US dollar appreciates against Vietnam dong Hanoi (VNA) — Many commercial banks had the cost of the US dollar 1.1 percent higher against the dong at 19,310 VND immediately following the opening of business on Aug. 18.
The rise followed the State Bank of Vietnam's (SBV) announcement late Tuesday that it would add 400 VND, or almost 2.1 percent, to the inter bank rate as part of the effort to curb the country's trade deficit.
The decision – made after a month of non-stop increases in the value of the American currency on the black market – put the official rate for the dong at 18,932 VND to the dollar.
But the daily trading band of +/-3 percent allows banks to quote buying-selling prices within 19,100-19,500 VND per dollar.
Major dollar trading banks such as Vietcombank, Sacombank, Eximbank, Asia Commercial Bank had quoted prices at 19,245-19,310 VND per dollar from 19,100 VND on Tuesday.
"It's a positive move to balance supply and demand in the market," said Asia Commercial Bank deputy general director Nguyen Thanh Toai.
But the price for the US dollar at crowded FX vendors in Tran Nhan Tong and Ha Trung Streets, Hanoi , ranged from 19,400-19,500 VND, up 10,000 VND per 100 USD.
"The current price is quite high," said a senior Agribank Gold, Silver and Gemstone Co (AJC) official who asked to stay anonymous.
"But I think the dollar will not increase, or increase only slightly, in the next few days."
Numerous individuals bought the dollar from FX vendors in anticipation of further rises.
State Bank Governor Nguyen Van Giau responded to their speculation by saying: "There is always slight disorder after an adjustment but everything will be on the right track soon.
"The central bank prepared plans to deal with any issues before the depreciation."
The governor said the depreciation had been made to discourage imports, support exports and encourage people to buy more made-in-Vietnam products.
Foreign Exchange Management Department director Nguyen Quang Huy was adamant that commercial banks had ample the supplies of dollars and had not fallen short of demand as rumour would have it.
Vietcombank's deputy general director and former treasury director Pham Thanh Ha was just as sure of supply.
"FX is balanced," he said.
"It fell in short only in the first three months of the year."
The depreciation was the second this year and the fourth since December 2008 and means the central bank's daily reference exchange rate is down more than 11 percent in 20 months.
The State Bank adjusted the trading band from 2 percent to 3 percent in early November 2008 and the inter bank rate had risen 3 percent from 16,494 VND to16,989 VND by the end of December.
The daily trading band was widened to +/-5 percent from +/-3 percent as of March 24, 2009.
The exchange rate was 16,976 VND per dollar in September; 17,000 VND on October 10 and 17,014 VND on November 4.
The central bank depreciated the dong 3.25 percent on February 12 but narrowed the trading band to +/-3 percent from +/-5 percent.
The growing trade deficit is undermining efforts to draw the hoarded dollar into circulation and reduce the draining of foreign currency reserves.
General Statistics Office figures show that Vietnam 's trade deficit widened in July from 742 million USD in June to 1.15 billion USD.
The total deficit to the end of July was 7.4 billion USD, almost twice the figure for the first seven months of last year.Wheat demand leads to big increase in importsHanoi (VNA) — An increase in wheat demand within the domestic market has led to a sharp rise in wheat imports during the first seven months of the year, as global wheat prices continue to rise.
More than 1.4 million tonnes of wheat were imported during the first seven months of the year, which is equal to the import volume for 2009, reported the Ministry of Agriculture and Rural Development (MARD). In July, 230,000 tonnes of wheat was imported, worth 56 million USD.
Hoang Kim Giao, head of MARD's Animal Husbandry Department, said the inflation of maize prices earlier this year prompted animal feed producers to begin to buy wheat.
Phan Hong Lien, an analyst with the Vietnamese Market Analysis and Forecast Joint-stock Company (Agromonitor), said wheat cost 220 USD per tonne for imports from Turkey and Russia , while imported maize prices stood at 240-250 USD per tonne.
Nguyen Hong Van, deputy general director of the Vietnam Animal Husbandry Joint Stock Company, said his company followed the fluctuations of the world animal feed market and forecast that prices would continue to increase because of severe weather conditions in regions where the crop is produced.
The price of wheat, maize, cassava and rice were likely to increase sharply by the end of this year, he said. Therefore, the company had imported wheat to store when prices were lower earlier this year.
Pham Quang Dieu, Agromonitor's chief economist, said animal feed producers acted in an intelligent manner and exhibited their ability to capitalise on the global market.
The global price of wheat increased by 80 percent against last month's prices. Wheat now costs 280 USD per tonne, a 23-year high, reports Agromonitor.
Le Ba Lich, chairman of the Vietnam Animal Feed Association, said raw material imports for the animal feed processing industry increased sharply because domestic supplies were unable to meet the industry's demand.
In the first seven months of the year, the import value of raw materials for the animal feed industry saw a year-on-year increase of 30 percent that was worth 1.38 billion USD. This figure excludes the importation of wheat.Plastics industry eyes 1 billion USD clubHanoi (VNA) — The plastics industry is capable of achieving an export turnover of 1 billion USD this year, affirmed the Vietnam Plastics Association (VPA).
"This goal is possible because in the first seven months of this year, the industry earned more than 550 million USD from exporting plastic products," said Huynh Thi My, head of the VPA's Administrative Affairs Division.
My affirmed that if the target is met, total plastic export turnover would have increased by between 15 percent and 20 percent while export volume would have grown by about 20 percent.
The Industry and Trade Information Centre (VITIC) under the Ministry of Industry and Trade announced that in July alone, the plastics industry earned a turnover of 86.4 million USD, a year-on-year increase of 24.2 percent.
From the beginning of this year, VITIC said, monthly plastics export turnover had averaged 80 million USD per month.
Vietnamese plastic products are exported to over 70 countries and territories. Seven of which have recorded import turnovers of more than 1 million USDS, VITIC said.
Japan is now the largest importer of Vietnamese plastic products, accounting for 26.5 percent of Vietnam 's total plastic export volume. The country is followed by the US with 13.2 percent.
"In the past, the US was the biggest market for us. However, after the US Government imposed anti-dumping taxes on Vietnamese plastic packing products in 2009, exports rapidly declined," said My.
Other major markets include Germany and Cambodia which account for 8.1 percent and 6.8 percent of the country's total exports, respectively.
According to the VPA, about 50 percent of Vietnamese export plastic products are packing products, while 15 percent are household appliances and 35 percent includes products such as technological products or office supplies.
Vietnam has more than 2,000 plastic products manufacturers, of which 90 percent are small- and medium-sized companies. About 80 percent of them are based in HCMCity and its neighbouring provinces such as Dong Nai, Long An and Binh Duong.
Only 15 percent of manufacturers are based in the north and 5 percent are in the central region.
The industry's revenue in 2009 totalled 4.5 billion USD, a 500 million USD decrease compared with 2008 due to lower prices.Weaker dong sends shares down on both boursesHanoi (VNA) — The State Bank of Vietnam's Aug. 18 decision to depreciate the dong by another 2 percent accelerated the downward slide of shares on both national stock exchanges on the same day, with nearly 80 percent of codes shedding value despite an overnight rise on Wall Street.
The depreciation of the dong from 18,544 VND to 18,932 VND per US dollar was part of an effort to control the nation's trade deficit, the State Bank said.
In response, the VN-Index lost 1.73 percent to close at 455.49 points, while the value of trades on the HCM City Stock Exchange fell 7 percent to a one-month low of just 988 billion VND (51.2 million USD). Volume reached just 37 million shares.
Sacombank (STB), the most-active share on a volume of 1.87 million, closed down 1.25 percent, while Vinh Son-Song Hinh Hydropower (VSH) fell by 2.45 percent with 1.68 million traded.
On the HanoiStock Exchange, the HNX-Index declined by 2.62 percent to end the session at 132.62 points. Both volume and value dropped by 10 percent, with only 26 million shares traded, worth a combined 651 billion VND (33.7 million USD).
PetroVietnam Construction (PVX), the most-active stock nationwide with a volume of 4.86 million shares, declined by 3.8 percent, while Kim Long Securities Co (KLS) dropped by 3.23 percent on a volume of 1.5 million shares. Construction giant Vinaconex (VCG) also plunged by 2.43 percent with 800,000 shares traded.
Pomina Steel (POM) was among few codes to post a gain, hitting its ceiling price for the fourth straight day after announcing its plans to buy back 9 million shares.
Several export companies which stood to benefit from the dong depreciation also posted gains, including Long An Food Processing Export (LAF), Ben Tre Forestry and Seafood Import-Export (FBT) and Sao Vang Rubber (SRC).
PIV Petro Investment and Valuation Co (PIV) saw its first day of trading on Aug. 18, closing up nearly 27 percent from its reference price to 20,300 VND (1.05 USD) per share, with 36,000 shares changing hands.
Both stock exchanges opened in positive territory but exhausted share demand depressed most shares in the latter part of the trading day. More than 460 codes out of a total of 586 on both exchanges lost value.
Foreign investors were most immediately influenced by the currency depreciation, decreasing buys to a net of just 34 billion VND (1.8 million USD) on both bourses, a decrease of 60 percent from the previous session.
Tran Van Don, head of analysis department for Ha Thanh Securities Co, said the State Bank decision reignited investor worries about inflation.
"Many investors will likely shift investment from risky and low profitable securities to more attractive channels including foreign currency, gold or real estate," Don said.
In addition, a number of investors who had bought shares at depressed prices following last week's slump were active in selling out again on the trading session, contributing to the steep decline, he said.
Analysts of HCM City Securities Co said the higher exchange rate would put pressure on interest rates and the coupon rates of Government bonds.Display celebrates heroic HanoiHanoi (VNA) — An exhibition at the Ho Chi Minh Museum celebrates Hanoi 's heroic struggle for independence, peace and reunification last century.
On display are more than 200 documents, pictures and objects, many of them for the first time, designed to give visitors an insight into the country's struggles during President Ho Chi Minh's life and the subsequent years that saw military victory against the US and the reunification of the country.
The exhibition is divided into three parts.
The first features famous quotations, and maps and pictures of old Hanoi that strive to capture the ancient city's elegance, refinement and beauty during its struggle for independence from colonial France .
Many documents and pictures celebrate the fearless determination of the people of Hanoi to overcome their colonial oppressors.
The second part of the exhibition covers the period during the American war of destruction against North Vietnam . It bids to depict Hanoi as the spiritual capital of the country.
Hanoi established itself as a centre of socialist construction while helping the rest of the country fight US forces.
The last part of the exhibition portrays Hanoi as the City for Peace, the titled bestowed by UNESCO.
In 1975, Vietnam gained total independence. Hanoi then set about healing the wounds of war. Pictures reflect the capital's socio-economic development and urban renewal.
A visitor from Germany said the exhibition had helped him see the war from a different perspective.
"I often see documents and pictures of the war in Vietnam through information sources of the US , but this is the first time I have seen the country and its capital through documents in Vietnam ," he said.
The National Archives Centre, the Ho Chi Minh Museum, the Party Central Committee's Archival Office and the Hanoi Central Archives have organised the exhibition to mark Hanoi 's 1,000th year.
The exhibition will run until October.Supermodel becomes UNICEF Goodwill AmbassadorHanoi (VNA) – Supermodel Nguyen Vu Ha Anh has been appointed the Goodwill Ambassador for the United Nations Children’s Fund (UNICEP) Vietnam .
The UNICEP Vietnam told a press conference on August 18 that the supermodel will hold this position from August 2010 to July 2012.
According to UNICEP Vietnam Acting Chief Representative Jean Dupraz, Ha Anh has been selected for her great compassion and deep commitment to children and women as well as her ability to attract young people.
She is not only good at communication but also has a deep understanding about HIV/AIDS, which is currently a big challenge in Vietnam , he added.
In the immediate future, Ha Anh will focus on raising young people’s awareness of HIV/AIDS prevention and mobilising the masses to get involved in the struggle against discriminations against HIV/AIDS-affected children.
Her tasks will also include campaigning for traffic safety and the importance of helmet wearing for children as well as encouraging social and cultural changes relating to breast-feeding and gender selection for newborn babies.
Supermodel Ha Anh is the second Vietnamese person to hold the position after former football star Le Huynh Duc.Vietnam to hold Hong Kong-Nha Trang yacht raceHanoi (VNA) – The fourth Hong Kong-Nha Trang International Yacht Race is scheduled to take place from October 20-27, according to the Ministry of Culture, Sports and Tourism.
The race, which aims to promote Vietnam ’s sea and islands, is expected to attract between 200-250 domestic and foreign participants from Hong Kong , Singapore , the Philippines , Australia , New Zealand and several countries in Europe and America .
Officially launched in 2004, the biennial race is co-organised by Saigontoursit and the Hong Kong Royal Yacht Club.US Department presented with servicemen’s war objectsHanoi (VNA) – Deputy Minister of Defence Lt. Gen. Nguyen Chi Vinh has presented the US Department of Defence with three objects of the US servicemen during the Vietnam War.
The objects, which were handed over to the US Deputy Assistant Secretary of Defence Robert Scher during his visit to Vietnam , had been kept at the VietnamMilitaryHistoryMuseum .
The US side has also helped Vietnam in its efforts to find belongings of Vietnamese soldiers during the war.
Last year, the US side returned 56 war souvenirs to Vietnam ’s Ministry of National Defence.Vietnamese community in Russia help forest fire victimsMoscow (VNA) – The Vietnam Embassy in Russia on August 18 presented relief aid worth 885,000 roubles in kind and cash to victims of forest fire in Kolomna district, Moscow province.
Vietnam ’s Charge d’Affairs Pham Thi Ngoc Bich expressed her sympathy over the losses that Russian people have to suffer due to the recent forest fire, saying she hoped the victims will soon recover and return to their normal life.
Chairman of Kolomna district Nicolai Ottiasov thanked the Vietnamese community for their timely assistance to forest fire’s victims, which will enable them to overcome the fire consequences.
The relief included clothes and footwear for women and children.Vietnam hands over criminal to RoKHCMCity (VNA) – The police force in Ho Chi Minh City on August 18 handed over a 44-year-old Korean man, who was wanted by his country police, the RoK Police.
Representatives from the Republic of Korea (RoK)’s Consulate General in Ho Chi Minh expressed their thanks for assistance from Vietnam ’s policemen in arresting the fraud criminal.
Cha Je Kiy was arrested by police in Ho Chi Minh City one day earlier. According to the RoK police’s record, Cha and his accomplice Nam Kuk Heon swindled 139 people in the RoK for 678,000 USD in 2006.
After these frauds, both fled to Vietnam and established a business to conceal their identity.
In July 2009 due to visa expiry, they returned to the RoK and continued with their frauds before flying back to Vietnam in February 2010.
In April 2010, RoK Interpol sent an official letter to ask the Vietnamese Police to help arrest the criminals. Short after, Cha’s accomplice, Nam Kuk Heon, was also arrested in Ho Chi Minh City and handed over to the RoK police.
After fleeing to Vietnam , Cha was reported to live without marriage with a woman in Phuoc Long A ward, district 9 of HCMCity and have a four-year-old child. He always changed his residence in HCMCity ’s districts 2, 4 and 9 to avoid the police’s watch.VN, Japan enhance cooperation in combating crimesHanoi (VNA) – Vietnam and Japan should further enhance joint coordination in combating trans-national, drug trafficking and high tech crimes, said Minister of Public Security Le Hong Anh.
Minister Anh made the statement while receiving visiting Chairman of Japan’s National Commission on Public Safety (NCPA) Hiroshi Nakai in Hanoi on August 18.
The friendly cooperation between Vietnam and Japan has been expanded in various fields under the spirit of the strategic partnership that was defined by the two countries’ senior leaders, he said.
He confirmed that the collaboration between Vietnam ’s Ministry of Public Security and the NCPA and the National Police Agency of Japan in fighting transnational crimes has recorded certain results.
Nakai affirmed that the discussed orientations for cooperation would be a foundation for the implementation in the future.
He expressed his belief that the delegation’s visit would make important contributions to consolidating the special friendship between Japan and Vietnam.Czech culture to be promoted in HanoiHanoi (VNA) – The HanoiChildrenPalace will join the Prague Arts Troupe from the CzechRepublic to host a series of events to mark the 1,000 th anniversary of Thang Long-Hanoi.
The ten-day programme which will last through Oct. 10 will include a painting exhibition, a water puppetry, a concert and a Czech traditional gastronomic festival.
Vice Director of the Palace Le Quang Tuan expressed the hope that following the programme, his palace would cooperate with its Czech counterparts to organise exchanges between the two countries’ children to enhance mutual understanding and assistance.
The Czech friends have helped built the palace which has become a major centre for cultural and sports activities for Hanoian children.GMS meeting to discuss regional challengesHanoi (VNA) - The upcoming 16th Great Mekong Subregion (GMS) Ministerial Meeting scheduled for August 19-20 in Hanoi will focus discussions on challenges faced by the subregion in the next decade, said a senior official from the Asian Development Bank (ADB).
Granting an interview to Vietnam News Agency, Kunio Senda, Director General of the ADB’s Southeast Asia Department, said the challenges are transforming the GMS transport corridors into genuine economic corridors and enabling the GMS to tap more fully into the opportunities that the current economic resurgence and dynamism in Asia offers.
The critical issues include how to effectively link the GMS with India and the rest of South Asia, in a similar manner that it is now benefiting from its increasing links with China, a GMS member, in terms of increased exports, supply of manufactured goods and FDI; and how to strengthen complementarities and synergies with other regional cooperation initiatives, particularly ASEAN and ASEAN+3, he said.
Another challenge faced by the GMS is to address the risks of global warming and climate change. “It is important to integrate climate change adaptation and mitigation measures in both national and subsregional development efforts. Among the possible directions of efforts in this regard are, for instance, the further development of railway links as substitute to fossil fuel-based transport modes and the development of renewable energy sources,” he said.
The GMS countries must effectively address other risks usually associated with increased connectivity, including communicable diseases, human trafficking and transnational crime, and biodiversity losses, he added.
In addition, the subregion also faces challenges posed by its changing demographics and increased urbanisation, including human resource development, education, labour reforms, migration and protection of migrant workers.
The ADB official also dealt with the GMS’s increased mobilisation of private investments for its economic cooperation programme, including public-private partnerships.
He expressed the confidence in the GMS’s settlement of challenges with assistance from the ADB, saying that despite the challenges faced by the GMS region in the next decade, ADB is optimistic that the GMS Programme would continue to move forward and will be better equipped to deal with a rapidly changing regional and global landscape under its new Strategic Framework (SF) for the 2012-2022 GMS Programme.
“The maturity we have gained as a cooperation programme, along with a well thought of new strategic framework, will ensure that we can effectively help address the challenges and expand the frontiers of out cooperation among the six GMS countries,” he affirmed.
ADB will endeavour to address and maintain its relevance vis-à-vis emerging trends and issues, and continue to help the Mekong countries achieve their vision of an integrated, prosperous and harmonious subregion, even in the midst if a rapidly changing and challenging regional and global landscape, he added.
As a regional institution, ADB will continue to coordinate with key GMS stakeholders and particularly with the Mekong River Commission (MRC) to promote efforts to ensure the sustainable development of the Mekong subregion.
According to Kunio Senga, transport improvement leads to trade improvement and eventually translating into improved quality of life of people in the GMS. Definitely, the transformation of transport corridors into full-pledged economic corridors will require improved transport and trade facilitation in the subregion.
“The countries are now working intently on a programme of action for transport and trade facilitation, which aims to expand and deepen exchange of traffic rights, improve border procedures and coordinated border management, and strengthen sanitary regime for GMS trade,” he added.
The ADB official stressed that the GMS Programme recognises the key role of building strategic alliances and partnerships with other international organisations, particularly with ASEAN and the MRC.
As the GMS Programme is the principal facilitating regional cooperation mechanism for the subregion, it needs to work more to avoid duplication and ensure complementarities with other subregional cooperation initiatives that also operate in two or more GMS countries such as the Ayeyawaddy-Chao Phrya-Mekong Economic Cooperation Strategy (ACMECS), the ASEAN-Mekong Basin Development Cooperation (AMBDC) and the Cambodia-Laos-Vietnam (CLV) Development Triangle.
The GMS comprises China and five Southeast Asian countries, namely Cambodia , Laos , Myanmar , Thailand and Vietnam.-EnditemLandslide deaths trigger new wet-season alarmsHanoi (VNA) -- Prolonged heavy rain triggered a landslide that has killed three people in northern Quang Ninh province.
The deaths raised safety fears for thousands of residents in the flood and landslide-prone northern mountainous provinces of Ha Giang, Lao Cai and Yen Bai as the wet season approaches.
Seventeen people were killed or presumed dead after floods and landslides in Ha Giang province in the first seven months of this year. Forty-two houses were also destroyed.
The province's Xin Man, Yen Minh, Bac Quang and Quang Binh districts were particularly prone to floods and landslides, officials said.
To Thanh Lai, chairman of Yen Thanh Commune People's Committee in Quang Binh district, warned that landslides were expected at numerous locations along Highway 279.
Floods and landslides killed 238 people in Lao Cai province between 2000 and 2008, swept away 1,200 houses and destroyed more than 10,000ha of paddy fields.
Le Thanh Du, the provincial Agriculture and Rural Development deputy director, said: "Floods and landslides have occurred more frequently and been more serious in recent years," adding that thousands of residents were put at risk annually.
He blamed climate change for the unpredictable weather.
"In previous years, flash floods and landslides were often caused by prolonged heavy rain of between 200-300mm, but this year, floods and landslides have taken place in areas where the rainfall has measured just 8-10mm," he said.
"As a result, local authorities have been carrying out more checks in high-risk areas to ensure response measures are prompt. They have also relocated more than 5,000 people from areas prone to flash floods and landslides," Du said.
Le Thanh Hai, deputy director of the National Hydro-meteorological Forecasting Centre, said it was difficult to predict exactly where and when landslides and flash-floods would take place.
"The lack of flood-forecasting technology and limited training hinder our work. Reliable warnings are based on many factors, not just on the likelihood of rain," he said.
He said that flash floods and landslides often happened after spells of drought, particularly in mountainous areas and near river mouths.
"When hearing strange noises and finding that the water level in rivers has dropped suddenly or risen dramatically, people should move to safe areas," he said.
Hai added that heavy rains were expected in northern mountainous regions in the next few days.Hanoi police force receives top honourHanoi (VNA) -- National Assembly chairman Nguyen Phu Trong awarded the capital's police force with the Order of the Gold Star yesterday to honour the 65th anniversary of its establishment.
The chairman praised the force's efforts and achievements but said the police needed to further develop their tradition as Hero of the People's Armed forces, build a strong party committee and become skilful and transparent.
They must also deploy measures to both mobilise and unite with the people, he said. The chairman emphasised the importance of comprehensive ideological renewal and skills within the force as well as carefully studying the behaviour of criminals to make the fight against them more effective.
The force needed to defeat any plots by hostile forces and prevent terrorist acts, or disorders, he said.
Hanoi Police director Nguyen Duc Nhanh said the force had ceaselessly developed and improved during the past 65 years as the core in the defence of the country's security and social order.
The force had fought courageously to defeat the plots of the French colonialists and had made a considerable contribution to Vietnam 's liberation.
The force had actively consulted authorities in economic management, corruption and the fighting against smuggling since the introduction of the renewal process and international economic integration.
The force was granted the title Hero of the People's Armed Forces in 2004.
