Thread: Latest news on the Dong!

Originally Posted by Spoiledred

Ok that is part of the quote:

On Monday, the head of the central bank's foreign exchange department, Phi Dang Minh, was quoted by state media as saying the additional funds would be used to purchase U.S. dollars on the market to weaken the dong.


The central bank has said it no longer has a fixed target for the value of the dong for the end of 2007, but it would ensure the dong's value is on par with other currencies.


On Monday, the central bank set the dollar exchange rate at VND16,110, nine dong weaker than VND16,101 at the end of 2006.

Ok this is what I see in this statement. in 6 months the dong weakend 9 dong. Thats not a big change and that is not in the right directioin either. Why do they want to weaken the Dong? Wouldn't they want to strengthen it? Another question what is ment by it is on par with other currencies. That is talking in the

present tense not the future. If they are saying right now the dong is on par that is not what I want to hear, I want like anyone else the dong to get strong and RV. I would love to see things change!

Thanks Spoildred. I'm starting to think that these announcements fall into the smoke and mirrors BS these countries dish out to throw off speculators etc. We've seen China do just this and 2 days later it revalued. Furthermore, there will be a lot of conflicting reports coming out (like we are seeing) as a last minute dash to shake out prospective and current speculators in both the NID and Dong. That said, I'm not discounting the possibility of both these currencies going at the same time. Who knows aye but even if they both happen end of year/early 2008, I have no probs waiting. The question is can the Iraqi people wait?

Like the Bells in the tower, they just ring out that tone and we know they are there. Personally, I would hope the Dinar will do its thang first so I can buy about $20,000 in Dong for future endeavors.

Not that I am greedy, but it costs money to build dreams. However, if the Dong went up 3 to 1, I would probably sink some back into the Dinar and just set my goals a little lower.

Anyone know about opening an account in Vietnam and purchasing through them? I would imagine a better deal and a Vietnamese Debt card should work just as well as one from elsewhere.

Oops, being pages by the Chat Room, so I am off and holding my Dong.

Originally Posted by Heres-Hoping

Thanks Spoildred. I'm starting to think that these announcements fall into the smoke and mirrors BS these countries dish out to throw off speculators etc. We've seen China do just this and 2 days later it revalued. Furthermore, there will be a lot of conflicting reports coming out (like we are seeing) as a last minute dash to shake out prospective and current speculators in both the NID and Dong. That said, I'm not discounting the possibility of both these currencies going at the same time. Who knows aye but even if they both happen end of year/early 2008, I have no probs waiting. The question is can the Iraqi people wait?
[/left]

I dont think they Iraqi's can much longer. so an rv NEEDS to happen!

i agree it is just a short matter of time and we will have our r/v.
LIT

Vietnam-US to sign contracts worth US$4.5 billion

15:59' 18/06/2007 (GMT+7)

VietNamNet Bridge – Around 120 companies operating in various fields will escort President Nguyen Minh Triet to the US from June 18-23 and many big contracts worth up to $4.5 billion will be signed between Vietnamese and American companies.

The most notable contract is one between Vietnam Airlines and Boeing Group. Other events of interest include cooperation signing ceremonies between the Hanoi Securities Trading Centre and the Nasdaq Stock Market Inc and the HCM City Securities Trading Centre and the New York Stock Exchange.

During this visit, President Triet will meet with the chairman of the General Electrics group, which is seeking an opportunity to open a plant in Vietnam.

Dang Thanh Tam, Chairman of the Board of Directors of the Saigon Telecom JS Company (Saigon Tel), who is a member of the Vietnamese delegation that will travel to the US, said that the visit was to seek business cooperation opportunities with US partners. The general goal is promoting exports, drawing US investment, particularly into hi-tech and finance and banking sectors.

Mr Tam said that during recent meetings with US partners, American investors expressed interest in Vietnam’s financial market, especially the stock market.

Three workshops on investment attraction and trade promotion are scheduled to be held in New York, San Francisco and California during this time. Vietnam and the US will also sign the Framework Agreement on Trade and Investment.

In an interview with Labour newspaper, Nguyen Thi Bich Van, Vice Head of the Foreign Investment Agency under the Ministry of Planning and Investment, said that many US investors considered Vietnam as a potential market while Vietnam wanted to attract US investment in finance and hi-tech areas and the two sides would both benefit.

According to statistics, US investors have invested in 325 projects with the total registered capital of $2.3bil, accounting for 4.4% of total projects and 3.5% of total foreign direct investment in Vietnam. The US ranks 6th among the 77 countries and territories that have investment projects in Vietnam.

US investors are also interested in portfolio investment through investment funds, the stock market, etc. Infrastructure development projects are now attractive to US investors since the Vietnamese government has been encouraging the private sector to develop infrastructure facilities in Vietnam, Ms Van said.

Among the US-invested projects that are under negotiation, according to Ms Van, are the Mong Duong Thermo-power Plant 2 in Quang Ninh province (a joint venture between the AES group and the Vietnam Coal and Mineral Group in the form of build-operate-transfer totalling $1.46 billion of investment), the Nhon Trach 2 Thermo-power project of the Gannon group and the $1.5 billion Dak Nong bauxite ore and aluminum project.

“US companies are seeking investment opportunities in Vietnam and it is forecast that US investment into Vietnam will rapidly increase after the US visit by President Nguyen Minh Triet,” she said.

(Source: VNE, Lao dong)

June 11-15: stock market recovered slightly in latest transactions

13:36' 18/06/2007 (GMT+7)

VietNamNet Bridge – Though there were more trading sessions that saw the VN Index increases than the sessions that saw the VN Index decreases, the market still fell down slightly in the last week. This was the third consecutive week that saw the VN Index down.

The stock market last week bore the influence by the State Bank of Vietnam’s (SBV) decisions on limiting the loans funding securities investment deals, and raising the compulsory reserve ratio. Experts have predicted that with the new decisions, a big amount of money will be withdrawn from the market.

Responding to the SBV’s moves, the prices of shares on the stock market decreased slightly last week. The VN Index fell slightly to below the 1,050 point threshold. 60 share items saw the prices decrease, 39 items saw the prices increase, while other 8 items were stabilized in prices.

On June 11 transactions, VGP was the share item which saw the biggest decreases (- 4.96%), VFMVF1 fund certificate was down by 2.4% in prices to VND32,600/certificate, while PRUBF1 down by VND200 (1.5%) to VND13,100.

The trading sessions on June 12 witnessed the VN Index falling down to the deepest low in the last one month, 1,036.54 points.

The VN Index bounced back on June 13 after three consecutive sessions of falling down, while the downturn was still seen at the Hanoi Securities Trading Centre (HASTC).

What surprised investors most was that the share prices of BMC and TCT, which had been increasing sharply since the beginning of the year, fell down dramatically last week. BMC prices decreased by VND27,000/share to VND520,000, while TCT decreased by VND20,000 to VND386,000

Analysts said that the news that the management authorities would examine the unusual price increases of BMC and TCT have forced the prices down.

The VN Index rose slightly on June 14 after two trading sessions of staying at below 1,040 points and kept rising on June 15, closing at 1,048.19 points.

Analysts said that the VN Index slightly recovered because share prices have reduced by 11% already. Besides, investors remain optimistic about the stock market after hearing the news that Japanese investors open more accounts to make securities transactions in Vietnam. Experts have predicted that many foreign investment funds would enter Vietnam after Vietnamese President Nguyen Minh Triet’s visit to the US in order to strengthen the economic ties between the US and Vietnam.

The total trading value was VND3,042bil ($190,12mil) last week, or VND608bil ($38mil) a day. Some 29.4mil securities were traded in the last five trading sessions, or 5.88mil units a session.

Regulation on foreign securities investors control to be enacted

The State Securities Commission (SSC) is drafting the regulation on foreign investors control which is expected to be promulgated in June. SSC is also considering terminating the authorized investment in Vietnam’s stock market via individuals in Vietnam.

The news was given by Nguyen Thi Lien Hoa, Deputy Chairwoman of SSC at the workshop on portfolio investment encouragement and management held in Hanoi on June 15.

Mrs Hoa said under the new regulation, competent agencies will grant trading codes to foreign investors, and ask to give reports on foreign investors’ transactions. Foreign investors have to provide necessary information to the management authority when they come to make investments in Vietnam.

From the fourth quarter of 2006 to the first quarter of 2007, the portfolio investment into the stock market has been increasing sharply, which has made difficulties for the management authority.

The appearance of many foreign investors, who have big capital and professional investment method, has helped the stock market become more bustling. However, the state management authority has discovered more and more violations committed by foreign investors, which mainly relate to the information exposure. Many investors were found as making reports slowly and providing inadequate information, making the management work more difficult.

Phuoc Ha

US not far from becoming No 1 investor in Vietnam

13:34' 18/06/2007 (GMT+7)

VietNamNet Bridge – American are nearly secure in the No 1 position among biggest investors in Vietnam with the moves made recently by the US and Vietnamese business circles.

Intel announces its $1bil projectWhile the Vietnam – US two-way trade has been growing at a dizzy speed after the Bilateral Trade Agreement (BTA), the US investment in Vietnam has still been below expectations. However, the situation has been improved.

The stamp of US investment

According to a report released recently by the Foreign Investment Agency (FIA), by mid May 2007, Americans had made investment in 325 projects with the total registered capital of $2.3bil, amounting to 4.4% of the total projects and 3.5% of total foreign direct investment (FDI) in Vietnam. The US ranks 8th among the 77 countries and territories that have investment projects in Vietnam.

Phan Huu Thang, Head of FIA, repeatedly said that the said figures did not reflect the actual US investment in Vietnam. Many big US groups, including Coca Cola, Procter & Gamble, Unocal and Conoco, have invested in Vietnam, but through other countries like the British Virgin Islands, Singapore or Hong Kong. That explains why the investment deals were not listed as US investment.

Statistics showed that 74 US invested projects in Vietnam have been carried out through third countries, totaling $2.4bil. As such, if counting on the investment through third countries, American have invested in 396 projects capitalized at $4.7bil, ranking the sixth out of 77 nations and territories that have FDI in Vietnam.

In 2006, through Hong Kong, the US-based Intel group registered the investment project on Intel Products Ltd, the maker if Intel chips, which had the total capital of $1bil. The project is expected to help lure more US investors to Vietnam in the time to come.

Therefore, it is understandable why in the recent reports on BTA implementation, experts from the project on BTA implementation support repeated the possibility to see the US as the biggest investor in Vietnam.

Many big companies and groups have been presented in Vietnam, namely Starwood Hotels & Resorts, Citigroup and American Group, New York & Company, Alfonso DeMatteis, Dickerson Knight Group and AIA. All of them have cemented their positions in the destination countries, and this is the convincing proof to show the attractiveness of Vietnam as an investment destination.

Marching towards the No 1 position

A bridge which aims to help boost trade and investment has been set up, the Vietnam – US Advisory Council. With the help of the bridge, over the last year, investors have suggested at least 10 projects in important fields, including oil and gas, power, aviation and information technology. Ten official members of the council, together with other US businesses, have committed to invest $4-5bil in Vietnam in two or three years.

Most recently, a delegation of 18 big US businesses came to Vietnam and had a meeting with Vietnamese Prime Minister Nguyen Tan Dung. The trip which has been assessed as very effective, and is hoped to bring more new investment projects to Vietnam.

US investors tend not to suggest big scaled investment projects. At the APEC summit week last year, US investors reached the agreement on the Mong Duong thermopower plant project and the Cai Lan port expanding project. Two US insurers, ACE and Liberty Mutual obtained the operation licenses sooner than expected. This shows the readiness of the both sides for the new era in the Vietnam – US business relationship. Big names in the IT sector like Microsoft, Unisys, Qualcom and Motorola are also seeking the way to boost cooperation projects with Vietnam. Qualcom, for example, wants to provide the infrastructure facilities for the 3G mobile network to EVN Telecom and Hanoi Telecom, and get involved in the project on wireless Internet for Vietnamese education.

Experts have predicted that many agreements will be signed between US and Vietnamese businesses in the visit by Vietnamese President Nguyen Minh Triet to the US.

The US visit by the then Vietnamese Prime Minister Phan Van Khai two years ago could help bring salient results in business commitments, while the President Nguyen Minh Triet’s visit is hoped to open a new chapter in the economic relationship between the two countries.

Phuoc Ha

BUSINESS IN BRIEF 17/6

10:35' 17/06/2007 (GMT+7)

VN-Index increases 5.4 points as foreign investors open more accounts

The VN-Index on the Ho Chi Minh City trading floor rebounded for the second consecutive day, closing 5.4 points, or 0.52 percent, higher to finish at 1,048.19 by the end of trading, on June 15. Analysts said that stronger buying by foreign investors was fueling the recovery.
Vietnam’s oldest bourse saw close to 5.68 million shares traded at a recorded value of VND 601.48 billion. Hanoi’s HASTC-Index lost 2.40 points to close at 313.47.
A number of blue-chip stocks such as IT giant FPT were among the 39 shares that gained on the day. 45 shares depreciated and 25 saw no change.
Hanoi floor suffered a minor dip of 2.4 points to end up on 313.47 points. Trade volume was also lower than usual as 1.16 million shares were traded, valued at VND 109.67 billion.
The Asia Commercial Bank, ABC, and the Saigon Securities Inc. (SSI) enjoyed slight rises in trading volume.
Experts attributed the rally of the Ho Chi Minh City bourse to increasing interest from foreign investors in the market.
Foreign investors were net buyers investing VND 209 billion, or 36% of the total turnover, in stocks like PPC, VNM, VSH, KDC and FPT. A number of foreign investors recently opened new accounts with major securities companies such as Bao Viet and SSI.

MPI finds way for higher growth rate

Every resource would be mobilised an every effort will be made to improve the competitive edge and the performance of the economy in 2008, said Minister of Planning and Investment Nguyen Hong Phuc.
Minister Phuc made the remark at a national conference of the planning and investment sector in Thanh Hoa province on June 14 to map out a socio-economic development plan for 2008.
Under the development plan, the country targets a GDP growth of 8.6-9% over 2007; a total export revenue of US $55.2 billion or a 18% year-on-year increase; and about 1.65 million new jobs.
According to the Ministry of Planning and Investment, to achieve these targets, ministries, sectors, localities and economic groups have to take all necessary measures to speed up economic growth, while improving the effectiveness, sustainability and competitiveness of the economy in the international integration process.
On the implementation of the 2007 tasks, Minister Phuc said that in the first half of this year, the socio-economic development saw a rather high growth rate, but it was still below the set target. To attain this year’s target of 8.5%, the country has to strive for a 9% growth rate in the 2nd half of the year.

Vietnam and Spain step up fisheries co-operation

Vietnam and Spain have agreed to step up co-operation in fisheries following the signing of a memorandum of understanding in Ho Chi Minh City on June 13.
The MoU was inked by Deputy Fishery Minister Luong Le Phuong and Secretary General of Fisheries Juan Carlos Martin Fragueiro of the Ministry of Agriculture, Fisheries and Food of Spain.
The two sides will work towards promoting sustainable development of the fisheries, aquaculture and seafood trade of each country through co-operation in related techniques, technologies, and surveillance activities.
A joint committee for co-operation will be set up to monitor the execution of the MoU and broaden bilateral co-operation.

New IZ to take shape in Bac Ninh province

The Bac Ninh provincial People’s Committee and the Republic of Korea (RoK)’s IGS group will establish Nam Son-Hap Linh industrial zone (IZ) in Tien Du district, Bac Ninh province, 35 km north of Hanoi.
The complex will include a 800 ha IZ and a 200 ha urban area.
As agreed, the RoK group will invest in infrastructure to form a modern IZ-urban area complex which will comprise a trade-service area, ho****als, schools, and entertainment areas.
Meanwhile, in another IZ of the province, the Shihen Vietnam ltd company has broken ground for its US $5.5 million plant for electronic component part production and assemblage. The plant, based in Tien Son IZ, is expected to turn out 6 million products per year.

Hanoi tightens management of foreign offices

So far this year, 50 Hanoi-based foreign representative offices have closed down, while 120 other foreign representative offices have received licenses for operation.
The municipal Trade Service said it has conducted regular visits to foreign representative offices to make sure that they operate in line with granted their licences as well as to give timely assistance to them in resolving difficulties.
Most recently, a Chinese representative office was fined VND 30 million and a tourist agency from Thailand was punished for violating rules on their licences.
The Hanoi Trade Service on June 1 aired an online-licence granting and managing programme in relation to foreign representative offices.

Chu Lai EZ offers special incentives to investors

Investors will enjoy special preferential policies if they choose the Chu Lai Open Economic Zone (EZ) in central Quang Nam province for their investment.
At a seminar on June 13, the EZ’s Management Board said investors cam lease land for up to 70 years in the zone and they will be exempted from paying rent for the first ten years.
The EZ’s Management Board will be responsible for relocating people to clear the ground and providing electricity and water for investment projects.
In addition, investors will enjoy a business income tax rate of 10% in the first 15 years.
The EZ is calling for investment in projects to build the Chu Lai airport, the Ky Ha port system, infrastructure, and urban areas and housing for workers.
Quang Nam authorities pledged to create favourable conditions for investors through the simplification of administrative procedures.
Investors attending the seminar paid special attention to projects to build new urban and residential areas, tourism and service centres in the zone.
Chu Lai has so far attracted 58 projects with a total registered capital of US $531 million. Of them 21 projects are operational and 21 others are under construction.

RoK textile makers turning to Vietnam

Vietnam has become an attractive investment destination for textile businesses from the Republic of Korea (RoK) after the country joined the World Trade Organisation (WTO), the Korea Trade-Investment Promotion Agency (KOTRA) said in a recent report.
KOTRA called more RoK businesses to move their “plants to Southeast Asian countries such as Vietnam.”
The report focused on the change in the business environment for the textile industry in Vietnam following the country’s entry into the WTO, and how Korean businesses can capitalise on it.
In 2006, RoK textile companies boosted investment in Vietnam by 53.7% over the previous year. This makes Vietnam the second-largest investment destination for the RoK textile industry, after China.
Among the top 20 textile exporters in Vietnam six are from the RoK, the KOTRA report said.
KOTRA attributed the surge in investment in Vietnam’s textile industry to low-cost labour, Vietnam’s skilled workforce, various incentives for foreign investment and the Vietnamese government’s strong will to attract foreign investors.

Vinashin brings lawyers’ association on as consultants
The Vietnam Shipbuilding Industry Group (Vinashin) and the Vietnam Lawyers’ Association inked a strategic cooperation accord on June 16.

Under the accord, the Lawyers’ Association will assist the group in providing legal consultancy to its subsidiaries in order to help them become more familiar with international rules and norms.

Attending the signing ceremony, Deputy Prime Minister Truong Vinh Trong applauded the cooperation and suggested the Lawyers’ Association should extend its consultancy work to include other large economic groups inside the country.
Hearing aid factory opens in Binh Duong
The Swiss invested Phonak Operation Center Vietnam. Co. Ltd. spe******ing in designing and manufacturing hearing aids and other digital equipment opened on June 15 in the southern province of Binh Duong.

The 1.23 million USD facility is located at the Vietnam-Singapore Industrial Park and Phonak’s third center worldwide, besides two others in Swizerland and China, according to the group’s chief executive officer Valentin Chapero Rueda.

“The Vietnam-based facility will also be involved in manufacturing headphones, microphones, radio-transmitters and hitech wireless communication equipment for export to Western Europe and Northern America,” he added.

The CEO cited low labour costs as well as good infrastructure and skilled labourers as among the reasons behind Phonak’s decision to invest in the park.

Licensed in May last year, Phonak Operation Center Vietnam Co.Ltd. has become the 135th firm to become operational in the park.
Headquartered in Stafa, Swizerland, the Phonak group is a world leader in the design, development, production and distribution of technologically advanced wireless and hearing system.
Vietnam, Laos move to boost trade
A fair opened in Savannakhet province of Laos on June 16 to promote investment and trade with Vietnam.

The fair is part of activities to celebrate the 45th anniversary of Vietnam-Laos diplomatic ties and the 30th anniversary of signing an agreement on friendship and cooperation.

It also marks the start of the Vietnam-Laos Investment Promotion Conference, which will take place at the Lao Bao Special Trade Economic Zone in Quang Tri province of Vietnam.

The trade fair, which will accommodate 195 booths, including 20 pavilions for Vietnamese companies, will display mainly garments and textiles, electronics, fi ne art articles and home electric appliances.

It is also aimed at promoting investment in the Densavan Trade Economic Zone of Laos and the Lao Bao Special Trade Economic Zone.

The five-day event is co-hosted by Savannakhet province and central Quang Tri province.
Vietnam-Hungary business association set up
The Vietnam-Hungary business association made debut in Ha Noi on June 15, becoming the country’s first foreign-related business association.

Vice Chairman of VPBank Management Board Nguyen Quang A was elected the association’s President.

The association will facilitate Vietnamese businessmen to conduct market study in Hungary and help expand operation of Vietnamese and Hungarian businesses in the EU as well as other markets.

It will also call on the Vietnamese businesses community in Hungary to invest in Vietnam.

(Source: VNA)

Originally Posted by lonelyintexas

i agree it is just a short matter of time and we will have our r/v.
LIT

One thing is obvious now...the Dong is light years ahead of the Dinar when it comes to RV. After the 1st of July, I will be giving all of my attention to Vietnam and will put Iraq on the back burner.

Originally Posted by danny51

One thing is obvious now...the Dong is light years ahead of the Dinar when it comes to RV. After the 1st of July, I will be giving all of my attention to Vietnam and will put Iraq on the back burner.

I haven't been following the dong as close as the NID. Why the July 1st deadline?? Thanks...