Thread: Latest news on the Dong!

Originally Posted by abbey56

Hi,

I have read all the articles and updates on this currency, as with the Iraqi dinar we all have an idea as to its future revaluation and when but i cannot see anywhere as to when (roughly) and as to a figure this currency will revalue at. Any thoughts.

It is so cheap as the US has signed trade agreements with Vietnam as well as the WTO looking into excepting them that I was going to Invest in this no matter what. This is nothing like the Iraq Investment. But I wanted to be way ahead in my purchases at the very very low exchange rate for the future. The last time I looked it was like over 16,000 Dongs to 1USD. And since the US is getting involved, I wanted to be too. Choochie has posted a bunch of Articles, and I have not even read them all yet. But enough for me to start buying.

Not much new information, but good reading just the same...


Associated Press
Vietnam Set to Become 150th WTO Member
By BEN STOCKING 01.10.07, 6:02 AM ET

After years of negotiation and anticipation, Vietnam will officially become the 150th member of the World Trade Organization on Thursday, opening the door to a new era of trade and investment in one of Asia's fastest-growing economies.

Vietnam will be required to slash tariffs and open previously closed sectors of its economy to foreign investors. While many of the changes will take effect immediately, others will be phased in. Foreign banks, for example, won't be allowed to open their own branches until April 1.

Vietnam, in turn, will have increased access to foreign markets and a neutral arbiter to hear disputes that arise with its bigger, more powerful trading partners. It will also benefit from the increased demand for goods and services that increased foreign investment brings.

"January 11, 2007, the day Vietnam officially becomes a member of the WTO, is a historic day for the country," said Le Dang Doanh, a leading government economist. "In joining the WTO, Vietnam is accepting increased competition, and competition will make the economy more dynamic."

While many Vietnamese companies see new opportunities, others are bracing themselves.

"We estimate that after Vietnam joins the WTO, we will lose about 20 percent of our market share to foreign rivals," said Nguyen Van Thoai, deputy manager of the Saigion Cosmetic Corp., which sells perfumes, toiletries and other products.

Many high-end cosmetic firms, such as Shiseido Co. (other-otc: SSDOY.PK - news - people ), L'Oreal SA and Clarins SA (other-otc: CRASY.PK - news - people ), are already operating in Vietnam. But with tariffs on cosmetics being slashed from 40 percent to 20 percent, Thoai expects more firms to enter the market.

"With their well known brand-names and large advertising budgets, they will make the competition even harder for us," he said.

The global trade group's members approved Vietnam's application in November, and the agreement was ratified shortly afterward by communist Vietnam's legislative National Assembly. Under WTO rules, membership becomes official 30 days after Vietnam formally notifies the Geneva-based institution of the vote.

As it negotiated its WTO entrance, Vietnam approved many new laws and regulations intended to bring its business environment in line with international standards. While large, state-owned firms still dominate the economy, the government has sought to level the playing field for foreign and private domestic firms, which are playing an increasingly significant role.

In response to the new market reforms, foreign firms began increasing their investments in Vietnam ahead of the WTO agreement. Foreign direct investment reached a record US$10 billion last year.

While foreign investment is expected to keep growing, Vietnam's WTO entry won't change the economic landscape overnight, said Adam Sitkoff, executive director the American Chamber of Commerce in Hanoi.

"Vietnam has been slowly bringing its trade and investment regime in line with international norms, and that's already made this place an attractive destination for some time now," Sitkoff said.

In spite of the market improvements ushered in by Vietnam's WTO reforms, Sitkoff cautioned that investors shouldn't have unrealistic expectations. Obstacles and challenges will remain, as entrenched interests seek to protect their economic turf.

"This is still a 'socialist-oriented' market economy," Sitkoff said. "That means the government is still preserving a commanding role for many large state-owned companies."

Vietnam Set to Become 150th WTO Member - Forbes.com

What do you guys think about this...?



UPDATE 1-Vietnam's c.bank widens dollar/dong trading band
Mon Jan 1, 2007 4:12pm ET

HANOI, Jan 2 (Reuters) -- Vietnam's central bank said on Tuesday it had doubled the daily trading band of the dong <VND=> to plus or minus 0.5 percent from 0.25 percent.

"The expansion of the trading band is part of our policy to increase the exchange rate's flexibility," a central bank official told Reuters.

He said the new limits against the dollar took effect on Jan. 2.

The central bank sets an official dollar/dong rate each day and allows banks to trade at a 0.5 percent differential to that rate.

The rate was set at 16,101 dong on Tuesday, down 1.4 percent from the rate that was set at the end of 2005.

The currency is expected to decline between 1 and 2 percent in 2007 to support the country's exports, economists have said.

Today's the day isn't it? Vietnam is joining the WTO?!?!

Originally Posted by finwiz

Today's the day isn't it? Vietnam is joining the WTO?!?!

http://www.nic.fi/~repo/catch.swf

Dong is a floating, a supposedly managed float! Maybe there will be pressure placed where they have to get their currency up to at least a penny or a penny/half! Hope so, has been a dry spell! So when you get your fingers around something good, hang on and remember you are the only one that can let it go!

http://www.nic.fi/~repo/catch.swf

That would be awesome!

Sorry if this has been posted already

Vietnam central bank to issue low denomination money

The Vietnamese central bank will supply paper currency notes of lower denominations to meet the spike in demand during next month’s Lunar New Year (Tet), its chief said Wednesday.
Le Duc Thuy, the State Bank governor, said the notes would be of up to a denomination of VND5000 with priority given to 2000, 1000 and 500 notes.
While not specifying the volume, he promised an adequate supply for the festival.
There is a general shortage of low denomination notes after a plan to mint coins partially fell through.
For the last few years the central bank has been promoting the use of coins and hired foreign firms to mint some two billion dong worth.
But after half the amount was minted the plan was postponed when the contractors demanded three times higher prices for minting.
Besides, people remain uncomfortable with using coins and there are not many coin vending machines installed in the country.
Meanwhile, the State Bank had gradually begun to withdraw paper money in circulation.

Vietnam latest news - Thanh Nien Daily

Foreign groups eager to increase share of local bank


Two banking groups are awaiting the Vietnam central bank’s raising of the cap on foreign ownership of Vietnamese banks to buy an additional 10 percent stake of two local banks, some sources said.

Under Vietnam’s current banking regulations, a single foreign investor is eligible to own a maximum 10 percent stake in a commercial bank, and total foreign holdings are capped at 30 percent.

The central bank’s anticipated move to raise the cap would mean the HSBC group could own 20 percent of the Technological and Commercial Joint Stock Bank, or Techcombank, the country’s third-largest joint stock bank by assets.

Likewise, an official of the Vietnamese Orient Commercial Joint Stock Bank, or OCB, said the bank was ready to sell an additional 10 percent of its shares to the French banking group BNP Paribas, which last year acquired a 10 percent stake of OCB.

A source said HSBC may agree to pay a lofty US$85 million for the new deal, of which $71.5 million would be in cash and the remaining transferred under the form of technological and managerial assistance to turn Techcombank into the leading commercial bank in Vietnam.

Industry insiders said the price was five-times higher than the sum of $17.3 million the banking group had paid to acquire the first 10 percent stake in Techcombank in 2005.

HSBC now holds one seat on Techcombank’s board of management and has sent experts to provide advice about management, control and services. One high-level HSBC expert works with Techcombank’s executive board.

Techcombank, scaled up its chartered capital to VND1.5 trillion ($93.8 million) late last year.

Its pre-tax profit last year was VND355.8 billion ($22 million), a year-on-year increasr of 19.6 percent. Expected dividend is 26 percent, which will be paid by shares.

Techcombank shares on the unofficial stock market are rather high at VND60 million ($3,738) per share on the face value of VND5 million ($311).

Compiled by Dong Ha

HSBC insurance arm comes to Vietnam


HSBC Life International Ltd., HongKong and Shanghai Banking Corporation’s life insurance arm, entered the Vietnam market Wednesday, opening a representative office in Hanoi.

The office will research the market, survey customers’ needs, and draw up strategies for a full-fledged entry into the insurance market.

David Fried, director of HSBC Insurance Asia-Pacific said Vietnam’s fast-growing economy, low insurance penetration, and sound legal framework were factors for the insurance business.

HSBC said opening the representative office was an important step in the banking group’s development

HSBC Life International Ltd. is one of the four insurers under the umbrella of HSBC Insurance Asia-Pacific Holdings Limited, one of Hong Kong’s leading insurers and the biggest provider of pension products.

Source: VietnamNet – Translated by Dong Ha

Vietnam attracts $305 mln FDI in new year


Vietnam has already attracted US$305 million in worth foreign direct investment (FDI) this year with the Ministry of Planning and Investment attributing it to the country’s WTO membership.

Another $45 million has been pumped into existing projects.

The ministry said Japanese investors topped the list with a $100 million project to develop a new urban area in the northern Thai Nguyen province.

Vietnam has set itself an FDI target of $11 billion for the year.

Phan Huu Thang, head of the ministry’s Foreign Investment Department, said the target was achievable because of the country’s improved business climate.

Several mammoth projects that were under consideration were feasible, he said.

The central task in 2007, according to the ministry, is to enforce reform laws to make the business environment friendlier.

The government is putting more effort into administrative reform, fighting corruption, and other measures needed to enhance the country’s competitiveness in attracting FDI.