Open policies required to control gold fluctuation, says expert

Open and market-oriented policies will put gold under control, says director Tran Trong Quoc Khanh of a gold shop of the Asia Commercial Bank. Peopel rush to sell gold jewelries at a HCMC-based gold shop after the precious metal constantly hit llifetime highs (Photo: Minh Tri) "Vietnam's gold follows the global move. Yet there is still a gap between them as the domestic and international markets are not connected with each others," Khanh says in an interview with SGGP Dau Tu Tai Chinh Newspaper. Legal documents having been released recently show the government restricts gold trade although it still continues to recognize the right of citizens to have gold holdings, Khanh says. Vietnam has already forbidden banks from lending gold for the production and trade of gold bars since October last year. The new rule is an attempt to eliminate the role of gold as a means of payment in Vietnam, the central bank said. While the central bank has already ruled out any ban on gold bullion … [Read more...]

Government’s proposed lump-sum taxes reduction vital, say officials

The government's proposals on tax exemption and reduction have raised questions from the National Assembly's Committee for Budget and Finance (CBF) on the effectiveness of the measures in boosting the economy. The government's proposed tax reduction for landlords of rent houses for workers and students, private kindergartens and food suppliers for workers is vital (Photo: Minh Tri) SGGP Dau Tu Tai Chinh Newspaper has caught up with Tran Du Lich, deputy head of the Ho Chi Minh City NA deputy delegation, to interview him about the suggesting measures. Tran Du Lich: I agree with most of the government's proposals, except for one on a 30 percent corporate income tax reduction. I align with CBF's suggestion that the tax should be reduced for small- and medium-size enterprises (SMEs), footwear makers, textile firms, food suppliers, electronic spare part producers and public infrastructure builders only. Dau Tu Tai Chinh: What is your opinion about the government's proposal on individual … [Read more...]

Banks post H2 positive earning despite high-cost loans

Many commercial banks announce to earn positive profits, while many businesses have to reduce operation and lay off staffs in an attempt to survive the economy meltdown. Depositors fill saving application forms at a HCMC-based branch of Asia Commercial Bank. Despite high lending rate, lenders still made healthy earning, while enterprises incurred losses Statistics show many lenders achieved booming earning results in the first six months of the year, making 40-50 per cent of this year's target. Sacombank, Vietnam's fifth largest partly private lender by assets, announced in a financial report that it earned a pretax profit of VND1.5 trillion ($75 million) in the first half, an equivalent of 55 per cent of its goal this year. Ho Chi Minh City-based DongA Bank made a pretax profit of VND676 billion in the first two quarters, equal to 52 per cent of 2011's target. Vietcombank, the country's third biggest bank by asset, earned around VND3 trillion in the first half. Small-cap … [Read more...]

Solution for businesses in shortage of invoices

Many businesses are anxious about the printing houses' delay in the invoice orders as the deadline for tax filing - April 1st - is approaching. SGGP Dau Tu Tai Chinh has caught up with Nguyen Trong Hanh, deputy head of the Ho Chi Minh City Tax Bureau, to interview about the issue. The deadline for tax filing is approaching, but many businesses have not received invoice books from printing houses (Photo:tuoitrenews) Dau Tu Tai Chinh Newspaper: Many businesses complaint that they have not received invoiced they had ordered from printing houses. Who is responsible for this problem? Nguyen Trong Hanh: After receiving complaints from businesses, the HCMC Tax Bureau has inspected all printing houses in the city and found out the printing house Lien Son defaulted on around 5,000 invoice orders, of which 1,500 orders could be shared to other printing houses. Lien Son cited many businesses placed orders with small volumes, but asked to print their own colorful logo, which took long time to … [Read more...]

Banks raise dollar saving rates to attract remittance inflow in Tet

Banks' depositing interest rate are moving up on the fact that lenders are trying to attract strong remittance inflows that come in ahead of Tet, the Lunar New Year festival, general secretary Duong Thu Huong of the Vietnam Bank Association (VNBA) said in an interview with SGGP Dau Tu Tai Chinh magazine (Investment and Finance). Photo: cafeland Dau Tu Tai Chinh: What do you think about many experts' concern that lenders rush to mobilize dollars as they need more Vietnam dong capitals desperately? Duong Thu Huong: Some banks rush to raise dollar saving rates in an effort to mobilize overseas remittance, which is often getting very strong at the end of every year. However, this move will lead the remainders in the bank system to follow in an effort to keep their clients. They also said lenders are trying to mobilize more dollars in order to meet the increasing demand of companies which import a large volume of goods in preparation for the country's biggest holiday. It may also come … [Read more...]

Q1 marks 6.03 percent GDP growth

The Vietnamese economy grew 6.03 percent within the first quarter compared to that of 2014, the highest figure in a positive Q1 growth trend maintained from 2011 through 2014, unveiled the General Statistics Office (GSO) on March 26. The growth was fuelled by the mining sector and the processing & manufacturing industry, noted GSO Director General Nguyen Bich Lam. The industrial production index climbed 8.35 percent overall, an all-time annual high since 2010. The mining sector increased by 6.8 percent with increased figures seen in both crude and coal exploitation output. The processing & manufacturing industry rose 9.51 percent from substantial sales of popular products, including mobile phones, automobiles, televisions and aquatic-farming food. Meanwhile, the agro-forestry and service sectors gained 2.14 and 5.82 percent, respectively, both below last year’s figures. According to Lam, second-quarter growth will face difficulties if the mining sector does not … [Read more...]

First quarter GDP grows 6.03 percent

The Gross Domestic Product (GDP) of Vietnam grew 6.03 percent in the first quarter this year, much highest than that in the same period last year and three previous years also, announced the General Statistics Office. GDP growth rate was recorded at 5.9 percent, 4.75 percent, 4.89 percent and 5.06 percent in the same period from 2011 to 2014 respectively. Agro-forestry field posted a growth rate of 2,14 percent, industry-construction grew 8.35 percent and services 5.82 percent. These rates were 2.68 percent, 4.42 percent and 5.9 percent in the first quarter last year. Head of the office Nguyen Bich Lam said that GDP growth showed a positive recovery of the economy, especially in industrial production including manufacturing and processing. Economic experts predicted that the first quarter’ GDP growth rate of 6.03 percent would help Vietnam be able to get this year target of 6.2 percent. … [Read more...]

GSO: Q1 GDP highest over three years

VGP – Viet Nam’s Gross Domestic Product (GDP) in the first quarter of 2015 reached 6.03%, the highest figure recorded in the same period over the past three years (4.76% in 2013 and 5.06% in 2014), according to the General Statistics Office (GSO). Illustration photo The industry and construction sector witnessed the highest growth rate of 8.35%, accounting for 34.8% of the nation’s GDP. It was followed by the service sector with 5.82% and agriculture-forestry-aquaculture with 2.14%. Deputy Minister of Planning and Investment Dao Quang Thu asserted that the economy has developed and gained a number of positive signs in comparison with the same period some years ago, especially in terms of industry. He forecasted that the nation’s GDP in 2015 may reach 6.2% or higher. In the first quarter of the year, the State budget gained VND180,400 billion, equal to 20% of the estimates. By Thuy Dung … [Read more...]

Mining, manufacturing push GDP up 6% in Q1

The mining sector experienced a year-on-year growth of 6.7 per cent in the first quarter thanks to crude oil and coal output increases of 9.8 per cent and 3.2 per cent, respectively. — Photo laodong HA NOI (Biz Hub) — Viet Nam's gross domestic product (GDP) edged up 6.03 per cent in the first quarter of this year on the strength of "effective contributions" from mining and manufacturing industries, the General Statistics Office (GSO) announced yesterday. GSO Director General Nguyen Bich Lam noted that the growth was higher than in corresponding periods in the preceding four years (2011- 14). The mining sector experienced a year-on-year growth of 6.7 per cent in the first quarter thanks to crude oil and coal output increases of 9.8 per cent and 3.2 per cent, respectively. The manufacturing industry grew by 9.51 per cent on-year during the same period, with significant contributions from several products including mobile phones, cars, televisions and animal feed. The … [Read more...]

GDP likely to grow by 5.5-5.6 percent in Q1: official

Vietnam’s gross domestic product (GDP) is likely to expand by 5.5-5.6 percent in the first quarter, much higher than growth seen in same period last year, Deputy Minister of Planning and Investment Dao Quang Thu forecast, though the General Statistics Office’s official figure has not been released. The 2015 GDP growth target of 6.2 percent will be achieved if such a trend is maintained throughout the year, Thu said at a meeting reviewing the socio-economic context in Hanoi on March 25. The March industrial production index rose by 25.8 percent from the previous month and by 9.1 percent from a year earlier, according to the Ministry of Industry and Trade. A number of products recorded substantial growth from Q1 of 2014 including mobile phones (up by over 100 percent), automobiles (52.6 percent) and footwear (up 16.3 percent). Meanwhile, export revenue in Q1 reached 35.7 billion USD, climbing 6.9 percent from 2014. Some commodities saw observable shipment increases, … [Read more...]

Vietnam’s growth holds above 6 pct aided by gains in manufacturing

A man on a bicycle rides past the State Bank of Vietnam in Hanoi, Photo credit: Bloomberg Vietnam’s growth held above 6 percent in the first quarter as manufacturing supported an economy that’s still grappling with an overhang of bad debt. Gross domestic product rose 6.03 percent in the first three months from the same period a year earlier, the General Statistics Office said in a release in Hanoi Thursday. That compares with a previously reported 6.96 percent pace in the last quarter of 2014 and the median estimate of 5.7 percent in a Bloomberg survey of eight economists. Vietnam is trying to quicken a state share-sale program that began in the 1990s, as the government seeks to spur economic growth to a four-year high of 6.2 percent this year. Prime Minister Nguyen Tan Dung has also asked banks to lower borrowing costs to aid businesses and bolster expansion. "Growth is supported by strong increase in industrial production," Tran Dinh Thien, director of the Vietnam … [Read more...]

Car imports rise 86% over last year

Vietnam spent US$133 million on importing 5,493 completely built-up (CBU) cars last month, an increase of 86% in quantity and 160% in value compared in the same month last year, according to the General Statistics Office. The figure, however, was only half that of January, when Vietnamese imported 9,596 cars valued at US$185.7 million. The fall was attributed to the long Tet (Lunar New Year) holiday. However, car dealers predict that the car-import market is still on track to keep growing. In the first two months of this year, India was the biggest exporter to Vietnam with 4,363 units, equivalent to US$25million, followed by the Republic of Korea, China and Thailand, respectively. The total number of imported cars in Vietnam by last December 15 was 66,025, nearly double that of 2013, which recorded 35,125 cars. Many dealers believe car imports will keep rising as Vietnam reduces car-import tax to 0% by 2018 under the ASEAN Trade in Goods Agreement (ATIGA). Vietnam will cut … [Read more...]

Car imports rise 86 percent over last year

The total number of imported cars in Vietnam as of December 15 last year was 66,025, nearly double that of 2013, which recorded 35,125 cars (Photo: baohaiquan) Vietnam spent 133 million USD on importing 5,493 completely built-up (CBU) cars last month, an increase of 86 percent in quantity and 160 percent in value compared in the same month last year, according to the General Statistics Office. The figure, however, was only half that of January, when Vietnamese imported 9,596 cars valued at 185.7 million USD. The fall was attributed to the long Tet (Lunar New Year) holiday. However, car dealers predict that the car-import market is still on track to keep growing. In the first two months of this year, India was the biggest exporter to Vietnam with 4,363 units, equivalent to 25million USD, followed by the Republic of Korea, China and Thailand, respectively. The total number of imported cars in Vietnam by last December 15 was 66,025, nearly double that of 2013, which recorded … [Read more...]

Consumer prices rise 0.15% in March

NDO - The consumer price index (CPI) rebounded in March, rising by 0.15% against February after falling for four consecutive months, the General Statistics Office (GSO) has reported. Compared with a year earlier, consumer prices rose 0.93%, a pick-up from the inflation rate of 0.34% in February. The rally in March CPI was driven by a 0.36% increase in the prices of food, foodstuff and dining services, which have a large weight on the basket of goods used to calculate the CPI. The group of housing utilities and building materials also rose 0.16% against the previous month while entertainment and tourism services posted an increase of 0.18%. Deputy head of the GSO’s price statistics department Do Thi Ngoc attributed higher food prices to lingering impacts of the Lunar New Year or Tet, adding that the opening of traditional festivals after Tet contributed to increased costs of tourism and eating out. On the other hand, transport costs fell 0.31% thanks to lower fuel … [Read more...]

World Bank launches new MapVietnam

Organisations and individuals can now easily access socio-economic data at provincial and district levels in both English and Vietnamese at the new website www.worldbank.org/mapvietnam/, launched by the World Bank on March 20. The site aims to provide useful information for policymakers, researchers, journalists and other citizens. However, people are required to cite the source as the World Bank. In the past, people had to pay fees to get the data, said Tran Kim Chi from the World Bank. The maps illustrate Vietnam's diversity, which can be lost in aggregate statistics, according to the World Bank. Most of the information is based on the 2009 National Population and Housing Census conducted by the General Statistics Office of Vietnam. … [Read more...]

Vietnam – Central Hub of ASEAN for Electronics Industry

The world’s leading electronics companies have strongly invested in the construction of manufacturing facilities in Vietnam, offering opportunities for domestic businesses to strengthen cooperation and participate in the global value chain. In the past, foreign investment capital into Vietnam’s electronics industry reached over US$10 billion with great projects of Samsung, Foxconn, LG, Panasonic and Intel, becoming an attractive destination for the world electronics companies. In 2013 the electronics industry’s export turnover reached about US$32.2 billion, up 57 percent year-on-year and ranked first among Vietnam’s export sectors, according to the General Statistics Office (GSO). Vietnam’s electronics industry has basically met domestic demand for consumer products and exported products to nearly 50 countries in the region and the world, expecting export turnover in electronics industry to reach US$40 billion by 2017. Mr Vu Huy Hoang, Minister of … [Read more...]

What Is the Most Effective Investment Channel in 2015?

Among three traditional investment channels of gold, real estate and securities, investment in gold remains less profitable than other areas because the gold price of Vietnam and of the world has not shown signs of recovery. Therefore, the only remaining real estate and the stock are still in the game. But, which investment channel will be most profitable in 2015 is still a question for both investors and professionals now. Gold market and foreign currencies bleak At the seminar on the world's economy and the Vietnamese economy in 2014 and prospects in 2015, organised by Vietnam Prosperity Bank (VP Bank), many participants had analysis on current investment channels regarding gold and savings, real estate, and securities; some of ideas draw great attention of the investors. According to the representatives of the VP Bank Securities (VPBS), the price of gold has declined sharply during the recent time. This proves that gold is losing its appeal to investors. In the third quarter, … [Read more...]

March consumer price index to rise slightly: GSO Head

A recent rise in fuel prices and the upcoming adjustment of electricity costs will lead to a slight increase in March’s consumer price index (CPI), Head of the General Statistics Office Nguyen Bich Lam revealed to the Vietnam News Agency. The April index and those of the following months will reflect the price increases more definitively, Lam said. According to him, the three consecutive decreases of petrol prices in late 2014 and January 2015 caused an 8.2 percent reduction in transportation service rates in the first two months of the year, which contributed to a fall in the CPI. However, it is difficult to predict if inflation will be controlled at a low level this year, as inflation depends on a balance between supply and demand, the prices of import products, regional and world political stability and currency exchange rates, he said. Low CPI serves as an indicator for the Government to adjust the prices of necessities like electricity, school tuition and health … [Read more...]

Businesses Proactive in Integration and Economic Restructuring

1. Integration and economic restructuring Vietnam had formal diplomatic relations with 175 countries and trade relations with 200 countries and territories in the world as of 2014. The country has established strategic partnerships with 13 countries, field-based strategic partnerships with two countries, and comprehensive strategic partnerships with 11 countries. Currently, Vietnam has signed over 90 bilateral trade agreements, nearly 60 agreements on investment encouragement and protection and 54 double-tax avoidance agreements with partners worldwide. A series of other agreements are expected to take effect or to be concluded in 2015, including the formation of the ASEAN Economic Community (AEC), the Regional Comprehensive Economic Partnership (RCEP) between 10-member ASEAN with six partners, FTA with the European Union (EU) and the Trans-Pacific Partnership (TPP) Agreement. Besides, tariffs are being further slashed as committed to the World Trade Organisation (WTO). With the … [Read more...]

Banks announce further interest rate cuts

Resuming operations after Tet, many commercial banks are continuing to cut deposit interest rates, owing to good liquidity and low inflation. A customer takes out a bank loan. Commercial banks are continuing to cut deposit interest rates due to high liquidity and low inflation. Agribank cut annual rates last week for some terms by 0.2 to 0.4 percentage points. Accordingly, the highest rate applied for deposits of more than 18 months in the bank is 6.3 per cent yearly, down 0.2 percentage points from the previous rate. Deposits with 4 to 6 month terms and six to 12 month terms have also been reduced by 0.3 and 0.4 percentage points to 5.3 and 5.4 per cent, respectively. Eximbank also posted a new deposit rate of 6.1 per cent per year last week for 12-month term deposits, reflecting a significant drop of 0.28 percentage points. The bank's six to 11-month term deposit rates also fell 0.1 to 0.18 percentage points a year and the one-month term deposit rate slipped marginally by 0.08 … [Read more...]