[Vnbiz] VN Biz News

[Ho TV]

Some newer reports:

Economic turmoil rattles Viet government
It cancels an investment forum amid worries over inflation, stocks and
trade imbalance
By Roger Mitton, Vietnam Correspondent, Straits Times, March 8, 2008

HANOI - In an astonishing move, the ruling communist regime in Vietnam
has enforced the cancellation of a major conference next week on
investment in the country. Organisers of the 3rd annual Euromoney
Vietnam Investment Forum, scheduled to begin on Tuesday, said they had
no option but to comply with the government's request not to hold the
event.

Said Mr Paris Shepherd, the organiser's associate director for the
Asia-Pacific: 'Owing to a combination of pressing macro and
micro-economic concerns, the government of Vietnam has requested that
Euromoney postpone this year's Vietnam Investment Forum.'

Organisers say the conference will be rescheduled for September but
the cancellation is the latest sign that continuing economic
turbulence has rattled the government, which has appeared indecisive
and inconsistent in dealing with a raft of negative developments.

Since the year began, Hanoi has been hit by rampaging inflation, a
catastrophically soaring trade imbalance and a collapsing stock
market.

Cut, Full report:
http://www.viet-studies.info/kinhte/economic_turmoil_rattles_viet_gov.htm


Interest rate paradox puzzles depositors
15:18' 10/03/2008 (GMT+7)

VietNamNet Bridge – Depositors are confused by the fact that the
long-term interest rates are lower than short-term.

Short-term benefits
There are three groups of banks on the monetary market. The first one
offers the same 1%/month interest rate for all deposits, from one to
12 month terms. The second group applies the 1% interest rate for
1-6-month term deposits, and lower rates (0.95% at maximum) for longer
term deposits. The third group offers higher interest rates for bigger
deposits.

The common characteristic of the three groups is that banks offer
higher interest rates for shorter term capital. And this proves to be
contrary to the principle that higher interest rates should be offered
for longer term deposits in order to encourage people to provide long
term capital to the national economy.

Cut, Full Report: http://english.vietnamnet.vn/biz/2008/03/772649/


Which basket to put money in?
17:06' 11/03/2008 (GMT+7)

VietNamNet Bridge – 31.78% of 25,056 VietNamNet readers polled said
they inject money in gold, suggesting it's the most attractive
investment channel now for individual investors.

Stocks prove to be the second most attractive investment channel for
Vietnamese with 22.12% of readers declaring that they invest in
stocks. 19.48% of investors inject money in the real estate market,
while bank deposits, the traditional way of saving money for
Vietnamese people, ranks fourth (9.86%). Only 7.65% of VietNamNet
readers said that they buy dollars. Moreover, investors make
investment in the service sector (4.03%), production (3.39%) and other
sectors (1.68%).

Gold: the No 1 choice

Cut, Full Report: http://english.vietnamnet.vn/biz/2008/03/772869/


Vietnam Investors Conference Postponed
By Matt Steinglass, Hanoi, 11 March 2008, Voice of America (VOA)
	
Vietnam's financial markets have had a tumultuous year. The once
high-flying stock market has fallen more than 30 percent, since
January 1, and inflation has ballooned. A major investors' conference
was scheduled to start Tuesday in Hanoi ,but last week, the government
called it off. Matt Steinglass has more from Hanoi.

Cut, Full Report: http://www.voanews.com/english/2008-03-11-voa15.cfm


Electricity price will be raised as of July 1 as scheduled: MOIT
12:57' 11/03/2008 (GMT+7)

VietNamNet Bridge – Deputy Minister of Industry and Trade Do Huu Hao
said that the project on raising electricity prices is being drafted
by the Electricity of Vietnam which will be applied as of July 1, 2008
as previously scheduled.
...
The electricity price for production will be raised to VND917/kwh from
VND857/kwh, up by 7%. Meanwhile, the electricity prices for household
consumption will depend on the consumption levels.

Cut, Full Report: http://english.vietnamnet.vn/biz/2008/03/772808/


Vietnam warned by IMF
By Amy Kazmin in Bangkok, Financial Times (UK)
Published: March 10 2008 23:39 | Last updated: March 10 2008 23:39

The International Monetary Fund has warned Vietnam that its
fast-growing economy is overheating. It has advised Hanoi to adopt a
more flexible exchange rate regime and to tackle imprudent lending
practices by commercial banks, in order to help control inflation.

Cut, Full Report:
http://www.ft.com/cms/s/0/2733077c-eef5-11dc-97ec-0000779fd2ac.html