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Posts Tagged ‘2011’

Interest rates expected to drop in 2011

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

Interest rates are expected to go down this year because they are presently too high and cannot rise any higher, an economist has said.

Transactions conducted at a Southern Bank branch in Ho Chi Minh City (Photo: SGGP)

This year has seen skyrocketing interest rates due to the soaring inflation in 2010, with savings interest rates and lending interest rates being 14 percent per year and 17-18 percent per year respectively.
 
According to economists, the rates are already too high for enterprises; therefore, it is unlikely that interest rates will go any higher.
 
Enterprises and commercial banks have hoped that the State Bank of Vietnam will regulate interest rates in compliance with the Law on Credit Institutions, which took effect early this year.
 
Banks said that this will give them the flexibility in adjusting interest rates in accordance with foreign exchange rates and inflation.
 
Economists said the interest rates will drop by the end of the first quarter of 2011, because demand for production and business funds from various enterprises will decrease after the Tet holiday.
 
In addition, banks will be able to mobilize funds from residents more easily. This is because the inbound remittance will increase, and people will have more money in cash.
 
Therefore, banks might reduce their lending interest rates to 15-16 percent by the second quarter of 2011.
 
Some commercial banks said they cannot lower the interest rates yet, because the expenses for mobilizing funds are still very high.
 
However, they said they can offer lower rates to their regular client base.
 
The central bank said early this year that it will use the prime interest rate to curb high interest rates, but not as a monetary policy management tool.  
 
The bank will focus its management on refinance, open market operations (OMO) and rediscount rates.
 
The central bank said OMO rates will be flexible and be adjusted to market rates.
 
Deputy general director of a joint stock bank said that to lower interest rates and stabilize the monetary market in 2011, drastic solutions will have to be taken to contain inflation.
 
Economists said there should be a special mechanism concerning small commercial banks.
 
They said for the long run, interest rates for the dong should be floated in the government’s direction. However, in abnormal market conditions, the central bank must regulate market interest rates.
 
The central bank also said that it has targeted credit growth at 23 percent for 2011, two percent lower than last year, and loans will be prioritized for the production sector.

Source: SGGP

Stock market to jump up in first half of 2011, experts predict

In Uncategorized on January 8, 2011 at 4:26 am

Vietnam’s stock market will roar back in the first half of the year on the US’s bullish market, financial experts expect.

(Photo:Minh Tri)

The stock market in Vietnam last year were effected by many macroeconomic factors, while nearby markets including Singapore, Indonesia and Thailand were boosted by the US’s financial bailouts, said M.A. Le Dat Chi, head of the financial investment faculty of the University of Economics Ho Chi Minh City.


“A part of the US$600 billion bailout of the US flew into Asian markets, especially emerging ones. It was just a small proportion for the US market, but it did make big impact to emerging markets, except of Vietnam,” Tri said.


Only investors holding control stake in listed enterprises made profits from dividends as the VN-Index dropped to 430 points in the last quarter of last year, with many shares slumping to incredible levels, he said.


“Vietnam’s stock market is at the bottom, with the ratio of dividends per share equal to 15 percent. This rate is extremely attractive to some investment funds,” the economist said.


“Besides, investors’ confidence in a successful Eleventh Party Congress with new members elected into the central committee will boost the market sentiment. Foreign investments will flow stronger into the stock market, which hit the bottom. Therefore, the market will likely to roar back in 2011.”


Statistics showed nearly the foreign indirect investments (FII) pour into the stock market last year reached $1 billion. Stabilizing the foreign exchange rate should be the top priority this year to attract more FII, Tri noticed.


The financial expert also recommended that more adequate taxes on shares will attract more foreign investors.


“Instead of asking foreigners either to pay security before entering the market or not to sell shares in at least one year, we can impose taxes on the dividend from their share investments,” he suggested


Stock market analysts also predict the market will likely to recover strongly in the first half of the year on the increase of the US market.


“The US dollar getting weaker in the first half of 2011 will be good news for the country’s stock market. However, it will be stronger again in the last half. The market’s winning run will likely to last until June, with Dow Jones Index climbing 12,600 points,”  Tri said.


Statistics showed the stock market usually climbs up in March, April and December every year.


However, the market is still carrying some risks including the US dollar getting stronger constantly, warned Pham Xuan Anh, deputy head of the brokerage BIDV-BSC’s market analysis unit.


“Standard Chartered Bank expected the foreign exchange of Vietnam dong and dollar will reach VND20,800 per dollar at the end of the year, a year-on-year increase of around 6.6 percent,” said Tri.


“The Asia Development Bank last September predicted Vietnam’s inflation in 2010 would rise to 7.5 percent, caused by a weakening dong and an increase in food prices.”


Low foreign currency reserve and large amounts of dollar and gold owned by residents would put the central bank in difficult time, Tri added.

Source: SGGP

City hosts ASEAN Golden Voice Festival 2011

In Uncategorized on January 8, 2011 at 4:19 am

The 2nd ASEAN Golden Voice Festival will take place at the Ho Chi Minh City Television Theater on January 5, 7 and 8.

         Singers Thu Minh (L) and Kasim Hoang Vu

The contest has attracted nearly 20 singers from Brunei, Indonesia, Malaysia, Myanmar, Philippines, Thailand, Cambodia and Vietnam. Special invitees from Japan will also join them.


Every country is allowed to send four participants. Representing Viet Nam will be singers Thu Minh, Kasim Hoang Vu, H’Zina Bya and Do Tung Lam.

They will go up against well-known singers including FIQ and Moon (Brunei); Plengpraphun Kingthong and Wongloung Sirilux (Thailand); Khim Su Su Naing and Mr.Kyaw Zin Min (Myanmar); Iqwal Hafiz and Katherine Chan (Malaysia); Netta Kusumah Dewi and Hershon (Indonesia); Uela Basco (Philippines); and finally, Samsann Annda and Vannika (Cambodia).


The competition consists of two categories — traditional and contemporary folk music, and pop. In the pop category, singers will have to perform in English, but folk songs can be in their mother tongues.

The jury will comprise famous Vietnamese musicians such as Tran Long An, Nguyen Ngoc Thien and Duong Thu; Japanese leading music producer Keitaro Kamo; Indonesian music teacher and choreographer Indira Sotyawati.


There will be two categories, each offering four gold medals, four silver medals, four bronze medals, and a prize nominated by audiences. 

The contest is jointly organized by Ho Chi Minh City Television and Cat Tien Sa Advertising Company. The contest will be broadcast live on HTV9 channel and other regional channels.

Vietnam hosted the ASEAN Golden Voice Festival for the first time in 2008.


 

Source: SGGP

Vietnam hosts the Youth League Asia Pacific Baseball Tournament 2011

In Uncategorized on January 8, 2011 at 4:14 am




Vietnam hosts the Youth League Asia Pacific Baseball Tournament 2011


QĐND – Saturday, January 01, 2011, 21:7 (GMT+7)

The Youth League Asia-Pacific Baseball Tournament 2011 will take place for the first time in Vietnam from January 13th to 16th to select the best teams from the Asian Pacific who will compete in the World Cup Baseball 2011 in Texas, US in August 2011.


The U10 and U12 teams of the Hanoi Baseball Club will join the tournament.


The event is organized by the General Department of Sports and Physical Training; the Vinh Phuc People’s Committee; the Vinh Phuc Department of Culture, Sports, and Tourism; and the Hanoi Baseball Club.


Source: VH


Translated by Van Hieu


Source: QDND

Vietnam’s investment overseas to rise in 2011

In Uncategorized on January 8, 2011 at 4:12 am




Vietnam’s investment overseas to rise in 2011


QĐND – Monday, January 03, 2011, 20:37 (GMT+7)

Vietnam’s overseas investment capital is estimated to reach US$1.5-2 billion in 2011, of which US$700-900 billion expected to be disbursed, said an official of the Ministry of Planning and Investment (MPI).


Head of the MPI’s Foreign Investment Agency Do Nhat Hoang emphasised the need to monitor overseas investment activities to reasonably regulate the capital flow to stabilise the economy.


In 2010, Vietnam had 107 investment projects in 25 countries and territories with combined registered capital of US$2.926 billion. Disbursed capital totalled around US$900 million, of which over US$700 million was in the mining industry, US$70 million in agro-forestry and fisheries sector and distribution and retail sector accounted for US$53 million.

Source: VNA

Source: QDND

Low-income housing to expand in 2011

In Uncategorized on January 8, 2011 at 4:08 am




Low-income housing to expand in 2011


QĐND – Thursday, January 06, 2011, 21:17 (GMT+7)

More than 70,000 low-income households will have new apartments this year, according to Deputy Minister of Construction Nguyen Tran Nam.


He said his ministry and others would work to mobilise capital to hasten construction of low-income housing.


The more than 70,000 households which were mentioned above are considered to have the most severe financial difficulty of eligible families.


After one year of implementing the Government’s programme to build low-income houses, 37 projects nationwide have started, with a total investment of VND3.6 trillion (US$180 million) and total floor space of 750,000 square metres.


These projects will provide living space for a total of 64,000 households.


By the end of 2010, construction on 1,653 apartments had been completed, with 728 of them sold to residents in Hanoi and Da Nang.


Recently, authorities of Hanoi and Da Nang told contractors to complete construction on 728 apartments so they can be handed over before Tet (Lunar New Year) holiday.


This year, there will be many more ongoing projects finished and new projects launched.


Nationwide, investment of VND23 trillion ($1.15 billion) has been registered for 190 projects to build houses for low-income people, Nam said.


Of those projects, around 170,000 apartments with a total floor space of 7 million square metres will be adapted or renovated for around 700,000 low-income people during the 2011-15 period, he added.


Policy


According to the incentive policy of the Vietnam Government for investors in low-income housing, which took effect in June last year, investors will enjoy exemptions on value-added taxes (VAT) and land-use or land-lease charges.


Those who invest in housing projects for low-income earners will also receive a corporate income-tax exemption for the first four years and a 50 percent discount for the next nine years. After that, the rate will be 10 percent.


The normal corporate income-tax rate is 25 percent.


The proportion of housing area on the project sites has been increased by 1.5 times more than what is allowed by current regulations.


Under the Government’s policy, investors are also eligible for low-interest loans, loans from localities’ Housing Development Funds and cleared plots of land.


Pham Si Liem, deputy chairman of the Vietnam Federation of Civil Engineering Associations, said localities should also assist low-income people, including offering long-term, low-interest bank loans.


To ensure security for the loans, the loans should be for around 80 percent of the house’s value, he said.


“Creating conditions for buyers will accelerate house demand; then the market will itself increase the supply,” Liem said.


Last year, around 1,000 government employees in HCM City were eligible to receive loans approved by the city’s Housing Development Fund.


Of that figure, 522 people have received loans for a total amount of VND132 billion. The remaining people are still looking for housing.


Source: VNA


Source: QDND

Spring Flower Festival 2011 to display 8,000 exhibits

In Uncategorized on December 24, 2010 at 4:36 am

The Spring Flower Festival for 2011 will be held at Tao Dan Park in HCM City from lunar December 25 to lunar January 6, 2011 (January 28 to February 8, 2011).

Spring Flower Festival will bring to visitors various types of bonsai trees. (Photo: KK)

The annual festival will feature around 8,000 exhibits including bonsai trees, ornamental plants, orchids, cacti, apricots and peach blossoms, ornamental birds, fruit arrangements and rock gardens from more than 600 Vietnamese and foreign artisans and flower clubs.


The annual festival is a traditional, cultural activity in Ho Chi Minh City. It is for the occasion of the Lunar New Year and attracts many people to the city.


Tourists and visitors will have a chance to enjoy many things such as: a bird singing competition, traditional music, folk games, a food fair, painting and a calligraphy exhibition.


Three special music performances will take place in the opening ceremony of the festival, which is the evening of lunar December 25.


The event aims to mark the 11th National Congress of the Communist Party of Vietnam and the 100th anniversary to the day late President Ho Chi Minh left Vietnam to seek a way for national salvation at Ben Nha Rong (Nha Rong Wharf) in 1911.


 

Source: SGGP

Vietnam to host U19 Women Football Championships 2011

In Uncategorized on December 24, 2010 at 4:26 am




Vietnam to host U19 Women Football Championships 2011


QĐND – Thursday, December 23, 2010, 20:33 (GMT+7)

Vietnam has just been entrusted by the Asian Football Confederation (AFC) to host the final round of the U19 Women Football Champion 2011, according to the Vietnam Football Federation (VFF).


The final round will kick off on October 6th, 2011 and last until October 16th.


The Vietnamese U19 Female Football team will take part in the event after it successfully finished the second round.


The 5 other teams that will play in the final round include Japan, the Republic of Korea, the People’s Democratic Republic of Korea, China and Australia.


Vietnamese officials expect that the Vietnamese female footballers will reap good fruits when they play in Vietnam as the host team.


Source: LD


Translated by Thu Nguyen


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

Tourism Year 2011 to to boost tourism in south central region

In Uncategorized on December 16, 2010 at 9:51 am

The National Tourism Year 2011 program will focus on boosting the tourist industry and to encourage more protection of our beautiful beaches in the south central region, said a tourist official on Sunday.


The organizing board met in Tuy Hoa City, central province of Phu Yen and this was to introduce more than 30 cultural, sport and tourism events, which are scheduled to take place in the south-central coastal region next year.

Logo of the National Tourism Year 2011


The South-central coastal region includes Quang Nam, Quang Ngai, Binh Dinh, Phu Yen, Khanh Hoa, Ninh Thuan and Binh Thuan provinces and Da Nang City,
 
The press conference was attended by representatives from cities and provinces from all over the south-central coastal region and more than 30 press agencies.


Under the theme of “Visit Vietnam Year – Phu Yen 2011: Exotic Beach and Island”, major events of the National Tourism Year 2011 will include the international mountaineering tournament at Da Bia mount, the Vietnam-South Korea cultural exchange, the sea and island month and the ASEAN traditional music festival.


The opening ceremony of the National Tourism Year is scheduled to take place in Tuy Hoa City on April 1, 2011 to mark the 400th anniversary of the province’s establishment.


In preparation for the National Tourism Year 2011, Phu Yen Province has organized a series of cultural, sport and tourism events, aimed to popularize the National Tourism Year 2011 and to introduce the province’s exotic land to as many people as possible.


The province has built tourism facilities and has upgraded many projects and various infrastructures. With capital investment of over VND230 billion (US$11.5 million), the province’s tourism sector has launched training courses for tourism staff to improve the quality of tourist products and services.


As schedule, from December 3-10, a tourism research team has been studying famous tourist spots from Khanh Hoa Province to Da Nang Province.


Since the beginning of this year, the southern central coastal province of Phu Yen has welcomed more than 312,500 visitors, including 12,000 international tourists, an increase of 20% as compared to the same period last year.

According to the province’s Department of Culture, Sports, and Tourism, due to the increased number of tourists, the provincial tourism sector has earned 249.5 billion VND, an increase of 1.7 times compared to last year’s figure, and 50% of local hotel rooms were now occupied.

Source: SGGP