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Archive for December 16th, 2010|Daily archive page

Bank stocks help rally markets

In Uncategorized on December 16, 2010 at 9:26 pm

Bank stocks help rally markets

QĐND – Thursday, December 16, 2010, 21:2 (GMT+7)

Stock indices rose steadily on Dec. 15 after the previous trading session’s modest retreat with bank shares again performing strongly.

On the HCM Stock Exchange, three out of four banking stocks to post gains hit their ceiling prices, as did four out of five on the Hanoi exchange. Hanoi Housing Bank (HBB), with 12.6 million shares changing hands, was again the most heavily-traded share nationwide.

The Government decision to extend the deadline for credit institutions to comply with higher charter capital requirements seems to have further lifted investor expectations of a long-term market rise, especially among banking shares.

Le Dat Chi, head of HCM City Economics University ‘s corporate finance faculty, said that when small banks were not under pressure to raise capital, interest rates could stabilise, a good sign for the stock market.

“The extension decision relieved investor psychology which has long been repressed by fear that capital flows were being diverted to banks under pressure to increase capital and adding to the pressure of increasing share supplies,” Chi said.

A large amount of money that had been prepared for this capital increase could also end up being temporarily invested in the stock market, he added.

Bao Viet Securities Co analyst Nguyen Duc Thi agreed that the extension would reduce difficulties for banks which may have had to borrow at any cost to meet the charter capital requirements – but he was also relatively surprised that the term had been extended up to one year instead of six months, as had been requested by the State Bank of Vietnam.

On the HCM Stock Exchange on Dec. 15, the VN-Index closed up 0.78 percent to 493.47 points. The value of trades decreased 33 percent from the previous day’s session, however, to 2.2 trillion VND (109.4 million USD), on a volume of 95.6 million shares.

Decliners continued to outnumber advancers by 146-77, but gains in a number of leading shares helped offset losses, including insurer Bao Viet Holdings (BVH), Phu My Fertilisers (DPM), Masan Group (MSN) and real estate developer Vincom (VIC).

On the Hanoi Stock Exchange, the HNX-Index closed at 120.60 points, a gain of 0.83 percent. The value of trades reached 1.55 trillion VND (77.8 million USD), with nearly 79 million shares changing hands.

Foreign investors remained net buyers on the HCM City market on Dec. 15 by a net of almost 48 billion VND (2.4 million USD) but were net sellers in Hanoi market of 3.4 billion VND (170,000 USD) worth of shares.

Source: VNA

Source: QDND

Cashew export value to reach 1b USD for first time

In Uncategorized on December 16, 2010 at 9:26 pm

Cashew export value to reach 1b USD for first time

QĐND – Thursday, December 16, 2010, 21:3 (GMT+7)

The cashew industry is expected to top the 1 billion USD mark in export value this year for the first time, helping the country maintain its position as the world’s leading cashew exporter for the fourth consecutive year, the Vietnam Cashew Association (Vinacas) says.

The industry was predicted to export 198,000 tonnes of cashews, earning 1.14 billion USD for this year, said Nguyen Thai Hoc, Vinacas chairman. Exports would jump by 11.8 percent in volume and 34 percent in value against last year.

A year-on-year increase of 32 percent in value to 1.5 billion USD was projected for next year, Hoc said.

“It might be difficult to hit this target because the industry may lack raw materials and workers for processing export products. It may also have to struggle due to low product diversification and increased processing costs.”

“However, Vinacas hopes that the business environment at home and abroad will help the industry reach next year’s target,” he added.

The association had already completed a draft development strategy for the cashew industry by 2015 and towards 2020 to submit to the Government and other relevant ministries and sectors, Hoc said.

According to the Ministry of Agriculture and Rural Development, the industry exported 179,000 tonnes of cashew in the first 11 months of this year, worth 1 billion USD, a year-on-year increase of 11 percent in volume and 31.9 percent in value.

The average export price of Vietnamese cashew jumped by 27 percent to 6,000 USD per tonne compared with the same period last year, said Hoc.

Vietnam ‘s cashew nuts are exported to 52 countries and territories, including the United States , China and the European Union.

Source: VNA

Source: QDND

Land fever to recur in 2011?

In Uncategorized on December 16, 2010 at 9:25 pm

Land fever to recur in 2011?

QĐND – Thursday, December 16, 2010, 21:4 (GMT+7)

Experts believe that sooner or later a land fever will occurr , , and this should not be seen as a spontaneous phenomenon, but as the result of the lack of appropriate economic regulations.

The demand for real estate increasingly high

As Vietnam urbanizes, more and more well-off families use their savings to purchase houses and land in Hanoi, HCM City and other big urban areas

With a population of 86 million, Vietnam ranks 13th among 218 countries and territories in the world, while its area ranks only  64th. With 260 people per square kilometer, Vietnam’spopulation density is double that of other Southaast Asian countires and five times higher than the average figure in the world. However, urbanites only account for 30 percent of the total population.

Analysts believe that together with the economic growth, the percentage of urbanites would increase from 30 percent to 50 percent in the next 10 years.

Moreover, the growing prosperity of the national economy has been attracting overseas Vietnamese and foreigners. More and more overseas Vietnamese have been returning to Vietnam, and many of them want to settle here. The number of foreigners working for representative offices and international institutions has been increasing, also raising the demand in the real estate market.

Once the number of urban residents and the living standards standards increase, the demand for accommodation will grow accordingly. Sincethe land fund is limited, this pushes the price of the real estates. This explains why the market regularly witnesses land fevers.

The “periodic motion” of the real estate market

Since 1993, the real estate market has witnessed four  instances of land fever. The first one occurred in 1993-1994, the second one in 2001-2002, the third in late 2007 and the latest in early 2010.

One can see that there was a long, 6-7 year period of time between the first and the second, with each lasting two years. Meanwhile, the time between the two last fever attacks was shorter and their duration was also shorter. The third land fever in 2007-2008 lasted only six months, while the fourth lasted four months only.

This was because of the timely intervention from the State. the State, which holds big areas of land and a large accommodation fund, and other financial tools, successfully cooled the fever.

Another factor that affected the real estate market in Vietnam was the global financial crisis in early 2008. After 2010, when the economic recession bottoms out, a new period of recovery and price increases will begin.

Dr. Nguyen Thac Hoat, a finance expert, believes that a recurrence of land fever is inevitable.

The influences of macroeconomic factors

Contrary to most experts’ predictions , Nguyen Tho Phung, a real estate expert at Vietinbank, thinks that the land price fever is not very likely to happen, at least in the first half of 2011.

The main reasonbeing, i that the State Bank of Vietnam has requested commercial banks to limit the loans to the real estate sector. Besides, once the plan for Hanoi development by 2030 is approved, many new real estate projects will be implemented.  the land price fever? will not occur, once the supply is profuse.

Dr. Nguyen Van Nam, former Member of the Prime Minister’s Research Team, said that in general, before the Communist Party’s Congress, all activities in the national economy seem to go more slowly.

The new period forof the national economy will begin after January, when the Communist Party’s Congress finishes.

The goods prices and inflation may increase again. The real estate prices may also increase, because the demand for real estate is becoming higher and higher, not only from those, who need accommodation, but also from those who want to save their money in assets.

Source: VNN

Source: QDND

Ha Long bay tours on Emeraude Classic Cruises

In Uncategorized on December 16, 2010 at 2:30 pm

Ha Long bay tours on Emeraude Classic Cruises

QĐND – Thursday, December 16, 2010, 21:5 (GMT+7)

Ha Long Bay in the northern province of Quang Ninh, one of the most famous tourist sites in Vietnam and in the world, has attracted a large number of domestic and foreign visitors.

A new tour with 3 days and 2 nights to discover the beauty of the bay on Emeraude Classic Cruises has been launched by Slow Pony Adventures Company. Formerly the tour used to last two days and one night.

Besides enjoying wine and the picturesque beauty of the bay on board the cruise, visitors can join various activities such as climbing mountains, rowing kayaks, walking or exploring beautiful grottoes and others.

Launched in 2003, Emeraude Classic Cruise with 12 Superior cabins, 22 Deluxe and 3 Suite cabins can carry 74 passengers.

Source: HNM

Translated by Duy Minh

Source: QDND

First commercial flight from Far East lands at Cam Ranh

In Uncategorized on December 16, 2010 at 2:29 pm

First commercial flight from Far East lands at Cam Ranh

QĐND – Thursday, December 16, 2010, 21:3 (GMT+7)

The first commercial flight from Vladivostok city, Russia , by the Russian carrier Vladivostok Air landed at the Cam Ranh international airport in the central province of Khanh Hoa on Dec. 15.

Another flight left Cam Ranh for Vladivostok the same day, marking the launch of a direct air route between the two cities.

The airline said two similar flights will be conducted between another Far East city, Khabarov and Cam Ranh on Dec. 16.

According to Vladivostok Air, 14 flights will be conducted on the two routes from mid-December through to March, with two flights every two weeks in the immediate future. The airline will use TU 240 aircraft on the routes, which target Russian tourists who want to escape from serve winter in the Far East . Khanh Hoa boats the famous resort city of Nha Trang with warm weather and sunny beaches.

Cam Ranh Airport ’s authorities pledged to halve the charges on landing and services for Vladivostok Air in the initial period.

Nearly 10 four and five star hotels and resorts in Nha Trang have also agreed to reduce their prices by between 20-50 percent for Russian tourists flying to Nha Trang on the new routes.

Cam Ranh Airport became an international airport in December 2009 and has recorded an average annual growth rate in passenger numbers of 21 percent, the highest rate in Vietnam.

Source: VNA

Source: QDND

Vietnam’s tourism promoted in foreign markets

In Uncategorized on December 16, 2010 at 2:29 pm

Vietnam’s tourism promoted in foreign markets

QĐND – Thursday, December 16, 2010, 21:5 (GMT+7)

The Vietnam Administration of Tourism has been organising road-show programs in Singapore and Malaysia to promote Vietnam’s tourism abroad.

Recently, the Vietnam Administration of Tourism has worked out programs to promote Vietnam tourism in two countries, considering them key tourism markets of Vietnam.

The ongoing road show program from December 15th to 21st, has introduced famous tourist sites, new tourist products, cultural identities, plans to further develop Vietnam’s tourism to foreigners. The road-show also creates opportunities for domestic and foreign travel businesses to boost cooperation.

Source: HNM

Translated by Duy Minh

Source: QDND

Lam Dong Tea Festival to open

In Uncategorized on December 16, 2010 at 2:29 pm

Lam Dong Tea Festival to open

QĐND – Thursday, December 16, 2010, 21:5 (GMT+7)

Tea producers, processors and local people in Bao Loc and Dalat cities, Lam Dong Province will have opportunity to participate in various activities in the third Lam Dong Tea Festival 2010 to open on December 25th.

The festival includes a flower procession, tea-picking contest, a contest on knowledge about tea and life, exhibitions and scientific seminars.

Noteworthy is that this year’s festival will make public the certificate of the trademark “B’lao Tea” to honor tea producers.

The organisers expected that the three-day event will encourage the tea industry of Lam Dong, in particular, and of Vietnam in general, to produce more high quality tea for export, and to further improve tea-producers’ living standards.

Source: SGGP

Translated by Tran Hoai

Source: QDND

Gold deposits hit with income-tax on interest

In Uncategorized on December 16, 2010 at 2:28 pm

Gold deposits hit with income-tax on interest

QĐND – Thursday, December 16, 2010, 21:2 (GMT+7)

Holders of gold certificates issued by commercial banks are required to pay 5-percent personal income tax on interest earned by the certificates, according to a ruling by the State Bank of Vietnam aimed at reducing the level of investment in gold.

Under State Bank Circular No 22, issued in October, banks were forbidden from accepting gold deposits but could offer commercial paper in exchange for gold.

“This kind of business poses huge risks to the banking system due to unpredictable fluctuations in gold prices,” said a senior monetary policy official with the State Bank, who asked to remain anonymous.

“The development of gold deposits and lending among the non-business sector, which the State Bank does not encourage, has also increased the dollarisation of the economy,” he added.

HDBank and VietA Bank have withheld 5 percent of gold certificate interest payments since November to cover the taxes.

“Buying these certificates is seen as an investment channel and the holders have to pay 5 percent personal income tax,” said VietA general director Pham Duy Hung.

HDBank’s general director Nguyen Huu Dang said his bank had paid taxes on gold certificates for customers for years.

Other big gold traders like Eximbank, DongA Bank or ACB have not implied such new policy.

“Collecting personal income tax on gold certificate interest is reasonable. However, we are still confused about how to behave with the interest on certificates of deposit in Vietnamese dong and US dollars,” commented the deputy director of a HCM City-based bank, who asked to have his name withheld.

Current tax regulations state that all interest income on bonds or other commercial paper (except Government bonds) is taxable income.

HCM City Tax Department told Tuoi Tre (Youth) newspaper that interest from gold certificates must be taxed, but it has not yet provided commercial banks with documentary guidelines.

In a proposal sent to the State Bank of Vietnam, the General Tax Department recommended that interest on short- and long-term certificates of deposit be considered interest on savings accounts and be exempted from income tax.

An estimated 92.6 tonnes of gold, worth 4 billion USD, is currently deposited with commercial banks. If the central bank were to limit the banks’ ability to profit from these deposits, a large volume of gold would likely to be unleashed on the market, helping lower prices while easing pressures on the foreign exchange market.

Source: VNA

Source: QDND

Spotlight falls on ethnic minorities

In Uncategorized on December 16, 2010 at 2:28 pm

Spotlight falls on ethnic minorities

QĐND – Thursday, December 16, 2010, 21:3 (GMT+7)

Concrete and appropriate policies are needed to ensure ethnic minorities participate fully in the nation’s economy, said Be Truong Thanh, vice standing chairman of the Committee for Ethnic Minority Affairs at the third two-day session of the UN forum in Geneva , which ended on Dec. 15.

He said ethnic groups should be classified according to their geographical location – such as mountainous or delta – and their socio-economic development level, in order to implement appropriate policies.

He said the Government had been carrying out a number of programmes designed to meet the needs of specific ethnic groups.

These programmes include the implementation of hunger elimination and poverty reduction in the extremely difficult areas in a bid to reduce the poverty level of households. He said Vietnam was implementing a rapid and sustainable poverty-reduction programme in more than 60 extremely difficult and poor districts in ethnic minority areas where the poor account for more than 50 percent of all households.

He also said the Government had begun upgrading and building new infrastructure in extremely difficult areas that included building new roads and improving irrigation channels.

Thanh said projects had been implemented to preserve the indigenous people’s culture.

Five ethnic groups with a population of less than 1,000 have been targeted. They include the Si La, Pu Peo, O Du, Ro Mam and Brau minorities. Further projects will be carried out targeting ethnic groups with a population of less than 10,000.

The Government is also planning to boost trade and tourism in mountainous and remote areas to boost local incomes.

Thanh said it was important to raise awareness among minority groups of the law so that their rights are protected.

He said the participation of local communities in implementing the Government’s programmes was essential. He said the State could provide the “fishing rod, but not the fish.”

He said that if the Government’s programmes were implemented successfully, minority groups would see a marked improvement in their standard of living.

Source: VNA

Source: QDND

Road works construction to pause for New Year holidays

In Uncategorized on December 16, 2010 at 2:28 pm

Road works construction to pause for New Year holidays

QĐND – Thursday, December 16, 2010, 21:3 (GMT+7)

The Ho Chi Minh City Department of Transport on Wednesday announced a plan to temporarily halt the construction of road works during the western and lunar New Year celebrations.

Specifically, for the road works involving the installation of technical infrastructure, the construction will be halted from December 31 to January 1, 2011.

Companies have been ordered to urgently restore any road surface that may need repairing, and to clean construction sites well before December 31.

With regard to drainage system upgrading projects, they will be permitted to keep railings around the construction site, but will have to clean the area thoroughly.

During the Tet holidays, the technical infrastructure installation will be ceased from January 18 to February 10.

Execution units have to clean up the sites and restore any road surface that may need repairing before January 26.

Source: SGGP

Source: QDND