Thread: Latest news on the Dong!

Vietnam poised for jump in outbound investment

Mr. Phan Huu Thang
Vietnamese enterprises plan to invest US$500 million abroad next year, the Planning and Investment Ministry said.

But the figure could end up much higher since state giant PetroVietnam and its affiliates had signed agreements for some large oil and gas projects in Asia and Latin America, it said.

The ministry’s Foreign Investment Agency (FIA) said Vietnamese investment abroad had grown remarkably in recent years, with $968 million now invested in 30 countries and territories in sectors like petroleum, hydropower, and plastics.

This year alone investments worth $347.3 million had been approved by the ministry.

Most projects were doing well.

Phan Huu Thang, FIA head, said the government’s drawn-out investigation into investments abroad and unsympathetic laws were the major obstacles to enterprises’ plans.

However, these issues were set to be addressed soon under a recent government direction enabling local entrepreneurs to do business abroad, he said.

But some $424 million has been invested in Laos alone, indicating that most overseas investment is still concentrated within the region.

Analysts said enterprises should not concentrate just on neighboring markets but should try to expand into developed nations.

Investing abroad helped Vietnamese enterprises build their trademarks internationally and gain experience, they said.

Source: Thoi bao Kinh te Vietnam – Translated by Ha Dong

US group gets nod for $1.2 bln resort in Vietnam island


The US-based Rockingham Corporation has reached agreement in principle with Vietnam’s southern Kien Giang province to lease land for a US$1.2 billion tourism complex on Phu Quoc Island.

The province has agreed to make available 923 ha on the island but further details of the agreement are awaited. It will allot the land by next year.

While awaiting central government clearance, the provincial authorities have told the Los Angeles-based company to go ahead with its planning for the complex.

The US investor’s proposal dovetails with a government master plan to turn the island into an international aqua-eco-tourism destination as well as a trade and cultural hub.

Rockingham proposes to build a 36-hole golf course, a high-end resort with more than 2,000 rooms, villas for rent, a motor racetrack, a tourism school, and other tourism facilities.

Construction is set to be completed by 2015.

The US group has established the Rockingham Vietnam Real Estate Development Company to carry out the project.

It had asked the local government for 1,400 ha for the project but there with the huge demand on the island from other investors, there wasn’t enough land to go around.

The authorities even relocated 28 smaller investors to find the 923 ha they eventually allotted the US investor.

The province had approved detailed zoning plans on 275 ha, with many smaller investors seeking to develop resorts, golf courses, and a fishing wharf.

Nearly 150 foreign and domestic investors have registered for business licenses in Phu Quoc.

Compiled by Ha Dong

US president signs US-Vietnam trade measure


US President George W. Bush signed Friday a proclamation formally extending full US-Vietnam trade ties and made the Southeast Asian country eligible for US military aid, key steps in normalizing relations.

The measure lifted trade restrictions imposed on Vietnam under the so-called "Jackson-Vanik" amendment of 1974, under which nations can enjoy normal trade relations with the US only if the president grants an annual waiver certifying that such relations promote freedom of emigration.

“The extension of nondiscriminatory treatment to the products of Vietnam shall be effective as of the date of signature,” the proclamation says.

"The United States welcomes Vietnam's progress in enacting free-market reforms, and looks forward to Vietnam becoming the 150th member of the World Trade Organization on January 11," the Agence France Presse quoted White House spokesman Scott Stanzel as saying.

In a memorandum to US Secretary of State Condoleezza Rice, Bush declared that "the furnishing of defense articles and defense services to Vietnam will strengthen the security of the United States and promote world peace."

Bush had visited Hanoi and Ho Chi Minh City, in mid-November as part of a week-long Asia trip that also took him to Singapore and Indonesia.

The US Congress formally granted Vietnam "permanent normal trade relations" earlier this month, giving that country the same access to US markets that other WTO members enjoy.

The two countries normalized political relations in 1995 under former US president Bill Clinton and signed a bilateral trade agreement in 2001.

Vietnamese-US trade grew to nearly US$8 billion in 2005, a five-fold increase since 2001. US investments in Vietnam are expected at about $4 billion this year.

The two countries hope bilateral trade will nearly double to $15 billion by 2010 and US investments in Vietnam to $8 billion this year.

Source: White House, AFP, DPA

Just wondering if anyone has heard new info regarding Vietnam joining the WTO??

Sorry if this has already been posted.



Foreign exchange rate margin relaxed

(04-01-2007)

HCM CITY — The State Bank of Viet Nam (SBV) has adjusted the VND/USD exchange rate margin as part of its drive to create a flexible exchange rate regime in the domestic financial market, according to banking official Truong Van Phuoc.

Phuoc, director of the SBV Department of Foreign Exchange Management, said the central bank extended the VND/USD exchange rate margin from the current 0.25 per cent to 0.5 per cent, effective January 2.

The move was one of several measures that the bank has applied since 2004 to better fit the economy’s rapid growth, he said.

"Over the past years, the central bank gave permission to domestic banks to freely organise exchange of foreign currencies," Phuoc said.

Thus, corporations and businesses would have a more flexible market for transactions.

Under this new policy, export companies would be able to shift from the US dollar to other strong foreign currencies like the euro if they found them profitable.

Phuoc said they would not have to depend on the US dollar as much as they have done in the past.

Many market experts predicted that the new exchange rate margin would result in a rise in the US dollar against the Vietnamese dong, but that did not occur.

Before the new policy was announced, local banks quoted the greenback at VND16,060 per dollar, 0.25 per cent lower than the inter-bank rate declared by State Bank of Viet Nam (SBV).

At 10 am after the issue of the new policy, the US dollar sold at VND16,040, 20 dong lower over the morning rate.

The market, experts said, had more US dollar sellers than buyers, and no major changes occurred after the announcement. Bank activity remained the same and few people purchased dollar for special purposes, they said.

Securities companies and foreign investors were the most concerned about the market’s new changes, they said. Some had wanted to sell millions of dollars for Vietnamese dong to invest in the securities market but they did not do so after the policy was announced, experts said. — VNS

Viet Nam News

Business Beat

(08-01-2007)

Property hunting in the city? Get in line

by Le Hung Vong

With foreign investment flowing into it, the real estate market seems poised for a revival this year.

Dang Hung Vo, Deputy Minister of Natural Resources and Environment, said with WTO membership and the US Congress’ PNTR vote, foreign direct investment was likely to spurt.

He added investors were likely to switch from the stock to the property market by the second quarter.

Media reports last week said demand for hotel rooms, serviced apartments, and retail and office space outstripped supply because of the economic boom, strong investment and tourism performances, and high consumption.

We have seen the demand continue to rise in 2006 and we expect this to continue into 2007. Demand is especially strong from new companies entering Viet Nam for the first time with many new Asian expatriates coming to Viet Nam," general director of Chesterton Petty Viet Nam, Martin Roumens, said.

According to Chesterton Petty, an army of investors and developers have been studying Viet Nam’s real estate market, with particular emphasis on Ha Noi, HCM City and secondary cities like Hai Phong and Da Nang. Many significant projects, worth $100 million or more, are expected in the next two years.

However, rental growth is likely to last only for another two or three years. Neil Thurston, associate director of Dragon Capital, said rents could steadily decline between 2008 and 2010 when a significant number of buildings were completed.

The construction of dozens of large office buildings, each able to supply floor space equivalent to the total existing Grade A office space now, is the reason for the expected decline.

The 100,000sq.m Bitexco Financial Tower and 77,000sq.m Vietcombank Tower are among them.

In addition, small local developers are also building office space to satisfy smaller tenants.

Oil reserves increase

Viet Nam’s oil reserves have increased to 36 million tonnes of oil equivalent as a result of some diligent exploration efforts by oil companies.

According to the Vietnam News Agency, of the 28 wells drilled recently, eight had been found to have oil and gas.

These important discoveries are a basis for making a long-term plan for exploiting and processing oil and gas.

Budget airline war heats up

Passengers on domestic routes are set to enjoy the lowest airfares ever seen in Viet Nam after the joint stock Pacific Airlines turns into a budget carrier on February 1.

The carrier’s managing director, Luong Hoai Nam, said it would offer three kinds of tickets – Sky Super Saver (super discounts), Sky Saver (big discounts), and Sky Flex (flexible prices). There would be different prices for the same flight.

Low-cost airlines in the region, like AirAsia, Jetstar, and Tiger Airways, have been successful and all of them now fly to Viet Nam.

Lawyers sent abroad

The Ministry of Justice is mulling over a programme to send 30 young lawyers abroad for training.

Minister of Justice Uong Chu Luu said Viet Nam needed expert lawyers who could meet the tough demands of the WTO regime. As a WTO member Viet Nam would surely have to face lawsuits, which, in the past, it had lost mainly because its lawyers had been found wanting.

"I must say that the lawyers practising now do not have enough experience in dealing with international disputes, and they lack knowledge especially of international law and trade. Though we can pinpoint the problems, we cannot solve them overnight." — VNS

Viet Nam News

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.

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.

I have the same questions...! HELP PLEASE!

Hi,

By the way you can only buy Dong from Dinartrade with a credit card if you live in the U.S. us poor Brits cant.

Originally Posted by abbey56

Hi,

By the way you can only buy Dong from Dinartrade with a credit card if you live in the U.S. us poor Brits cant.

Ali has COD with the Dong just like the Dinar. I have ordered it a couple times already. And had the Cashers Check waiting for the Fed-Ex Guy. Now IC you are in Eruope. Ali Has said he send COD to Europe and Asia Countries as well. Call the 1-800 number and speak with him.