Auto industry needs long-term development (04-09-2008) Workers at the Red River Factory in Nam Dinh Province. Viet Nam should have an open policy to produce 300,000 to 400,000 vehicles per year instead of the current annual production of 100,000, according to industry experts. — VNA/VNS Photo Hong Ky HA NOI — There must be a clear tax policy along with a long-term and comprehensive development strategy to encourage the country's automobile production, said Deputy Minister of Trade and Industry Do Huu Hao. The deputy minister made the comments at a conference on motorisation held recently by the Ministry of Trade and Industry and the Viet Nam Automobile Manufacturers Association (VAMA). At the meeting, auto manufacturers expressed their concerns about continuous changes in policies related to the automobile industry, especially tax policies. Toyota Viet Nam general director Nobuhiko Murakami said these changes in policies caused many difficulties for automobile … [Read more...] about Auto industry needs long-term development
Long term investment accounts
The Hanoi Times - Businesses are finding it harder to access medium and long term capital because banks have become more reluctant to provide long term loans. Linh, the owner of a newly established business, felt crushed when a bank turned down his 50 billion dong loan request because of the long term of three to four years.He wants to borrow 50 billion dong to import a production line to develop a project worth 100 billion dong. The credit officer of the bank which Linh contacted said that his project was feasible. Meanwhile, the bank does not have to worry about Linh's solvency, since he is prepared to pledge several hectares of land to the bank as security for the loan. With but a month before Linh must confirm the deal with his foreign partner, Linh approached some other banks, but they all turned him down. Being the owner of a newly set up business, with no experience in dealing with banks, Linh cannot understand why it is so difficult to borrow capital for just three or four … [Read more...] about Many banks saying ‘no’ to medium and long term loans
Donors dig deep into macro economy, long-term strategy By Thu Nguyet - The Saigon Times Daily KIEN GIANG - Issues about Vietnam's current macroeconomic conditions and long-term socio-economic development strategy captured strong interests from international donors at the mid-year informal Consultative Group Meeting for Vietnam on Wednesday. "The IMF welcomes the recent restoration of more stable macroeconomic conditions, but notes that the situation is still fragile and urges the Government to focus on consolidating macroeconomic stability to secure the continued recovery of the economy," said Ben Bingham, IMF senior resident representative. Stability for recovery According to International Monetary Fund (IMF), Vietnam's real GDP is expected to grow 6.5% this year with the recovery of private investment, consumption and exports, as well as a better balance of payment. However, the country now faces short-term instabilities in the foreign exchange market and inter-bank monetary … [Read more...] about Donors dig deep into macro economy, long-term strategy
It is now a ubiquitous phenomenon that enterprises manage to get loans in the U.S. dollar and sell them for Vietnam dong to capitalize on an interest margin. As entrepreneurial as they may be, businesses have tried their utmost to do whatever possible to slash costs and inflate profit provided that it does not infringe the law. And yet this practice is partly relieving the pressure on the foreign exchange. It comes as no surprise to learn that everybody is satisfied! However, everything has its own price. The role of State agencies is to anticipate all consequences of every economic trend so as to impose appropriate countermeasures. As the above-mentioned practice takes place within Vietnam's economy, it would exert a short-term effect should shortfalls in the balance of payments cannot be offset. To put it differently, this is an "intra-nation" form of carry trade, which makes profit out of interest rate margins in two countries. Normally, the foreign exchange in the two nations … [Read more...] about Short-Term Vs. Long-Term
VietNamNet Bridge - The sickly stock market has been testing stock investors' patience for many months. Other stock markets have recovered but when will Vietnam's stock market bounce back? PVGas could only sell 64 percent of the volume of shares it offered at the IPO (initial public offering) on November 17. The IPO average price of PVGas' share was 31,000 dong per share. Becoming shareholders of the enterprise which is leading Vietnam's gas industry, the key industry in Vietnam's national economy which decides the development of other industries such as power, fertilizer and steel, is really the dream of many investors. Andy Ho, Investment Director of VinaCapital, said that becoming the "owners" of state-owned general corporations is a golden opportunity which does not come regularly. However, contrary to previous thoughts, the shares were not selling like hot cakes. Of the 1057 investors who successfully bought the stakes, 12 institutions and 1045 individuals bought 4.244 … [Read more...] about Stock market: are there any opportunities for long term investments?