Archive for the ‘Asian Currency Markets’ Category

FDI surge, data point to Vietnam economic revival

Foreign direct investment in the first 11 months shot up by 54 percent from a year earlier, indicating, along with other signs, that the economy could be turning around.

Official data shows investment exceeding US$20.81 billion in the year-to-date, 77 percent of it going into manufacturing and processing.

The country had set a full-year target of $13-14 billion. (more…)

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VietNamNet Bridge – International investors and foreign direct investment (FDI) enterprises operating in the country may be allowed to open investment accounts in Vietnamese dong in addition to those in foreign currency.

The central bank has been passing around a draft circular governing the management of foreign exchange operations related to FDI enterprises in the country. (more…)

Last Updated: Monday, September 09, 2013 04:00:00

The banking sector has cleaned up VND85 trillion (US$4.02 billion) worth bad debts since the end of last year, bringing the ratio down to 4.68 percent as of June, the State Bank of Vietnam governor Nguyen Van Binh said.
But it was higher than the 4.46 percent targeted by the central bank earlier.

Binh said the bad debt figure had been more than 8 percent at the end of last year. (more…)

Updated June, 20 2013 10:39:12HA NOI (VNS)— The State Bank of Viet Nam has said that it would closely monitor exchange rate movements and balance of payment figures to manage the rate in a manner that would encourage dong holdings and limit shifting to US dollar holdings.

The central bank made the statement in response to the rising price of the US dollar in commercial banks that hit VND21,035 late last week. (more…)

April, 19 2013 09:37:25
State Bank warns of devaluation
HA NOI (VNS)— The Vietnamese dong could be devalued by as much as 2 per cent against the US dollar this year, said Governor of the State Bank of Viet Nam Nguyen Van Binh.

Binh made the comment earlier this week at a meeting with leaders of enterprises in the southern province of An Giang, where exporters asked the central bank to devalue the dong in a move to help boost export revenues. (more…)

June, 08 2013 09:20:27
Dollar sell rate peaks in Viet Nam

HA NOI (VNS)— The State Bank of Viet Nam has been selling the US dollar with a cap of VND21,036 for the past two days after maintaining the price at VND21,005 for over a fortnight.

The new rate is the same selling price as commercial banks. (more…)

HA NOI (VNS)— Any transaction over VND300 million (US$14,250) must be reported to the State Bank of Viet Nam under a recent decision that goes into effect June 10, 2013.

Signed by Prime Minister Nguyen Tan Dung last Thursday, the decision applies to financial institutions and relevant organisations and individuals conducting non-financial business lines prescribed in Article 4 of the Law on Anti-Money Laundering. The Viet Nam Law on Anti-Money Laundering came into effect on January 1 this year. (more…)

The International Monetary Fund (IMF) has made positive assessments on Vietnam ’s macroeconomic situation as well as the policy management of the State Bank of Vietnam (SBV) over the past time.

A press release, posted after IMF concluded the annual consultation mission to Vietnam in late April, said that Vietnam ’s macro-economy has shown signs of recovery mainly thanks to strong exports. (more…)

06/06/2013 | 21:42:00

Prime Minister Nguyen Tan Dung has affirmed Vietnam’s consistent policy of building a dynamic and competitive market economy at the 2013 World Economic Forum on East Asia in Myanmar’s capital city, Nay Pyi Taw, on June 6.

In opening the event which themed “Courageous Transformation for Inclusion and Integration”, PM Dung said Vietnam has always actively integrated into the regional and global economy both in depth and on wide scale. (more…)

Last Updated: Monday, April 29, 2013 05:00:00

The International Monetary Fund is not very hopeful that Vietnam can make further interest rate cuts this year.

“While headline inflation has come down, core inflation (excluding raw food and energy) remains high, limiting the room for rate cuts,” it said in a release at the conclusion of a mission to Hanoi and Ho Chi Minh City from April 8 to 25 for the 2013 Article IV Consultation discussion with Vietnamese authorities. (more…)

At the Spring Economic Forum 2013, organized in the central province of Khanh Hoa from April 5-6, several delegates were of the view that the economic restructuring program started in Vietnam some years ago has been moving at far too slow a pace.

Incomplete Van Phong International Port in the central province of Khanh Hoa is an example of wasted capital (Photo: SGGP) (more…)

Last Updated: Sunday, April 07, 2013 05:00:00

Vietnam’s government will need to accelerate economic structural reforms to boost growth that was at a 13-year low last year, National Assembly Vice Chairwoman Nguyen Thi Kim Ngan said.

“The economy will continue to face difficulties this year” amid an international slowdown and domestic challenges, Ngan said yesterday at a conference held by the National Assembly’s economic committee in the southern city of Nha Trang.
(more…)

VietNamNet Bridge – Under the draft of the new Ordinance on Foreign Exchange, individual residents can borrow money from foreign sources, pay debts and must be responsible for the borrowing in accordance with the regulations to be drawn up by the government.

If the draft ordinance is approved, Vietnamese individuals would be able to take initiative in borrowing foreign currencies from foreign sources for their personal spending or investments and paying debts. (more…)

HA NOI (VNS) — At least 90 per cent of local banks believe that inflation will stay in the single-digits this year, according to a survey conducted by the State Bank of Viet Nam (SBV).

Nearly 70 per cent of banks predicted that the mobilised and lending interest rates for the Vietnamese dong would go down by about 2 per cent, the SBV’s Monetary Statistics and Forecasting Department said. (more…)

Last Updated: Wednesday, February 13, 2013 02:00:00

After consumer prices rose 1.25 percent last month, analysts warned that the government is unlikely to keep inflation at below 6 percent this year.

Voice of Vietnam radio quoted economists as saying that a double-digit rise in prices is possible this year, posing more challenges to the government’s attempts to stabilize the economy. (more…)

Sat, February 2, 2013,9:28 AM (GMT+0700)

The Hong Kong and Shanghai Banking Corporation (HSBC) released its Vietnam Manufacturing PMI (Purchasing Managers’ Index) in January, 2013, which showed that Vietnam’s economy is recovering despite many difficulties in the coming time.

The index rose to 50.1 in January, up from 49.3 in December, 2012, meaning manufacturing production increased for the third successive month. Companies benefited from a slight increase in new orders from the domestic market. (more…)

30/10/2012 08:10:00 (GMT+7)

VietNamNet Bridge – It is estimated that 60 tons of gold has been sold, which is considered the result of a new policy on taking full advantage of the gold resource that the central bank attempts to pursue.

For a long time, people and analysts have been guessing wildly about the policies the State Bank of Vietnam would set up in order to mobilize the huge capital of 400 tons of gold from the public, after banks stop accepting gold deposits, slated for November 25. (more…)

Last Updated: Thursday, November 01, 2012 03:10:00

Frugality may allow Vietnam to raise the minimum wage for state employees by VND100,000 (US$4.8) per month beginning next July, the Finance Ministry said in a Wednesday report.

The report released at a session of the National Assembly said the ministry has gone over the state budget again, and having considered opinions from various legislators, decided that the budget can afford a small increase to the minimum wage. (more…)

A resolution on the country’s socio-economic development plan for 2013 that will see growth of 5.5 percent GDP and a 10 percent increase in export turnover was adopted by The National Assembly (NA) on November 8.

Additional targets include reducing trade deficit and maintaining CPI growth of 8 percent. State budget overspending will account for 4.8 percent of GDP, and total social development investment, 30 percent of GDP. (more…)

Though the central bank is yet to find a way to mobilize the massive volume of gold held by private individuals in the country to serve economic needs, it has banned banks from accepting gold deposits with effect from late November.

Nguyen The Hung, general director of the Vietnam Gold Investment and Trading Corporation, said that according to Swiss banks, the main source of gold imports for Vietnam, the country bought some 500 tons of gold between 1990 and 2011. (more…)

HA NOI – (VNS) Fake VND200,000 banknotes have been circulating in the market, the State Bank of Viet Nam said in a statement on Tuesday.

The fake banknotes, though meticulously printed, are less durable and elastic than the real polymer notes, so users can still distinguish them by the naked eye and by slightly tearing the notes’ edges.

In addition, the fake notes are also easily distinguished because they are not printed with optically variable ink (OVI). The ink, an anti-counterfeiting measure often used on banknotes, displays two distinct colours. (more…)

The Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group each year bring together central bankers, ministers of finance and development, private sector executives, and academics to discuss issues of global concern, including the world economic outlook, poverty eradication, economic development, and aid effectiveness. Also featured are seminars, regional briefings, press conferences, and many other events focused on the global economy, international development, and the world’s financial system. This year’s Annual Meetings events will take place in Tokyo, October 9-14, 2012.

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(VOV) – Prime Minister Nguyen Tan Dung has approved sending a Vietnamese delegation led by bank governor Nguyen Van Binh to the International Monetary Fund (IMF) and the World Bank (WB) Group annual meetings in Tokyo, Japan, from October 8-14. (more…)

Last Updated: Saturday, September 01, 2012 02:05:00

Vietnam’s bad debts rose to 8.6 percent of total loans at the end of March.  It will take a long time to reduce non-performing loans in Vietnam because the problem has taken root over several years, said the International Monetary Fund, once again urging banking reform. (more…)

Vietnamese Dong

Use of small change has fallen as prices increase

Vietnamese notes and coins below VND5,000 (US$0.24) in value could die out in the market since price hikes make it hard for people to keep and use them in trading, an economist says.
Goods now fetch high prices, so trading with small change has fallen, Vu Dinh Anh told VnExpress Tuesday.

The report quoted a woman called Ha as saying: “I find small change worth nothing in our daily life, so I don’t want to receive it.”

Chuong, a resident of the capital city, said, “I ask vendors to keep the change of VND500-1000 because I cannot buy anything with it.” (more…)

(VOV) – The falling inflation index in the first half of this year is attributed to unanticipated factors and the lack of middle and long-term strategies for stable economic growth.

Deflation could be negative

The Head of the Pricing Department under the General Statistics Office (GSO), Nguyen Duc Thang, says that over the past six months, the low purchasing power and large inventories, coupled with adjusted petrol prices and pay rises have had little impact on the consumer price index (CPI). (more…)

Updated : 12:25 PM, 06/08/2012

(VOV) – Despite slightly slow growth in the past six months, the national economy has yet to slip into recession, according to Vu Duc Dam, Minister and Chairman of the Government Office.

An economy plunges into recession only when its growth is negative in two consecutive quarters, but that is not the case in Vietnam, Dam told the media in Hanoi on August 5. (more…)

Updated : 9:24 AM, 03/08/2012

Vietnam has successfully ensured an economic balance, bringing down inflation and initiating much needed reforms, according to a report by the Hong Kong-Shanghai Banking Corporation (HSBC) on August 2.

Low inflation but slow growth (more…)

Hanoi, Aug 1 (Prensa Latina) Although it is not growing at the rate desired, Vietnam’s economy is showing positive signs at the end of the first half of the year, according to Prime Minister (PM) Nguyen Tan Dung.

His assessment comes as a result of slowed inflation, maintained stability in the macro-economy and the promotion of production in agriculture and industry. (more…)

 

Updated : Wed, July 18, 2012,7:30 PM (GMT+0700)

Vietnam’s economic policy appears to be bringing about a recovery in growth, said The Korea Herald, one of the largest English-language newspapers of the Republic of Korea, in its July 17 edition.

The article says with monetary and fiscal tools, the Vietnamese economy performed well in the first half of 2012 while Asian economic growth was slow and European and US economies worsened by the day. (more…)