[Vnbiz] Vietnam's position on economic issues

[Craig Stevenson]

Hoanh:

I am afraid it isn't as easy as going with a Vietnamese friend, even a
"connected" friend.  The trading has frozen, people are holding, waiting and
seeing and it seems the government is doing what they can to enforce a band
near SBV rates, which no one wants to trade at, am sure Tom, Dick and Harry
are doing back-back-room deals so that they don't freeze up the operations
of their businesses. Not sure what else to say, as I said in a previous
email.

Also, breaking news is that that SBV is adjusting interest rates upwards to
14% and allowing some banks to offer in a range up to 50% more to attract
dong deposits.  Saving, choking off consumption, trying to get a rein in on
inflation.

I wish them much luck in their endeavor.

As to food, the 50,000 dong plate of pork, I just ate there tonight, cost
25,000 when they made their backlit menu signage.  I paid 28,000 before Tet,
and now is 50,000.  Small shop.  The high volume bakery which provides bread
to all local shops, to all who know it on a very busy road, where the shop
is packed from morning until night, where they sell freshly made Chua Lua
next door, dropped its price per roll by 1000 dong to 2000 where it had
briefly, for a month and a half or so, been at 3000.  Hope that clears it
up.
Maybe not market, maybe flour is being subsidized, or perhaps, market, I do
believe wheat has come off its highs, not sure why, but is what has
happened.

Craig




On Tue, Jun 10, 2008 at 12:34 PM, Tran Dinh Hoanh <tdhoanh at gmail.com> wrote:

> [ Vietnam Business Forum ]
>
>
> Dear and Craig & CACC,
>
> Of course "dollar trading has frozen" at the official rate.  No one trades
> at that rate in the market (unless some foreign tourist sell his USD at a
> gold shop at the official rate, because he has no idead on what else he can
> do).
>
> But rest assured, brother, the dollar trade is alive and well.  At the
> "free market" rate, mind you.  (Note: "Free market rate" now would be more
> accurately called "black market rate").  However, since the market trade is
> no longer "free" and has become "black," you can't see it, Craig.  You're
> not in the loop.  But if you give 100 USD to any Vietnamese friend and ask
> him to sell it for you at the market price, he would be able to do it for
> you.  Even if he is not in the loop, he may know a friend who may know a
> friend who is in the market loop.  Please keep in mind, the entire trade was
> fully open and free several days ago. It can't disappear that fast.  It just
> goes underground temporarily, until the SBV turns a blind eye and allows it
> to become "free" again.
>
> I'm still digesting your info on food price.
>
> Have a great day!
>
> Hoanh
>
>
>
> --
> Tran Dinh Hoanh, Esq., LLB, JD
> Washington DC
>
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