western world.JMO and the Dealers will be Holding them for a Very long time -with NO Buyers interested.
Vietnam oil revenues rise 71 per cent in first quarter
Posted : Fri, 04 Apr 2008 05:42:01 GMT
Author : DPA
Category : Business
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Hanoi - Vietnam National Oil and Gas Group posted total revenues of nearly 69.4 trillion dong (more than 4.3 billion dollars) in the first three months of this year, up 71 per cent year on year, a company official said Friday. The daily Vietnam Economic Times reported that the company's revenues represented 20 per cent of Vietnam's entire GNP for the quarter.
The state-owned conglomerate, known as PetroVietnam, extracted 3.77 million tons of crude oil and 1.87 billion cubic meters of natural gas in the first quarter of 2008, according to senior group executive Dinh Van Son.
PetroVietnam exported 3.67 million tons of crude oil in the period for earnings of 2.75 billion dollars, representing 21 per cent of Vietnam's total export revenues.
Vietnam exports all of its crude oil output and has to import all petroleum products for domestic consumption. Imports of gasoline and other refined petroleum products cost 2.81 billion dollars for the quarter, adding slightly to the country's trade deficit.
The country's reliance on imported petroleum products is expected to ease when its first oil refinery becomes operational in 2009. Dung Quat Oil Refinery will be capable of refining more than six million tons of crude oil a year.
Last month, the prime minister instructed state-owned companies to freeze the prices of 10 important commodities, including petroleum products, in a bid to contain high inflation that reached 9.2 per cent in the first quarter of this year.
A PetroVietnam official said the price-freeze would not hurt the company's revenue growth, as rising world crude oil prices will compensate for the rise in the import prices of refined petroleum products.
PetroVietnam exported 15.72 million tons of crude oil, bringing in 8.8 billion dollars, in 2007.
NEWS 4TODAY-March 31 2008=====
" The US dollar has regained some ground "
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Rising dollar keeps exporters happy
(29-03-2008)
HA NOI — The US dollar has regained some ground against the Vietnamese dong over the past two days, easing some of the stress of the nation’s exporters.
The State Bank of Viet Nam yesterday listed the interbank exchange rate at 15,960, while Vietcombank yesterday listed dollar/dong buy/sell prices at a healthier 16,090/16,120.
The figures mark a sharp appreciation of 1.8 per cent of the dollar against the dong since Wednesday, when the central bank announced it would buy up dollar to support exporters.
It was also the first time this year that both buy and sell prices have peaked above VND16,000.
On the open market, gold shops yesterday were offering VND16,125 to VND16,135 against VND15,480 only ten days ago, an even more substantial four-per-cent appreciation of the dollar.
"Traders are coming back to the dollar," Nguyen Huu Dang, director of the business department of Ha Noi-based Bao Tin Minh Chau Jewelry Co, told Viet Nam News yesterday.
"The number of customers who came here today to buy dollar was much higher than the number who came in to sell. They believe the US dollar will move up even further over the next week."
The central bank has been buying up dollar from commercial banks at negotiated prices, and some commercial banks have bought US dollar on the market to sell to the State Bank.
The State Bank purchase then withdraws the excess dollar out of circulation, further increasing their value.
"Purchases between Vietcombank and the central bank have been carried out normally," said Nguyen Danh Luong, executive director of operations for Vietcombank. He refused to specify, however, the volume of US dollar in each purchase.
The State Bank’s director of Monetary Policy, Nguyen Ngoc Bao, attributed the dollar appreciation to the greenback’s strengthening against other world currencies, as well as growing imports.
In the first three months, import value reached US$20 billion, while exports netted $13 billion. The $7.3 billion trade deficit in the first quarter outstrips the pace set last year, when the trade deficit for the entire year was $12.4 billion.
The stronger dollar would benefit exporters, particularly exporters of agricultural products sold on highly narrow profit margins, so the strengthened US dollar would benefit farmers first, said Asia Commercial Bank deputy director Nguyen Thanh Toai.
Viet Nam Rubber Association general secretary Tran Thi Thuy Hoa said that commercial banks were more readily buying US dollar from rubber processing enterprises if they proved they had good export contracts.
Tran Van Gia, permanent vice chairman of the Viet Nam Tea Association’s Science Council, worried, however, that the appreciation of the dollar "would not last due to the US economic crisis. So the association has urged the Government to direct regulators to buy up dollar from our members." — VNS
I AGREE, or they'll find themselves out in left field. Poverty is still running Rampant there and the people are Not living as a Human being should. It is still as a friend said " A VERY THIRD WORLD COUNTRY". They -The Govermant would love to have the world believe it's doing all it can to benefit it's People there, That's BS. It's benefiting the People IN POWER ONLY.
I say BOYCOTT any item from there untill they REVALUE , and stop helping to SLAM THE US DOLLAR. JMO.
looks like they need to do a more aggressive reval now
NEWS IS NEWS- We grab all we can get.lol------------
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Bank heads arrive for conference
(18-03-2008)
HA NOI — Banking leaders from around the world yesterday gathered for the first day of a three-day conference run by a well known Singapore-based private company, The Asian Banker, to discuss financial risks in an unchartered age.
At a press conference, senior banking officials stressed the importance of education and high corporate governance by Vietnamese banks to avoid financial risks.
As an emerging market, speakers said Viet Nam was going through a learning process. This meant it could adopt best practices from other nations and people with experience.
However, they said it was not an overnight process. "Building up necessary skills takes time. Don’t rush, but do it properly," said David Eldon, chairman of the Asian Banker Summit Advisory Council and chairman of the Dubai International Financial Centre Authority.
Eldon recommended local banks learn the best and worst from overseas banking. Other speakers warned that financial methods of overcoming serious risks were probably not present in Viet Nam.
China an example
The Vietnamese Government, which has had to deal with the double-digit inflation since the end of last year, hopes to keep inflation below the targeted 9 per cent economic growth this year.
In February, Consumer Price Index (CPI) increased by 15.7 per cent, its highest level for more than 10 years.
A series of bold monetary policies to curb inflation has been implemented, including lifting interest rates, higher compulsory reserves, issuing treasury bills, tightening property and securities lending and limiting credit growth.
"It’s really a difficult question when you want continued economic growth and at the same time you want to have inflation under control, said Paul Sarbanes, a former US senator and co-author of the Sarbanes-Oxley Act.
"Balancing the two requires very careful adjustment on how you move ahead."
Eldon said there were many ways of dealing with inflation. "As the senator says, using interest rates as the first line of defence [will slow down economic growth]".
He said in China the Government had been trying for several months to curb inflation. It had raised interest rates and curbed lending in several sectors, for example, to try to lower property prices.
China kept inflation under some control, but at the same time kept the economy growing and provided employment.
Many Vietnamese experts at the summit said they were concerned that foreign-investment in Viet Nam was putting more inflationary pressure on the shoulders of the top regulators’ (the Government, central banks and Government ministries) trying to beat inflation.
There were some recommendations that the country should give privilege to some foreign investments in certain sectors to give the Vietnamese system more time to learn how to manage them.
However, most speakers declined to suggest specific economic and monetary policies for the Viet Nam Government to follow.
Late on Sunday, the summit presented awards and letters of commendation to 12 banks and their IT partners for technological excellence in the financial services industry.
The Asian Banker Leadership Awards were awarded to 37 people in the banking industry.
Banking institutions
There are five state-owned banks in Viet Nam covering 57 per cent of the local market, 34 joint stock commercial banks (26 per cent), 41 branches of foreign banks (9.4 per cent), 52 offices of foreign credit institutions, 989 people’s credit funds, nine financial companies, 12 financial leasing companies, one social policy bank and one development bank. — VNS
NEWS 4 TODAY-------------
Vietnamese, South Korea legislative leaders meet
(22-03-2008)
Republic of Korea NA Speaker Lim Chae Jung welcomed Vietnamese NA Chairman Nguyen Phu Trong in Seoul yesterday. — VNA/VNS Photo Tri Dung
SEOUL — Viet Nam’s development has remained slow despite its socio-economic achievements over the past years, said National Assembly Chairman Nguyen Phu Trong.
Therefore, Viet Nam was determined to realise its modernisation and industrialisation goals to become a developed industrial nation by 2020, Trong said in his talks with the Republic of Korea’s (RoK) National Assembly Speaker, Lim Chae Jung, in Seoul yesterday.
In order to reach these goals, Viet Nam would need support from its international friends, the RoK would be an important partner in Viet Nam’s economic development, Trong said.
Receiving the Vietnamese NA’s delegation on its official friendship visit to the RoK, Speaker Lim Chae Jung said he was pleased by the fruitful development of RoK-Viet Nam relations since the two countries established diplomatic ties in 1992.
Jung said that relations had been well-developed not only in politics, but in economic, cultural and social fields as well.
Chairman Trong said that he believed the visit would be highly successful in boosting friendship and multifaceted co-operation between the two legislative bodies.
Chairman Trong said during the talks that the Vietnamese people, who had suffered through the north-south division, empathised with Koreans’ desires for peace and reunification in the Korean peninsula, and supported all efforts to do so.
Yesterday afternoon, Trong and other NA delegates attended a business forum held by Korean and Vietnamese Chambers of Commerce and Industry.
Trong said that Viet Nam-Korea economic ties had a sound and solid political and cultural foundation, and that he hoped the forum would facilitate businesses from both countries seeking investment and co-operation opportunities.
He said that Viet Nam had a strong determination to reform, integrate and improve its investment environment. The country wanted to attract stronger, more effective and higher-quality investments from South Korea.
Korean Chamber of Commerce and Industry president Shon Kyung Sick, along with Commerce, Industry and Energy Minister Lee Yoon Ho, both said Korea had a special interest in Viet Nam as a business partner with great potential.
They witnessed the signing of four bilateral co-operation packages worth US$1.15 billion. These included a $600-million package between Korea’s IDEA Company and Viet Nam’s Sai Gon Investment Corporation to develop a new urban area in HCM City, and a $300-million document between Daewoo Capital and Viet Nam Association of Small and Medium-Sized Enterprises.
Also yesterday afternoon, NA Chairman Trong received Kaengnam Corporation president Woan Jong Sung, investor of the $800-million Kaengnam Ha Noi Landmark Tower construction project.
Trong said that he hoped the Kaengnam president would do his best to complete the tower in time for Ha Noi’s 1000th anniversary in 2010, but more importantly, that the project would be of high quality, good design and deserving as a symbol of friendship between Ha Noi and Seoul.
Receiving another guest, Daewoo Capital president Dong Rhim Lee, Trong said that he hoped the corporation would share its experiences and assist Viet Nam in further training its finance and banking personnel. — VNS
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i thought I would share this E-MAIL from a close friend, take it for what it's worth to you all.
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Rick, My parents are in Singapore right now at the Swissotel, after being in Saigon for two weeks. I ll get the lastest scoop on Ho-Chi-Min City when they return next week. But from what they said it is very third world still in Vietnam, a free for all. Like China was 25 yrs ago. But look where China is now. So now may be a good time , if they tell me it looks very promising.
Doug
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I sure hope our Investment pays off for all of us. Rick c
Sorry for the MIS-Spelling- Please POST "YOUR" THOUGHTS.
Who has seen this - WHAT are OYUT THOUGHTS-
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Friday, March 21, 2008
Time to be nervous: Credit Suisse
The Swiss bank Credit Suisse has released an analysis of Viet Nam’s economic prospects in its survey about emerging markets – it emphasises the difficulties Vietnam is facing.
‘Viet Nam: Time to be nervous’ is the heading of the part in the survey that talks about Viet Nam. High inflation is the first challenge the report mentions. Record foreign capital inflow and high economic growth have been forcing prices up in Viet Nam, especially food and foodstuff prices.
Credit Suisse forecasts that the CPI, after gaining the record increase of 15.7% in the first two months of 2008 over the same period of last year, will exceed the 18% threshold in the first half of 2008.
According to Credit Suisse, the government of Viet Nam has been paying special attention to measures to curb inflation; however, Viet Nam needs stronger macroeconomic measures. The government of Viet Nam wants both goals: high economic growth and low inflation. The measures to tighten the monetary policy applied in the last time have not brought the desired effects.
High inflation and bubble burst prove to be real risks for the next 12 months.
It is highly possible that the government of Vietnam will still maintain the currently applied measures, and hope that inflation will be eased once global economic growth slows down.
Credit Suisse thinks that the VND will continue appreciating against the dollar and VND value will increase by 4-5% by the end of this year. By that time, one dollar will be converted to VND15,200. The State Bank of Viet Nam has two times widened the forex trading band in the last three months, which also means that the forex trading band will be widened further in the time to come.
Credit Suisse’s experts believe that the VND revaluation is the best choice the government can make.
It is likely that Viet Nam will make new moves in its monetary policies, like controlling prices of several key products, raising the discount interest rate and compulsory reserve ratio. The discount interest rate may rise by another 1% to 7% in the first quarter of 2009.
Despite the said difficulties, Credit Suisse still thinks that Viet Nam’s economy will maintain a high economic growth rate in the medium term. However, the bank has slashed the forecasted economic growth rate to 8.5% from the previously forecast level of 9.1%. (TBKTVN)
http://snipurl.com/22b0q [www_vnbusinessnews_com]
Thanks and Regards,
Ken Kuhn
(630)-631-6407
902 S. Randall Rd. Suite C337
St. Charles, Illinois 60174
United States
www. dealorbuydinar.com
You might want to call KEN or ALI- See them in the I BOX See what they would offer you for them now. I WON'T buy any more.
Too long a Gamble -Not real good odds either in my way of thinking.JMO
The Vietnamese dong may advance to 15,000 by the end of this year, Newnham said in an e-mail to Bloomberg, a level unseen since September 2001.
The dong traded at the strongest against the dollar since August 19, 2005.
The currency was little changed at 15,862 per dollar Wednesday, according to prices compiled by Bloomberg.
The government told the State Bank of Vietnam to widen the band to 2 percent, according to a directive posted on the cabinet’s website on March 4.
unfortunately i have 500m dong at 13,700 buy price ,so i break even 2 yrs from now?
Currency Converter Results
Friday, March 14, 2008
1 Vietnamese Dong(s) = 6.30318e-05 US Dollar(s)
1 USD = 15865 VND
1 VND = 6.30318e-05 USD
Sunday, March 16, 2008
1 Vietnamese Dong = 0.00006419 US Dollar
1 US Dollar (USD) = 15'579.5 Vietnamese Dong (VND)
Median price = 0.00006214 / 0.00006419 (bid/ask)
Minimum price = 0.00006211 / 0.00006416
Maximum price = 0.00006228 / 0.00006433
FXTrade: Online Currency Trading with OANDA FXTrade.
FXConverter - Currency Converter for 164 Currencies164 Currency Converter © 1997-2008 by OANDA.com.
NOW Read this Piece-
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Vietnam warned by IMF
By Amy Kazmin in Bangkok
Published: March 10 2008 23:39 | Last updated: March 10 2008 23:39
The International Monetary Fund has warned Vietnam that its fast-growing economy is overheating. It has advised Hanoi to adopt a more flexible exchange rate regime and to tackle imprudent lending practices by commercial banks, in order to help control inflation.
“There are increasing signs that the economy is overheating, threatening sustained economic growth in the medium term,” Shogo Ishii, the assistant director of the IMF’s Asia and Pacific department, wrote on the fund’s website.
EDITOR’S CHOICE
Demand drives opportunity in Vietnam - Mar-09
Vietnam to extend currency trading band - Mar-06
Hanoi shaken from economic complacency - Mar-02
Vietnam upbeat on growth - Mar-02
Edited transcript: Nguyen Tan Dung - Mar-02
Vietnam’s currency crisis causes headache - Feb-26
In meetings with top government officials last week, Benedict Bingham, the IMF’s resident representative, suggested that authorities rely on “controlled increases in interest rates”, rather than quantitative targets, to curb credit growth, which rose to about 50 per cent last year.
In a statement on Monday Mr Bingham also said a more flexible exchange rate regime would “help make monetary policy more effective in controlling inflation, and help ease the current disequilibrium in the foreign exchange market”.
The IMF also called for the government to impose greater restraint on borrowing by state enterprises. It also noted that Vietnam’s current account deficit is preliminarily estimated to have risen to about 10 per cent of GDP in 2007.
Vietnam’s Communist authorities are battling to curb inflation, which, driven by higher food and energy prices, hit 15.7 per cent in February and has fuelled labour unrest, especially among factory workers who say they cannot make ends meet.
The State Bank of Vietnam, the central bank, currently sets a daily exchange rate, which was 16,025 to the dollar on Monday, but the currency, the dong, has appreciated only 0.5 per cent against the dollar this year. In unregulated gold shops, meanwhile, the dong was trading at a far stronger 15,500 to the dollar.
Banks are only allowed to trade the currency within a narrow band around the official rate every day, although the central bank widened the band on Monday to 1 per cent up or down, from the previous 0.75 per cent.
However, economists say Vietnam needs a more flexible policy for fixing its daily official exchange rate, rather than just widening the band.
Vietnam has been buffeted by global currency realignments that have seen many Asian currencies, including the Chinese renminbi, strengthening against the US dollar.
With the US as the largest market for its exports, Hanoi had tried to peg its currency to the dollar, thus weakening the currency. But since China is Vietnam’s biggest supplier, imports have become more expensive, fuelling inflation already fanned by credit growth.
The central bank has sought to curb inflation by sucking liquidity out of the financial system. But that has created a shortage of the local currency hindering normal business transactions.
Vietnam imports inflation
IMF believes that with current policies, Vietnam is importing inflation and needs to take a new approach that makes every effort to reduce the rate to a single-digit level.
Price storm
2007’s inflation rate of 12.63% was a huge concern to Vietnamese people and authorities. However, what worries economists most is that Vietnam’s inflation rate was much higher than other regional countries, though dealing with the same influences from price increases on the world market. ADB’s member countries had an average inflation rate of 3.4% in 2005 and 3.3% in 2006.
According to IMF expert Bennedic Bingham, Vietnam’s situation is not actually very serious, but it is necessary to discuss measures to curb inflation now, before Vietnam suffers more serious consequences.
As for countries like Vietnam, it is not easy to control inflation because of outside factors that are completely out of its control, according to Chairman of ADB Haruhiko Kuroda.
Suffering poverty
This isn’t Vietnam’s first battle with inflation, in 2004 it hit 9.4%. However, current factors are very different.
First, the dollar keeps devaluating, which raises questions regarding Vietnam’s exchange rate policy which currently aims to stabilize the exchange rate.
Second, the foreign investment capital flow to Vietnam has become bigger and bigger. The State Bank of Vietnam has to buy foreign currencies and put VND into circulation, which has resulted in even higher inflation. Vietnam’s money supply growth rate is significantly bigger than regional countries.
In a country with a high population and a high population growth rate, the number of poor people may increase correlatively with high inflation. Only a small number of Vietnamese people can make financial investments to protect themselves from price increases. Meanwhile, poor people cannot protect themselves. They rely on their daily income.
Prior to that, ADB also asserted that high inflation will lower the purchasing power of poor people and have bad impacts on economic growth.
Importing inflation
Price increases in 2007 have been affecting many countries, but Vietnam’s developing economy is hit quite hard. The inflation rates of other countries in the region are much lower than Vietnam’s, including China, which has higher economic growth than Vietnam.
IMF’s experts believe the main factor explaining why China’s, Malaysia’s and Thailand’s inflation rates are lower than Vietnam’s lies in its exchange rate policy.
One of Vietnam’s primary goals is to stabilize the VND/US$ exchange rate to encourage export, and recently the dollar price has been fluctuating around the globe; meaning Vietnam imports the factors that cause inflation.
Meanwhile, other regional countries let exchange rates fluctuate in accordance with world changes. The dollar has devaluated 9% against the euro, and 7% against the yen, which means that the prices of commodities in dollars are increasing very rapidly. Other regional countries have wisely let exchange rates fluctuate in accordance with the dollar value, because this can help prevent the commodities prices from skyrocketing due to the devaluation of the dollar.
New policies, new ideas
International experts believe Vietnam needs a new exchange rate mentality and monetary policies.
Vietnam should not try to keep the VND/US$ exchange rate stabile, while ignoring the fluctuations of the dollar prices on the world market, experts say. If Vietnam takes this approach, it will see inflationary pressures eased and will not have to spend so much VND buying foreign currencies.
http://snipurl.com/2061c [www_vnbusinessnews_com]
Thanks and Regards,
Ken Kuhn
(630)-631-6407
902 S. Randall Rd. Suite C337
St. Charles, Illinois 60174
United States
www. dealorbuydinar.com
You may unsubscribe or change your contact details at any time
I hope some find this interesting Reading-Even if it is a little Old in the News Dept, Sent to me By Ken at DEAL OR BUY DINAR-Rick c
Some of you may have recently seen the reports stating that the Vietnamese Government accepted a 2% revaluation of the VND for 2008.
http://snipurl.com/21m54 [www_vnstocknews_com]
While this is significant in that they have officially now taken action and ended the 11 year old policy of depreciation of the Dong, I was still a little taken aback by the very low rate for 2008.
It seems contrary to what appears to be a new anti-inflationary strategy by the Vietnamese government. I do not know this but I am wondering if the IMF's warning below is a response to that revaluation level as well. They appear to be of the opinion that it is inadequate and that the Vietnamese government will have to do more.
-Ken
RODAYS NEWS------
Vietnam warned by IMF
By Amy Kazmin in Bangkok
Published: March 10 2008 23:39 | Last updated: March 10 2008 23:39
The International Monetary Fund has warned Vietnam that its fast-growing economy is overheating. It has advised Hanoi to adopt a more flexible exchange rate regime and to tackle imprudent lending practices by commercial banks, in order to help control inflation.
“There are increasing signs that the economy is overheating, threatening sustained economic growth in the medium term,” Shogo Ishii, the assistant director of the IMF’s Asia and Pacific department, wrote on the fund’s website.
EDITOR’S CHOICE
Demand drives opportunity in Vietnam - Mar-09
Vietnam to extend currency trading band - Mar-06
Hanoi shaken from economic complacency - Mar-02
Vietnam upbeat on growth - Mar-02
Edited transcript: Nguyen Tan Dung - Mar-02
Vietnam’s currency crisis causes headache - Feb-26
In meetings with top government officials last week, Benedict Bingham, the IMF’s resident representative, suggested that authorities rely on “controlled increases in interest rates”, rather than quantitative targets, to curb credit growth, which rose to about 50 per cent last year.
In a statement on Monday Mr Bingham also said a more flexible exchange rate regime would “help make monetary policy more effective in controlling inflation, and help ease the current disequilibrium in the foreign exchange market”.
The IMF also called for the government to impose greater restraint on borrowing by state enterprises. It also noted that Vietnam’s current account deficit is preliminarily estimated to have risen to about 10 per cent of GDP in 2007.
Vietnam’s Communist authorities are battling to curb inflation, which, driven by higher food and energy prices, hit 15.7 per cent in February and has fuelled labour unrest, especially among factory workers who say they cannot make ends meet.
The State Bank of Vietnam, the central bank, currently sets a daily exchange rate, which was 16,025 to the dollar on Monday, but the currency, the dong, has appreciated only 0.5 per cent against the dollar this year. In unregulated gold shops, meanwhile, the dong was trading at a far stronger 15,500 to the dollar.
Banks are only allowed to trade the currency within a narrow band around the official rate every day, although the central bank widened the band on Monday to 1 per cent up or down, from the previous 0.75 per cent.
However, economists say Vietnam needs a more flexible policy for fixing its daily official exchange rate, rather than just widening the band.
Vietnam has been buffeted by global currency realignments that have seen many Asian currencies, including the Chinese renminbi, strengthening against the US dollar.
With the US as the largest market for its exports, Hanoi had tried to peg its currency to the dollar, thus weakening the currency. But since China is Vietnam’s biggest supplier, imports have become more expensive, fuelling inflation already fanned by credit growth.
The central bank has sought to curb inflation by sucking liquidity out of the financial system. But that has created a shortage of the local currency hindering normal business transactions.
The Economy might be doing better, However the Common people are starving and Unemployment is not helping them. The coutry needs to Revalue the Dong Now to aid all it's people. I say BOYCOTT anything from there untill they do.jmo.
my cousin won a free vacation there in 1968. lol. thinking of buying some dong matt??
I think the currency will do just that as it has since 2003 and during War. Things are getting more peaceful now and Oil is via Iraq -> Europ/U.S. already. There is a great imbalnce between Iraq and the rest of the world still and this is even when the Dinar is tied to the dollar. Saudia Arabia is tied to the dollar and they were just awarded billions from the U.S. for defence. This was primarily targeted against Iran who prays to allah that Iraq doesn't pass them up when the incursion starts...how embarrasing would that be for the little Napolean known as Mahmoud Ahmadinejad? Oh well Venzuela just voted out Hugo Chavez...the two bandits in favor of the basket peg via the GCC. Well now we know it has been rejected and tabled 2010+....
Interesting struggles over there and I see someone worried about some serious Iraqi potential....
Great to see Oil being produced there. That will have to help out this country. Alot of things are going in favor for this Asian Tiger Market. And IMO it will continue to improve. Now if the currency would follow the recovering economy?
Vietnam find ‘to flow 15,000 bpd by 2010’....................
--------------------------------------------------------------------------------
08 January 2008 03:32 GMT | last updated: 08 January 2008 04:34 GMT
Vietnam's newly discovered Nam Rong-Doi Moi oilfield is expected to produce about 15,000 barrels of oil per day by 2010, a Petrovietnam official said today.
"The crude specification is not available yet but we suspect it is of the heavier type," the official said.
Oil flowed from the field at 4150 barrels per day during the testing, operator VRJ Petroleum Company, 50% owned by Russian state oil company Zarubezhneft, said in a statement today.
The field lies 135 kilometres south-east of Vietnam's oil hub province of Ba Ria-Vung Tau.
State oil group Petrovietnam owns a 35% stake in the venture and Idemitsu Cuu Long Petroleum Company, an unit of Japanese oil refiner Idemitsu Kosan, has 15%.
http://www.upstreamonline.com/live/article146700.ece
Investment funds cannot buy VND for transactions
06/01/2008
Foreign investment funds complain that they cannot purchase VND at this time to serve their disbursement needs for investment deals.
Trinh Viet Cuong, Representative from Japanese owned Asiavantage investment fund, said that since November 2007, his fund has been queuing up to buy VND for the second time in the year (the first one was in April, 2007).
A representative from another foreign fund said that he had to pay an additional fee of 0.4% of total transaction value to successfully purchase VND.
In general, investment funds always keep their money in several hard foreign currencies, while not keeping VND for fear of high inflation, and they only convert the money into VND when they need VND to make transactions.
“Previously, we could decide when to buy VND, but we cannot do that these days, because banks can refuse to serve us. Therefore, we have to buy VND at the time set by banks and at the exchange rates set by banks,” said Mr Cuong from Asiavantage.
Mr Cuong related that in order to purchase 3mil shares of Hoang Anh Gia Lai Group, Asiavantage had to seek to buy VND one month before the transaction time for fear that it cannot arrange enough VND right after the negotiations between the fund and Hoang Anh Gia Lai wraps up.
“We had to buy VND even when we knew that the VND/US$ exchange would go down,” he said, adding that the fund incurred the loss of several billion VND.
VinaCapital and Dragon Capital have not facing such big difficulties like Asiavantage, because they can sell the shares they hold to get VND and restructure their portfolio investment. However, Dominic Scriven, Managing Director of Dragon Capital, acknowledged that it is now not easy to buy VND as previously.
According to Vu Thanh Tu Anh, Lecturer at Fulbright Teaching Programme, the fact that investors find it difficult to buy VND has been anticipated. The State Bank of Vietnam has been trying to tighten the monetary policy in order to reduce the VND in circulation, the move that aims to curb inflation.
Mr Anh, on one hand, acknowledged the necessity of the monetary policy tightening, on the other hand, said that the over-tightening would cause shocks to the stock market and real estate market, which may slow down the economic growth.
Source: VIR
ARTICLE from Dec 16 /07 USA TODAY-Worth reading.
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Change also bringing prosperity to Vietnam
Companies struggle to retain employees
By David J. Lynch
USA TODAY
VINH CUU, Vietnam -- The South Korean-owned factory, which produces millions of Nike athletic shoes every year, employs ceiling fans and an open-air design to keep its assembly lines comfortable in the heat.
Workers strolling between buildings on the manicured industrial campus wear pastel-hued polo shirts. Nearby, cheerful managers lead training sessions in air-conditioned rooms.
Yet, one of the biggest problems for Nike and its Korean partner is hanging onto employees. Every year, more than one out of five workers leave for another job in Vietnam's rapidly developing economy, where wages for some skilled positions are rising by double-digit annual percentages.
"Because people have so many more options, it's harder to retain people," says Shirley Justice, Nike's chief representative in Vietnam.
Now enjoying its third consecutive year of more than 8 percent annual growth, Vietnam is on its way to becoming the latest Asian nation to swap a history of colonial poverty for hard-earned prosperity. On bustling factory floors and crowded city streets, the Vietnamese are visibly leaving old ways behind and embracing the certainty of better days ahead.
Outsiders are noticing: Commerce Secretary Carlos Gutierrez last month brought executives to Vietnam from 22 U.S. companies, including Ford, Dow Chemical and 3M, to scout business prospects.
"Our relationship is growing very rapidly. But it could be a lot bigger, and it should be a lot bigger," Gutierrez says.
As Vietnam seeks to attract more U.S. investment, however, investors such as Nike are increasingly concerned about the country's ability to surmount looming bottlenecks. Chief among them: a shortage of skilled workers and woefully inadequate roads, ports and rail links.
Vietnam is a key link in Nike's global supply chain: Last year, the company based in Beaverton, Ore., shipped 75 million pairs of shoes from its Vietnamese suppliers and expects to ship 81 million pairs next year. Nike says its footwear and clothing orders keep 200,000 Vietnamese workers employed, so its views carry weight here.
Vietnamese officials recognize the need for action but regard the problems as the inevitable consequence of rapid -- and long overdue -- economic growth.
After Vietnam was forcibly unified by the communist North Vietnamese in 1975, it spent a decade mired in disastrous economic experiments that brought it to the brink of famine. In 1986, communist authorities launched "doi moi," a policy of market-based reforms, which seemed to mimic earlier Chinese market-friendly moves.
Like its northern neighbor, Vietnam is a one-party state whose leaders are more interested in economic change than in political liberalization.
Only in recent years has the economy begun to gather steam, averaging 7.8 percent annual growth from 2001 to 2006.
A young, well-educated population of enterprising workers and eager consumers is drawing the gaze of multinational corporations, long mesmerized by China's much larger market. Foreign direct investment exceeded $10 billion last year and is on pace to top $12 billion this year, thanks in part to Vietnam's joining the World Trade Organization in January.
Vietnamese officials say they are determined to avoid the excesses of Chinese-style reforms, such as a politically dangerous gap between rich and poor. But globalization isn't yet an epithet here.
At Pace Educator, a business school in Ho Chi Minh City, enrollment of about 7,000 midcareer students is up from 1,000 in 2001. Mercedes-driving Gu Tu Trung, 32, the company's chairman, says he provides Vietnam's budding chief executives the "global vision" they need to succeed.
"I tell them where we live is not Vietnam but the globe. And if you keep the old way of thinking, you can't survive," he says.
The capitalist transformation is molding the next generation. At Le Qui Don high school, one of Ho Chi Minh City's best, teachers overhauled the curriculum to encourage students to search for answers on their own rather than receive information passively, says principal Pham Van Phiet.
When a visiting journalist asks a classroom full of teenage students what they want to be when they grow up, one young man stands and confidently replies in English: "I want to be a businessman like Bill Gates."
In the capital, Hanoi, the target of fierce U.S. bombing raids in the 1970s, the streets are thick with noisy motorbikes. KFC outlets of Louisville's Yum! Brands draw enthusiastic crowds. Flat-screen television monitors tuned to the Bloomberg financial channel adorn sleek investment offices.
Since 1993, economic advances have slashed the share of the population living in poverty by almost two-thirds.
This summer, World Bank President Robert Zoellick on a visit to Hanoi hailed Vietnam for achieving "one of the fastest improvements in living standards in the world" and said the country was on course to join the ranks of middle-income nations, such as Brazil and Mexico, by 2010.
Despite breathtaking changes, Vietnam's economy is small. Total economic output of about $62 billion is roughly equal to U.S. retailer Target's annual revenue.
Foreign investors complain that the communist bureaucracy remains opaque and, at times, corrupt. Vietnam ranked 165th of 178 countries in investor protections, according to a recent World Bank survey.
http://snipurl.com/1whiy
You will be fine in that great country. Stick to the larger cities, find you a guide, and they will stick with you for VERY little pay. There are Tons of beautiful scenes especially the women there are GREAT.
Tuesday, January 1, 2008
1 Vietnamese Dong = 0.00006354 US Dollar
1 US Dollar (USD) = 15'738.0 Vietnamese Dong (VND)
Median price = 0.00006142 / 0.00006354 (bid/ask)
Minimum price = 0.00006142 / 0.00006354
Maximum price = 0.00006142 / 0.00006354
FXTrade: Online Currency Trading with OANDA FXTrade.
FXConverter - Currency Converter for 164 Currencies164 Currency Converter © 1997-2007 by OANDA.com.
Banking & Finance
Banks can sell dollars for less; surplus unaffected
VNECONOMY updated: 27/12/2007
The State Bank of Vietnam (SBV)’s decision to widen the VND/US$ exchange rate limit is applauded by commercial banks. However, experts say the move is a short-term bonus that doesn’t solve the long-term problem – the superfluous dollar.
On December 24, the Governor of SBV decided to expand the VND/US$ exchange rate margin to +/-0.75% from +/-0.5% (the exchange rates applied by commercial banks can be 0.75% higher or lower than the central bank’s daily rate announcement).
The decision was made after the central bank was criticized heavily for idly watching as commercial banks suffered the consequences of the dollar excess. Over the last several months, regulations restricted commercial banks from quoting the dollar below 0.5% of the price announced by the SBV.
On December 25, one day after the central bank’s decision was issued, exchange rates offered by Eximbank were VND16,018/US$1, VND16,030/US$1 and VND16,040/US$1 for purchasing dollars in cash, purchasing via bank account and selling dollars, respectively.
Meanwhile, Vietcombank’s purchase price was VND16,035/US$1 on December 15, and VND16,000/US$1 on December 25.
Deputy General Director of a joint stock bank said the central bank’s decision will help ease the burden on commercial banks and allow them to be more flexible in their business. However, the decision will not solve the greater problem of the dollar overload.
While the dollar supply remains profuse, the demand for dollars remains low, despite any slight recent increase, he said, adding that the dollar can only recover its strength if the central bank buys dollars for VND as it did in the first seven months of the year.
Regardless of effectiveness, the central bank’s decision has been applauded by commercial banks that are happy to see any sign of activity.
Though the central bank is criticized for not intervening, experts are saying the state bank is afraid of taking responsibility for inflation if it spends more VND to buy dollars.
Source: VIR
Banking & Finance
Banks prepare to take over stock trade accounts
VNECONOMY updated: 26/12/2007
Beginning March 1, investors must deposit their cash with commercial banks instead of securities companies, under a new regulation from the Ministry of Finance and the State Securities Commission of Viet Nam.
The new regulation was passed to ensure that transactions were transparent and secure.
A number of banks, including Vietcombank, Asia Commercial Bank, Techcombank and Eximbank, have already begun to create new services for these new customers, including a reduction of maintenance fees and better linkage with securities companies.
Banks say the most effective way of trading will be through an online system. Any trades will be communicated online to the bank that handles investors’ accounts.
ACB, for example, has signed a deal with five securities companies to offer these services and are in discussion with seven other securities companies to possibly finalise another agreement.
Vu Duc Toan, an ACB manager, said the bank had plans to work with 40 securities companies.
Dong A Bank has signed an agreement to work with five securities companies.
Tran Hoai Phuong, Empower Securities acting general director, said: “We will cooperate with commercial banks to manage the accounts of stock investors online. This is the trend for the stock market here.”
Nguyen Ngoc Truong Chinh, Dong Duong Securities deputy general director, said a securities company could only work with a limited number of banks because of the start-up and maintenance fees.
According to Chinh, the most important criterion in choosing a bank to work with is that it has a large branch network.
Investors can then deposit their money at any branch instead of bringing the cash to securities companies.
Source: Vietnam Agency
For those Interested in Foriegn Investments, This could be good-
"Investors said shares in Sacombank and Asia Commercial Bank ACB.HN, Vietnam's two listed banks, could rise if an upcoming initial public offering by state-run Vietcombank on Dec. 26 prices the shares above their starting price of 100,000 dong each.
Vietcombank, the country's largest firm to conduct an IPO, is slated to raise at least $604 million through the sale of 97.5 million shares, or 6.5 percent of its stock, at the auction this Wednesday, the exchange has said.
After the IPO, Vietcombank executives have said the bank planned to list on the Ho Chi Minh exchange by the end of the first quarter next year at the earliest. ($1=16,113 dong) (Reporting by Ho Binh Minh; Editing by Rory Channing)
Home
Business & Finance
UPDATE 2-IFC to reduce stake in Vietnam's Sacombank
Mon Dec 24, 2007 6:17am EST
Get 100 Commission-Free Trades (Adds 2008 profit projection, Vietcombank IPO)
HANOI, Dec 24 (Reuters) - The World Bank's International Finance Corp, which owns 7.6 percent of Sacombank STB.HM, will sell more than a quarter of its shares in the bank, Vietnam's largest listed firm, the stock exchange said on Monday.
Starting on Tuesday, the IFC will sell 8.9 million Sacombank shares over a six-month period to reduce its holding to about 25 million shares, the Ho Chi Minh Stock Exchange said in a statement. It gave no reason for the sale.
Ho Chi Minh City-based Sacombank, or Saigon Thuong Tin Bank, is the country's sixth-largest lender by assets.
Shares in the bank, the first listed lender in the communist-ruled country, closed flat at 66,500 dong ($4.13) on Monday, valuing it at $1.84 billion.
Sacombank is now the largest listed firm among 137 companies on the Ho Chi Minh exchange.
The IFC along with Dragon Capital and Australia and New Zealand Banking Group (ANZ.AX: Quote, Profile, Research) own a combined 30 percent of Sacombank, the ceiling for foreign ownership of listed banks in Vietnam.
Last week the Ho Chi Minh exchange said ANZ was seeking to buy 703,000 shares in Sacombank over a three-month period starting Dec. 21 to boost its holding to 10 percent of the bank.
Earlier this month, Sacombank said its 11-month gross profit soared 187 percent from a year ago to 1.35 trillion dong ($83.8 million) thanks to a rise of 125 percent in lending.
Total assets of the bank were up 147 percent at the end of November from a year earlier, to 57.6 trillion dong ($3.6 billion), the bank said.
Sacombank aims to lift its gross profit next year to 2.5 trillion dong, Chairman Dang Van Thanh said in an interview with the official Saigon Giai Phong newspaper last week.
Investors said shares in Sacombank and Asia Commercial Bank ACB.HN, Vietnam's two listed banks, could rise if an upcoming initial public offering by state-run Vietcombank on Dec. 26 prices the shares above their starting price of 100,000 dong each.
Vietcombank, the country's largest firm to conduct an IPO, is slated to raise at least $604 million through the sale of 97.5 million shares, or 6.5 percent of its stock, at the auction this Wednesday, the exchange has said.
After the IPO, Vietcombank executives have said the bank planned to list on the Ho Chi Minh exchange by the end of the first quarter next year at the earliest. ($1=16,113 dong) (Reporting by Ho Binh Minh; Editing by Rory Channing)
© Reuters 2007 All rights reserved
Well, maybe this will be the beginning of the good things we have been waiting for concerning the dong. You have a Merry Christmas Rick.
Updated: New York, Dec 24 08:23London, Dec 24 13:23Tokyo, Dec 24 22:23
Economy
Bloomberg Press
Vietnam Widens Daily Trading Band for Dong to 0.75% (Update3)
By Beth Thomas and Nguyen Dieu Tu Uyen
Dec. 24 (Bloomberg) -- Vietnam widened the daily trading band for the dong, giving the central bank more scope to slow inflation by allowing the currency to strengthen.
The dong can now trade 0.75 percent either side of a rate set by State Bank of Vietnam each day, compared with 0.5 percent previously, according to Dao Xuan Tuan, head of foreign-exchange management at the bank.
The country has allowed the currency to strengthen by 1.3 percent since Aug. 20 as consumer-price inflation accelerated to a 10 percent annual pace in November, the fastest in more than three years. The dong is little changed in the year, following an 11-year run of depreciation designed to make the nation's exports more competitive.
Vietnam faces ``a dilemma with trade deficits growing and inflation picking up,'' said Masashi Kurabe, head of the foreign-exchange sales & trading group in Hong Kong at Bank of Tokyo-Mitsubishi UFJ Ltd., part of Japan's largest lender. ``The country may be aiming to reduce money supply'' by allowing currency appreciation, he added.
The dong gained 0.11 percent to 16,032.5 against the dollar as of 4:25 p.m. in Hanoi. It closed last year at 16,042.5. The central bank has devalued the dong every year since 1995.
The new band is ``to give commercial banks more flexibility in trading the dong and to go more in line with market rates,'' Tuan said in an interview from Hanoi today.
Trading Opportunities
The State Bank set a reference rate for the currency of 16,113 today, 0.4 percent weaker than its current price. The dong strengthened as much as 0.5 percent more than the reference rate on Dec. 21. The central bank last widened the band on Dec. 31, 2006, expanding it from 0.25 percent.
``It's good news for commercial banks,'' Ly Xuan Hai, chief executive officer of Asia Commercial Bank, Vietnam's biggest listed company, said in a telephone interview from Ho Chi Minh City. ``This opens up more opportunities for us to trade the dong now.''
Vietnam's restrictions on trading the dong mean that DBS Group Holdings Ltd. and Australia & New Zealand Banking Group Ltd. have been trading offshore derivatives contracts tied to the future value of the dong, known as non-deliverable forwards.
``A more flexible exchange rate could improve the effectiveness of monetary policy and buffer the economy from the effects of volatile capital flows,'' a report released by the International Monetary Fund and World Bank last week recommended.
Foreign Investment
Demand for Vietnamese stocks and rising foreign direct investment has put pressure on the dong to gain this year. Vietnam's currency strengthened to as much as 15,977 against the dollar on Feb. 13, the most since at least 1993. The benchmark VN Index of stocks reached a record high on March 12.
Vietnam's foreign investment jumped 69 percent this year to $20.3 billion, Thoi Bao Kinh Te Viet Nam reported today, citing the Ministry of Planning and Investment. The government expects economic growth to quicken more than 9 percent next year.
``Direct foreign investment has been increasing in Vietnam,'' said Kurabe. ``With China's employment costs rising, many foreigners are now trying to build factories in Vietnam.''
Hon Hai Precision Industry Co., the world's largest contract electronics manufacturer, plans to invest $5 billion over the next five years in Vietnam to make parts for personal computers, digital cameras and mobile phones. Hon Hai joins Taiwanese companies including Compal Electronics Inc. that have announced plans to set up factories in Vietnam to cut costs.
The trade deficit more than doubled to $10.47 billion from January to November as the country imported more machinery, steel, and fertilizer. The policy of weakening the dong has made the cost of goods that Vietnam imports more expensive in local currency terms.
To contact the reporter on this story: Beth Thomas in Hanoi bthomas1@bloomberg.net .
Last Updated: December 24, 2007 04:46 EST
Same to you Rick, seems a couple of us are still here. Same here on the Dong. I'll be working in Las Vegas the months of Jan & Feb. Who knows maybe i'll get a SLOT MACHINE to REVAL for me.lol TC & MERRY CHRISTMAS.
US, Viet Nam to strengthen trade, investment relations
Washington, Dec 22 (VNA) - The United States and Viet Nam share the goal of continuing to strengthen the trade and investment relationship between the two countries, said an official from the US Trade Representative (USTR).
Stephen J. Norton, Assistant Press Secretary of the USTR, was speaking with a VNA correspondent of the first Ministerial-level meeting of the Trade and Investment Framework Agreement (TIFA) Council convened in Washington DC on Dec 17.
The Head of the Vietnamese TIFA delegation was Nguyen Xuan Phuc, Minister-Chairman of the Government Office, and the US TIFA delegation was led by Susan C. Schwab, United States Trade Representative.
The meeting focused on Viet Nam 's implementation of its World Trade Organization (WTO) commitments as well as measures to further deepen trade and investment relations between the United States and Viet Nam .
According to Norton, the meeting provided for an extremely productive dialogue on the full range of priority issues.
"The United States and Viet Nam will continue to work together closely on the range of issues discussed during this meeting," he said. "Both sides agreed on a regular exchange of information under the TIFA to facilitate
this closer cooperation. The US will support Viet Nam's ongoing efforts to implement its WTO commitments and advance its economic reform agenda."
According to the official, in the area of agricultural trade, the two sides will continue their efforts to facilitate market access for key products such as poultry and beef for the US and tropical fruits for Viet Nam .
In services, the US and Viet Nam discussed coordination to ensure a smooth transition as Viet Nam liberalises its service sectors in line with its WTO commitments.
The US will continue to support Viet Nam's efforts to fully implement its commitments to provide strong protection for intellectual property rights for Vietnamese and foreign firms.
The two sides also agreed to cooperate on ways to enhance U.S. capacity building assistance to Viet Nam for trade-related reforms and to seek greater participation from the respective private sectors in the trade
dialogue.
The US and Viet Nam agreed to meet quarterly under the TIFA to assess progress on joint work already underway, discuss ways to address new issues as they arise, and to consider new initiatives.(VNA)
Today In Asia : Last Update : 08:04:28 22 December 2550 (GMT+7:00)
Hows everybody doing over here these days...I still drop in and read from time to time and keeping the faith that this reval will happen sooner than later....Time will tell...Has anyone bought any dong lately? Im holding tight with what I have and probably wont buy anymore at this point. But who knows...
Anyway, everyone have a Merry Christmas and take care!
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
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