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Cold weather remains unabated for next ten days

In Uncategorized on January 12, 2011 at 7:15 am

A bitter cold wave covered northern Vietnam on Sunday, lashing it with rain and cold northeasterly winds. The National Hydro Meteorological Forecasting Center predicted these conditions would last for a further ten days.

The temperature has dropped to less than 8-9 degrees Celsius in Hanoi and remained below 0 degree Celsius in the mountainous provinces of Lang Son and Cao Bang.

The northern provinces of the central region have also suffered bitter cold winds.

It is expected that the biting cold weather will prevail over northern Vietnam on January 11 and 14 and icy and snowy conditions may cover the Mau Son mountaintop and also other places in the mountainous region.

The entire belt from Da Nang to the southern part of the central region has been affected by this bitter cold wave.

Meanwhile, the Central Highlands and southern regions will continue to experience extreme cold at night and during the early hour of morning. The prevailing temperatures will hover around 18-20 degrees Celsius.

Source: SGGP

VN-Index recoils to near 480

In Uncategorized on January 12, 2011 at 7:14 am

Vietnam’s benchmark VN-Index dropped the second day, retreating to near 480 points on January 10 as investors lost confidence.

The measure of 276 companies and five mutual funds listed on the Ho Chi Minh Stock Exchange shed 0.27 percent, or 1.31 points, to finish at 480.55 points.

Among the index members, 50 gained, 195 fell, while 36 remained unchanged.

Trading volume on the city bourse stayed at low level as around 33.8 million shares changed hands at a value of VND790.37 billion this morning.

Saigon Thuong Tin Commercial Bank or Sacombank (STB) led the list of most active shares in volume with 2.39 million shares changing hands.

Saigon Securities Inc. (SSI), the country largest brokerage, followed with 2.13 million shares.

Tan Tao Investment Industry Corporation (ITA) came next with 1.28 million shares.

Cuong Thuan Investment Corporation (CTI), Hanoi Maritime Holding Company (MHC), and Seafood Joint Stock Company No4 (TS4) all plunged the daily maximum allowed limit of 5 percent to VND47,500, VND7,600, and VND20,900 respectively.

Duc Long Gia Lai Group Joint Stock Company (DLG) shrank 4.9 percent to VND27,200.

Cadovimex Seafood Import-Export and Processing Joint Stock Company (CAD) fell for the second day, eroding 4.88 percent to VND7,800.

H.A.I Joint Stock Company (HAI) capped its three-consecutive-trading-session losing streak, rebounding 4.94 percent to VND34,000.

Sao Vang Rubber Joint Stock Company (SRC) climbed for three straight days, adding up 4.93 percent to VND29,800.

PAN Pacific Corporation (PAN) advanced 4.69 percent to trade at VND20,100 from VND19,200 the previous trading session.

The smaller bourse in the north collapsed as the Hanoi’s HNX-Index slumped 2.34 percent, or 2.57 points, to close at 107.47 points. Around 31.4 million shares were traded at VND592.51 billion.

Meanwhile, the UPCom-Index treaded water this morning, remaining at 44.72 points. A total of 189,600 shares changed hands at a value of VND2.87 billion.

Source: SGGP

Banks to start year with challenges and oppotunities

In Uncategorized on January 12, 2011 at 7:14 am

Commercial banks are set to cope with challenges and opportunities in 2011 as monetary policies will be more flexible, Dr. Le Xuan Nghia, vice chairman of the National Financial Supervisory Committee, said in an interview with Dau Tu Tai Chinh Newspaper.

(Photo:Minh Tri)

With the global economy will surely recover in 2011, foreign investments will return strongly to emerging markets in Asia, including Vietnam, said Dr. Le Xuan Nghia, vice chairman of the National Financial Supervisory Committee.

“Statistics show foreign investments keep flowing constantly into Vietnam in the last four months. Despite the inflation rising relatively high, investors are not too worried about the possibly of an unstable macro economy as the basic rate caused by monetary policies remains low,” Nghia said.

The inflation will decrease to 7-8 percent in this year if the gasoline price is around US$85-90 per barrel, helping commercial banks to cut interest rates, he said.

“Commercial lenders had to cope with the difference between the long-term and short-term interest rates last year, which hit the banking system hard. Therefore they should strengthen their operation as soon as possible this year,” he said.

The deposit interest rate fluctuation at the end of 2010 showed the interest rate was not driven by both the monetary market and the governmental regulations, threatening the safety of banks’ operation, Nghia noticed.

“Lenders this year will also have to cope with issues from the foreign exchange rate. They should offer foreign currency loans with the interest rates, which are adequate to each type of clients,” he said.

The vice chairman of the National Financial Supervisory Committee also warned the competition of foreign-owned and local banks this year will become harsher as the formers will be allowed to take the dong deposits from Vietnamese clients.

“But I do not think local lenders will be so worried about that. Foreign banks remain behind local lenders as their weaker financial strength and a fewer number of branches nationwide. Moreover, the strict risk managements prevent them from taking risks in such a small market in Vietnam,” he said.

“Besides, human resource is also a tough challenge for foreign lenders. Therefore, the biggest competitor of local banks in the next couple year is still themselves.”

Local lenders will also have to change their entire accounting software to match up with new regulations in the Law of Credit Institutions, which took effective on Jan. 1st 2011, he said.

“The new Law of Credit Institutions has some more regulations including forbidding banks to deposit to each others and restraining the credit growth of banks,” Dr. Nghia said.

Source: SGGP