Thread: Latest news on the Dong!

Vietnam eyes $10 billion in US shipments in 2007


The Ministry of Trade expects Vietnam’s exports to the United States would jump from $8 billion last year to US$10 billion this year, heard a conference in Hanoi Tuesday.

Speaking at the commercial counselors’ conference Tuesday, Nguyen Duy Khien, Vietnamese commercial counselor at the US said the country would see mounting shipments to the US, fuelled by lifting trade barriers under WTO rules.

“Vietnam could see a 30 percent increase in export to the US market in 2007,” he said.

Khien added that Vietnam’s entry into the WTO was also a factor encouraging foreign companies to run business in the country, of which many had targeted the US export market.

The US is a giant importer of consumption items so the targets of high export turnover from the market are achievable, but it relies heavily on supplying and competition ability of the local exporters, according to the US-based Vietnamese Commercial Affairs (VCA).

The US spends an average $1.7 and $1.8 trillion on importing consumption goods annually, with the figure increasing each year.

American importers have tended to focus on a certain number of exporters to manage product quality and create pressure on price reduction.

Vietnam’s textile industry will find it easier to market and develop Vietnamese clothing trade with the US as numerous US apparel enterprises expect to cooperate with Vietnam in place of strategic rival, China.

He also emphasized the US is a choosy market that requires massive quantity, good quality and competitive prices.

Other than the well-organized operation of key export items such as coffee, pepper, footwear and fisheries and manufacturing, many Vietnamese goods remained small-scale and unorganized.

Overall tasks

Speaking the conference, Deputy Prime Minister Nguyen Sinh Hung urged Vietnamese commercial counselors abroad to act as bridges for enterprises and both domestic and foreign investors.

He required commercial counselors to provide information on markets, investment, import and export policies to enterprises and industrial associations in a timely fashion.

Additionally, they should also made proposals to the government, ministries and state policy bodies to develop foreign markets, he said.

The Ministry of Trade said this year, exports would bring in at least $47.7 billion, and an increase of 20 percent over last year, with commodity exports expected to fetch $80 billion by 2010.

To achieve these targets, Trade Minister Truong Dinh Tuyen asked foreign trade representative offices and commercial counselors to focus on increasing international market access to local firms and products and improve studies on political situations, market, commodities, policies and export management measures in foreign markets.

It is crucial to boost trade promotion, help local firms find partners and markets, and take part in trade fairs, he said.

The country has established 55 offices for commercial counselors in foreign countries and seven branches in the general consulates in main markets.

Last year it gained an export turnover of $39.6 billion, an increase of 22.7 percent over the previous year, with highly competitive Vietnamese products available in global markets thanks to great contrition of commercial counselors.

Source: Thanh Nien, Sai Gon Giai Phong – Compiled by Dong Ha

Premier Oil confident Vietnam blocks commercial


UK oil explorer Premier Oil believes its exploration blocks in Vietnam will soon be shown to contain commercially exploitable quantities of gas, the company's chief executive said Thursday.

"We're pretty confident that we have commercial discoveries there," Simon Lockett told Reuters in a telephone interview.

The company is still appraising the fields but Lockett said he expected to announce resource additions related to Vietnam when the ocmpany reports its full-year results in March.

Source: Reuters

Vietnam's stock market roars skyward


Vietnam's stock market had a spectacular year in 2006, with the main index up 144 percent to close at 751 points at year's end.

In the new year, it has only gotten stronger. The VNIndex topped 800 on January 5, and 900 on January 12. This week, it has neared 1,000.

At the Bao Viet Securities Company in Hanoi, which trades shares listed on the Ho Chi Minh City exchange, trader Tran Sy Tiep says he has never been so busy.

Tiep says the traders have no free time at all lately. He says they get home from work at midnight every night.

The rising index partly reflects the strength of Vietnam's economy, which grew eight percent last year. The country joined the World Trade Organization on January 11, signaling that its export-driven economy should continue to grow.

Dominic Scriven is the managing director of Dragon Capital, which manages over a billion dollars in Vietnamese assets and securities. Scriven says Vietnam's growing economy is awash with cash.

"So liquidity needs to find a home. And given that the real estate market is not quite as active as some people had hoped it might be, it's easy to see that liquidity can flow into markets for other assets, like financial assets," said Scriven.

But many observers feel the economy's fundamentals cannot account for the extraordinary rise. Vietnam's stock market is still small, with just 106 companies listed. Some stocks are already trading at price-to-earnings ratios of 30 to one. That means the price of one share is more than 30 times the company's earnings per share. In most markets, ratios over 20 are considered high and a sign that a market is nearing its top.

In a report issued in mid-December, the International Monetary Fund's Hanoi office cautioned investors against what it called "irrational exuberance". At the time, the VNIndex stood in the mid-700s. It has risen over 200 points since.

The governor of Vietnam's State Bank has warned that the prices of some shares involved "illusory factors." He said that many Vietnamese companies release misleading financial statements.

"Yes, there is a kind of element of overexcitement, in a way going beyond the capacity of the market, going beyond the capacity of the regulatory authority at this moment. The market development is too fast, in a way," said Noritaka Akematsu, the lead financial economist at the World Bank's office in Hanoi.

Noritaka says the exchange's infrastructure has improved, but is still inadequate to handle the volume of trading. He says the Vietnamese authorities cannot ensure that companies report their earnings accurately, or that trades are properly settled. Investors, he says, should be careful.

"With inadequate transparency, it is difficult to do fundamental analysis," he said. "I hope they will invest more on the fundamentals of individual stocks, rather than just going like a casino, or a game."

Some of the exuberance has seen in other parts of Asia, where exports have driven economic growth higher. Most of the region's stock markets rose sharply last year. In China, where economic growth was more than 10 percent, Shanghai's main stock index more than doubled last year. Mumbai's index was up more than 50 percent, as the economy expanded by more than eight percent.

Dragon Capital's Scriven says while the risks are real, they are inevitable in a young market like Vietnam's.

"I think anybody who follows this equity market has got to raise their eyebrows slightly at the level of activity. Equally, I have a suspicion that it's possibly not that easy to avoid, because there are sort of growing pains, and you need to have bull markets [rising markets] and you need to have bear markets [falling markets]," he said.

At the moment, the Vietnamese market is as bullish as a bull market can be.

Source: Chosun Ilbo/VOA News

Vietnam and like many other emerging Asian economies.... they are the kind to look up to and start recognising their dynamic rage and determination...COME WHAT MAY... and they will show you just how vibrant they pose with their daring spirits unlike many European Govts that take the "wait & see" attitude as always....

If you want to be in the forefront of an up and coming to booming outburst... Asia is the next stop!!!


YB. - Cheers to all looking, planning and heading that direction...

Sorry if this has been posted...but I like reading it ...

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

VietNamNet Bridge – Australia and the United Kingdom have pledged US$15mil in support for a technical assistance programme geared to help Vietnam implement its commitments to the World Trade Organisation (WTO).

VietNamNet Bridge

VietNamNet Bridge – Commercial banks are still buying dollars from export companies, but just at moderate levels. Meanwhile, exporters are being advised to keep dollars in their accounts. What is happening?

Ok, here is the part of the article that makes me go hmmm...

Will VND revaluate?

Why is the state bank refusing to buy dollars? A trustworthy source said that the quota for putting VND into circulation for 2006 has run out. The General Statistics Office (GSO) said that the consumer price index (CPI) rose by 6.6% in 2006 and the central bank fulfilled its tasks of curbing the inflation.

Experts guess that the central bank will soon resume buying dollars as there will be the quota for putting VND into circulation for 2007. If so, the dollar excess will be resolved.

An official from the State Bank said that the bank must consider pluses and minuses, and especially the possible impact on prices when buying or selling dollars. “The central bank must not let the VND revaluate,” the official said.

However, the dollar is a kind of commodity and its price depends on supply and demand. When supplies are high, the commodity price must go down, and the VND will revaluate against the dollar.

A question has been raised about what the VND/US$ exchange rate should be to ensure the suitable inflation rate, the currency value stabilisation, the supply and demand balance, while creating liquidity to the market. At this moment, exporters are complaining that the high VND value makes Vietnamese goods less competitive in the international market, and the revaluation of the local currency should not be prolonged.

Ok help me break this down (to make sure I am reading this right).

Trade restrictions on Vietnam were eased with its WTO accession on January 11, and foreign companies found business prospects in the country.

The Metro Cash & Carry from Germany is planning to open four more outlets with the investment of US $17 million for each one.

The company is already operating with its six outlets and has annual revenues of $259.5 million.

Metro Group Buying (MGB) has established a procurement office in HCMC, which will distribute textile, garment, footwear, furniture globally through Metro’s network in 28 countries.

Another player from Malaysia Parkson retail group, plans to open 10 commercial stores in Hanoi, Danang, Can Tho, and Ba Ria-Vung Tau with an investment of about $70 million.

The group has recently opened its second outlet in Hai Phong.

Vindemia the leading European retail group will open superstore in Danang during this year.

Vietnam : WTO membership unlock opportunities for foreign retailers - General News Vietnam

These things happening with the Dong is stuff I've been told to look for with the Dinar!

Someone WAY smarter that me could please explain this article. It has been re-hashed again today...

Vietnam's Vietnamese dong lending rates continued to fall in the past week on the interbank market amid ample short-term funds, bankers said Monday.
Four state-run banks, the country's key lenders, quoted overnight loans at between 6 percent and 6.3 percent, from a range of 6.5-7.5 percent last Monday and 7.8-8.0 percent two weeks ago.
"Most banks are sitting on a lot of cash right now so short-term rates would stay low for now," a banker at a foreign bank in Ho Chi Minh City said.
Bankers said attractive interest rates, as high as more than 9 percent per year, triggered a surge of around 26 percent in dong deposits at banks last year while lending only grew by 17 percent during the same period, resulting in a surplus.
"The surplus should only be temporary as borrowing demand especially for long-term funds for capital investment and infrastructure development by large corporations is enormous," another banker in Hanoi said.
Major projects include a scheme by the Transport Ministry to invest $20 billion to upgrade national roads and bridges in the next four years.
Dominant utility Electricity of Vietnam has also said it would seek bank loans of $860 million this year alone to build new grid and power plants.
In addition bankers said the fast-expanding stock markets in Ho Chi Minh City and Hanoi also triggered demand for the dong from foreign and Vietnamese investors to invest in shares.
The VN Index on the Ho Chi Minh City Securities Trading Center which lists 107 companies, has risen more than 32 percent already in 2007.
"The explosion of Vietnam's stock exchange has drawn interest from foreign investment funds to plow money into Vietnam, resulting in enormous demand to sell foreign currency for the dong," the central bank said in its January market report.
On the dollar front the bank said dollar supply was robust in January thanks to a record influx of foreign direct investment last year, forecast at $10 billion, and a record high level of around $4 billion in remittances from overseas Vietnamese.
On Monday, the dollar was quoted at 16,045/16,047 on the interbank market compared with the official rate of VND16,126.

Vietnam latest news - Thanh Nien Daily

More great new because of there WTO membership...

Vietnamese President Nguyen Minh Triet signed Monday a document for the country's accession to an International Labor Organization (ILO) convention on eliminating forced and compulsory labor.

The convention, adopted by the ILO General Conference in 1930, stipulates that each member that ratifying this convention has to adopt measures to eradicate forced or compulsory labor in all forms in the shortest possible period.

The accession is expected not only to create harmonious labor relations in Vietnam but also help the country implement its WTO and US bilateral trade agreement commitments.

One hundred seventy of the ILO’s 178 members, including nine ASEAN member-countries, have joined the convention.

Vietnam latest news - Thanh Nien Daily

Hey, anything to push up the rv of the Dong!