Thread: Latest news on the Dong!

Requirements for setting up banks to be announced in April: Governor
16:57' 28/03/2007 (GMT+7)

VietNamNet Bridge – The State Bank of Vietnam (SBV) will announce the detailed requirements for setting up new banks in April instead of March as requested by the Government, SBV Governor Le Duc Thuy told the press this morning.

Investors rush to set up banks as bank shares are hot

Investors are rushing to establish new banks, while there is not an official legal document about the issue. How would you comment about the movement of bank establishment?

Soạn: HA 1068091 gửi đến 996 để nhận ảnh này

I can see two things from the movement. First, the banking sector proves to be a lucrative investment channel, as no one would inject money in an unprofitable field. Second, investors possibly do not think carefully when making investment. They rush to set up banks just because they find bank shares very hot. If they set up banks and sell shares, they can earn fat profit, VND5 for every VND1 of investment.

However, they have to know that the central bank also knows that very well, and does not intend to let investors earn fat profit just by setting up banks. The job of the central bank is to set transparent and strict regulations in order to ensure the sustainable development of the banking system. For example, only those who really want to be bankers can establish banks, because they would not be allowed to transfer shares within five years of the day of the banks’ establishment. Besides, investors must satisfy other strict requirements, including ones on business plans.

Experts have given warnings about money laundering by injecting money in the stock market and establishing new banks. What do you think about the warnings?

These things are possible. People may throw dirty money into the stock market to get legal money, and they want to show to the public that they earn money from the stock market, not from corruption deals. Competent authorities must consider carefully when they check the sources of assets and examine the transparency of assets. The central bank and I do not take the main responsibility in this job. My job is to run the centre for anti-money laundering, so as to avoid untransparent money remittance.

Please don’t think that people set up banks because they want to wash money. In principle, investors would make investment in where they find profitable. However, the management authorities still have to set up rules to avoid bad things.

The anti-money laundering centre was once put under the management of the SBV’s inspection agency. However, it has just been restructured and put under the direct control of SBV’s Governor so as to get bigger power.

SBV has received 8 applications for setting up banks in Vietnam

As far as I know, the Prime Minister has asked SBV to declare the requirements for setting up new banks in March. How far has the preparatory work for the declaration gone?

The draft regulation has been sent to relevant ministries to collect suggestions. I’m afraid that the official requirements could not be declared in March as the central bank has not received replies from the ministries. I think April would be more feasible.

Do you mean that the establishment of new banks will be delayed until the official document is enacted?

In fact, the establishment of new banks has been delayed for some time. We are moving ahead with the bank restructuring process. We have stopped the operation of 17 banks (by having licences revoked, allowing banks to be merged into others). Now there are 34 operational banks only, while the figure was 53.

As per WTO commitments, Vietnam will have to open the banking market to foreigners as of April 1. Has any foreign investor applied to set up a bank in Vietnam?

In fact, we have received 8 applications to set up 100% foreign owned banks in Vietnam. We have not licenced any new bank.


Do Minh

Does anybody have any idea or have heard when the dongs might RV

Originally Posted by buddy54

Does anybody have any idea or have heard when the dongs might RV

Gambling on Vietnamese real estate
As Asia's latest rising star continues its meteoric rise, its property market struggles to cope with a surge in demand

NOLAN CRAWFORD

Though overcrowding, quality control and government corruption are ongoing issues, the property market is still one of the hottest growth industries in Vietnam, a trend that some analysts do not expect to abate any time in the near future.


Motivated by 8% economic growth last year and the potential of easing real-estate regulations, it is not only developers that are cashing in, but also commercial banks and property funds.


The basic overall picture, according to research by CB Richard Ellis (Vietnam) released earlier this month, is rapidly growing demand in all areas _ office space, residential, serviced apartment and hotels _ and not enough supply. It is a picture they foresee for at least the next three to five years.


''To describe how young and new the market is, just take a look at office space. In Ho Chi Minh City we're talking about 350,000 square metres, whereas in Bangkok we're talking about 3.5 million square metres and in Jakarta four million,'' said Peter Dinning, the managing director of VinaCapital Real Estate Ltd, in a recent interview.


''As a result, we see almost 100% occupancy in a lot of areas.''


Demand in the office segment of the market is being driven by entrepreneurs opening shop, foreign direct investors wanting to set up shop, and local firms deciding whether to trade up for something with modern amenities.


''The office market has been predominantly foreign,'' said Mr Dinning, ''but we've seen a shift in the last two years with local companies wanting to show they can compete in the global market by upgrading, especially now the country is a World Trade Organisation member.''


Short supply and strong demand has certainly driven prices higher. CB Richard Ellis quotes Ho Chi Minh City Grade-A office rental space at US$23 a square metre in the first quarter of 2006 and now estimates it at around $29.50.


The hotel segment is seeing similar growth, helped along by an influx of travellers. The Vietnam National Administration of Tourism estimates that international arrivals grew by 3% last year to 3.58 million people.


The government hopes the figure climbs to more than 5.5 million by 2010 as the country taps into the allure of its mountainous regions and 3,000-plus kilometres of shoreline.


As for the residential segment, an emerging middle class that has benefited from decreasing unemployment and consistent economic growth over the past five years is beginning to invest in property.


''Local demand is huge, though the actual number of people who can afford new homes is still very limited,'' said Nguyen Quoc Tuan, an associate director of research with CB Richard Ellis.This situation is likely to change, said Tuan. The hope is that Vietnam will continue its current trajectory as Asia's third fastest-growing economy through 2010.


In addition, consumers are becoming savvier about various financial products, such as home loans. Commercial banks over the last few years have begun pushing mortgages and are still in the early stages of offering long-term, fixed-rate loans to consumer who have the right credit rating.


''You can get a 12-year long term loan, but rates are still very high [for local consumers],'' said Tuan. ''That too should change as the market matures.''


Mr Dinning added that the residential sector has potential for long-term sustainable growth because of the huge local demand, but of course there will be the usual peaks and troughs in the short run.


In the meantime, the securities market may be an alternative avenue in which to fund housing purchases. Viet Nam News and other publications have run stories in the last two months regarding small investors who have ridden the stock market wave over the past year and are cashing out.


They are taking their newfound wealth and buying real estate, a more traditional investment channel in Vietnam similar to gold and foreign currency.


Despite all the upbeat banter, analysts have issued a number of warnings targeted at consumers, property-fund managers and developers alike.


In its 2006 Real Estate Transparency Index report released earlier this month, Jones Lang LaSalle put Vietnam at 56th, right at the bottom of the list, below regional competitors such as China, in 42nd place, and Thailand, ranked 39th.


The report also indicated a strong correlation between a market's lack of transparency and the level of corruption. Again, Vietnam was at the bottom of the index.


Earlier this month, Nguyen Dinh Than, a director at state-owned Vinaconex, was found with 200 million dong (405,950 baht) in alleged kickbacks from a local contractor. The case is now before the courts.


The government also maintains tight controls on the market. Currently, foreigners are not allowed to own real estate, though there are the usual loopholes if a person is married to a Vietnamese. Secondly, overseas-based development companies must enter a joint venture with a local partner in order to invest.


Under the World Trade Organisation agreement Vietnam signed at the end of last year, lawmakers plan to liberalise the property market from now until January 2009. Foreign developers will supposedly have greater access to the market once new policies take affect.


Another negative factor is potential overcrowding in the market.


''There is a lot of money chasing too few good deals,'' said Rick Mayo-Smith, the managing director of Indochina Capital.


''If you plan on coming in on your own, it maybe difficult The property market [in Vietnam] is not necessarily the godsend that people say it is.''


The key, he says, is a thorough understanding of the local environment and the ability to find good deals, which is not always easy given the transparency issues. He also warned that with about one billion US dollars already invested in the market, competition is tough.


Indochina Capital is expected to make 25-30% returns on its first property fund, but the second fund will be much more difficult ''with the market that is much more crowded and expensive'', said Mr Mayo-Smith.

Bangkok Post : Business news

When I started it was 16,500 plus to the USD Now

Vietnam $1 =15,895 Vietnam Dong

Vietnam's FDI inflow exceeds US$2.5 billion
07:46' 25/03/2007 (GMT+7)
VietNamNet Bridge - Vietnam has in the first quarter of this year attracted more than US $2.5 billion in foreign direct investment (FDI), a year-on-year increase of 22%, reported the Ministry of Planning and Investment.

According to the Foreign Investment Department, in March alone, the country licensed 71 FDI projects with a combined registered capital of US $455 million and permitted 47 operational projects which added US $432 million to their investment capital.

Up to 49% of the total capital of the first three months was poured into the service industry, 48% into industrial projects, and the remainder into the agro-forestry-fisheries sector.

The Republic of Korea emerged as the biggest investor in Vietnam in the reviewed period with a total registered capital of US $486 million, followed by Singapore with US $476 million.

According to the department, the largest projects involve the construction of a US $276 million resort in central Thua Thien-Hue province, a US $220 million paper mill in southern Binh Duong province, a US $165 million seaport in southern Ba Ria-Vung Tau province and a US $100 million reservoir in northern Thai Nguyen province.

(Source: VNA)

VietNamNet - Vietnam's FDI inflow exceeds US$2.5 billion

thanx neno

Originally Posted by neno

Gambling on Vietnamese real estate
As Asia's latest rising star continues its meteoric rise, its property market struggles to cope with a surge in demand

NOLAN CRAWFORD

Though overcrowding, quality control and government corruption are ongoing issues, the property market is still one of the hottest growth industries in Vietnam, a trend that some analysts do not expect to abate any time in the near future.


Motivated by 8% economic growth last year and the potential of easing real-estate regulations, it is not only developers that are cashing in, but also commercial banks and property funds.


The basic overall picture, according to research by CB Richard Ellis (Vietnam) released earlier this month, is rapidly growing demand in all areas _ office space, residential, serviced apartment and hotels _ and not enough supply. It is a picture they foresee for at least the next three to five years.


''To describe how young and new the market is, just take a look at office space. In Ho Chi Minh City we're talking about 350,000 square metres, whereas in Bangkok we're talking about 3.5 million square metres and in Jakarta four million,'' said Peter Dinning, the managing director of VinaCapital Real Estate Ltd, in a recent interview.


''As a result, we see almost 100% occupancy in a lot of areas.''


Demand in the office segment of the market is being driven by entrepreneurs opening shop, foreign direct investors wanting to set up shop, and local firms deciding whether to trade up for something with modern amenities.


''The office market has been predominantly foreign,'' said Mr Dinning, ''but we've seen a shift in the last two years with local companies wanting to show they can compete in the global market by upgrading, especially now the country is a World Trade Organisation member.''


Short supply and strong demand has certainly driven prices higher. CB Richard Ellis quotes Ho Chi Minh City Grade-A office rental space at US$23 a square metre in the first quarter of 2006 and now estimates it at around $29.50.


The hotel segment is seeing similar growth, helped along by an influx of travellers. The Vietnam National Administration of Tourism estimates that international arrivals grew by 3% last year to 3.58 million people.


The government hopes the figure climbs to more than 5.5 million by 2010 as the country taps into the allure of its mountainous regions and 3,000-plus kilometres of shoreline.


As for the residential segment, an emerging middle class that has benefited from decreasing unemployment and consistent economic growth over the past five years is beginning to invest in property.


''Local demand is huge, though the actual number of people who can afford new homes is still very limited,'' said Nguyen Quoc Tuan, an associate director of research with CB Richard Ellis.This situation is likely to change, said Tuan. The hope is that Vietnam will continue its current trajectory as Asia's third fastest-growing economy through 2010.


In addition, consumers are becoming savvier about various financial products, such as home loans. Commercial banks over the last few years have begun pushing mortgages and are still in the early stages of offering long-term, fixed-rate loans to consumer who have the right credit rating.


''You can get a 12-year long term loan, but rates are still very high [for local consumers],'' said Tuan. ''That too should change as the market matures.''


Mr Dinning added that the residential sector has potential for long-term sustainable growth because of the huge local demand, but of course there will be the usual peaks and troughs in the short run.


In the meantime, the securities market may be an alternative avenue in which to fund housing purchases. Viet Nam News and other publications have run stories in the last two months regarding small investors who have ridden the stock market wave over the past year and are cashing out.


They are taking their newfound wealth and buying real estate, a more traditional investment channel in Vietnam similar to gold and foreign currency.


Despite all the upbeat banter, analysts have issued a number of warnings targeted at consumers, property-fund managers and developers alike.


In its 2006 Real Estate Transparency Index report released earlier this month, Jones Lang LaSalle put Vietnam at 56th, right at the bottom of the list, below regional competitors such as China, in 42nd place, and Thailand, ranked 39th.


The report also indicated a strong correlation between a market's lack of transparency and the level of corruption. Again, Vietnam was at the bottom of the index.


Earlier this month, Nguyen Dinh Than, a director at state-owned Vinaconex, was found with 200 million dong (405,950 baht) in alleged kickbacks from a local contractor. The case is now before the courts.


The government also maintains tight controls on the market. Currently, foreigners are not allowed to own real estate, though there are the usual loopholes if a person is married to a Vietnamese. Secondly, overseas-based development companies must enter a joint venture with a local partner in order to invest.


Under the World Trade Organisation agreement Vietnam signed at the end of last year, lawmakers plan to liberalise the property market from now until January 2009. Foreign developers will supposedly have greater access to the market once new policies take affect.


Another negative factor is potential overcrowding in the market.


''There is a lot of money chasing too few good deals,'' said Rick Mayo-Smith, the managing director of Indochina Capital.


''If you plan on coming in on your own, it maybe difficult The property market [in Vietnam] is not necessarily the godsend that people say it is.''


The key, he says, is a thorough understanding of the local environment and the ability to find good deals, which is not always easy given the transparency issues. He also warned that with about one billion US dollars already invested in the market, competition is tough.


Indochina Capital is expected to make 25-30% returns on its first property fund, but the second fund will be much more difficult ''with the market that is much more crowded and expensive'', said Mr Mayo-Smith.

Bangkok Post : Business news

NENO: All we need is for the dinar to rv so we can buy s**t loads of dong!

I hope "Dinar Trade" has a lot of Dong in stock because when the Dinar RV everybody will buy like crazy.

I myself plan to buy 500 millions and maybe more.

Dinar Trade get ready because I believe the Dinar will RV next week ....

Thanks

Originally Posted by chouchou

I hope "Dinar Trade" has a lot of Dong in stock because when the Dinar RV everybody will buy like crazy.

I myself plan to buy 500 millions and maybe more.

Dinar Trade get ready because I believe the Dinar will RV next week ....

Thanks

Yea, me too.

Originally Posted by chouchou

I hope "Dinar Trade" has a lot of Dong in stock because when the Dinar RV everybody will buy like crazy.

I myself plan to buy 500 millions and maybe more.

Dinar Trade get ready because I believe the Dinar will RV next week ....

Thanks

Now that sounds like a Plan. Ali, look out Bro'.

BTW, YogiBrood is setting up shop in Thialand for a Retirment Retreat. I am kinda hoping he can come thru with a much better deal for Rolclub Members.

I know that if we were in Vietnam a Million Dong is like $63.00 And Ali is just the Only way right now. And that is fine cause he usally charges $130.00 Per Million Dong but then sells it to Rolclub Members I think for $105.00 Which is better the anyone has found sofar and Trust.

So here is to Ali unless, YogiBrood every gets set up.