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HCM City told to get tough on prices
The Secretary of the HCM City Party Committee, Le Thanh Hai, asked the city to continue the policy of providing no-interest loans for stabilising prices of essential goods.
District authorities were told to prevent any violation of price management regulations and enhance measures to fight speculation and hoarding of goods that may lead to false scarcity of goods in the local market.
Le Hoang Quan, chairman of HCM City People's Committee, told the director of the State Bank branch in HCM City to inform the public of the State's policies on monetary stabilisation that is expected to help the city keep its socio-economic development on the right track.
The HCM City Department of Industry and Trade was asked to coordinate with the city's Market Watch Division, the Customs Bureau, the city's Police force and district authorities to prevent speculation and/or smuggling of gold and foreign currencies.
They were also told to stop the spread of rumours that may cause uncertainty in the minds of residents.
During a meeting with city authorities on Tuesday, the director of the State Bank branch in HCM City, Ho Huu Hanh, affirmed that the Government had no plan to further devalue the Vietnamese dong and that the rumour about a possible change in the Vietnamese currency was "groundless".
Nguyen Thi Hong, deputy chairwoman of the HCM City People's Committee, said the city will boost supply of eight essential goods – rice, sugar, cooking oil, domestic fowl and cattle meat, eggs, processed food and vegetables and fruits – in city markets.
Hong said companies that joined the city's price stabilisation programme must ensure sufficient supply of goods between now and the traditional Tet (Lunar New Year) Festival and sell vegetable and fruits at prices 10 per cent lower than market prices.
The volume of goods in reserve for the price stabilisation programme will account for 30 per cent to 40 per cent of the city residents' demand and can dominate the market during the festival season, said Hong.
She said city market management forces have been coordinating with supermarkets to supervise and monitor customers who are buying sugar in big quantities at supermarkets.
Any speculation regarding sugar will be punished, Hong said.
The monitoring of sugar buyers began last weekend when Co-op Mart reported speculatory buying as supermarkets were selling the commodity at VND4,000 to VND5,000 per kilogramme lower than market prices.
She said sugar was one of the eight essential goods under the city's Price Stabilisation Programme and no shortage of the commodity would be acceptable.
Shares retreat on low volume
Prices on both of Viet Nam's stock exchanges fell this morning as market volume and value remained sluggish.
In HCM City, the VN-Index declined more than 1 per cent to close at 446.69.
Just 26.4 million shares worth VND629.5 billion (US$31.5 million) were exchanged.
Decliners outnumbered advancers 196-30 as most blue chips tumbled.
Of the ten largest capitalised shares, Masan Group (MSN) fell 3.2 per cent; Phu My Fertiliser (DPM) and industrial conglomerate Hoa Phat Group (HPG) fell 2.3 per cent; software FPT Corp (FPT) slid 2 per cent; Ocean Group (OGC) fell 1.6 per cent; and Eximbank (EIB) closed off 1.4 per cent.
Insurer Bao Viet Holding (BVH) up 0.8 per cent; Vietinbank (CTG) up 0.5 per cent and property developer Vincom (VIC) up 1.4 per cent were among few shares that rose.
Saigon Securities Inc (SSI) - the only listing to have more than 1 million shares exchanged - was the most active stock but fell 0.8 per cent to close at just VND23,900 ($0.12).
In Ha Noi, the HNX-Index lost 2.23 per cent of its value to close at 104.79; number of losers outnumber gainers more than five to one.
But market volume rose 15 per cent to 26 million shares worth more than VND463.1 billion ($23.1 million).
Property developer Sacomreal (SCR) dropped to its floor price for the second day since it listed its shares three days ago. It closed at VND23,700 per share ($1.18) with 1.76 million changing hands - the second most active trading on the northern bourse.
PetroVietnam Construction (PVX) continued to be the most heavily-traded shares nation-wide, with 2.15 million shares exchanged.
PVX closed off 1.4 per cent to close at VND20,600 ($1.03).
Refinery signs four contracts for distribution
The Binh Son Refining and Petrochemical Co Ltd, the operator of Dung Quat Oil Refinery, signed contracts on Tuesday in Ha Noi with four local partners to distribute the refinery's petroleum products next year.
Under the contracts, Dung Quat will supply a combined volume of 4.7 million cu.m of petrol products, including Mogas 92, Mogas 95, diesel, Jet A1 plane fuel and fuel oil (FO).
Binh Son Co will provide 2 million cu.m for the Viet Nam National Petroleum Corporation (Petrolimex), 1.5 million cu.m for the PetroVietnam Oil Corporation, 1 million cu.m for the Petec Trading and Investment Corporation and 200,000cu.m for the Viet Nam Air Petrol Company.
Binh Son Co was also in negotiation with other distributors about the terms and conditions of next year contracts and it was expected to reach agreement with them by the end of this month. The deals are intended to satisfy local fuel demands with products from Dung Quat, despite prices being set at the same rate as imported oil products.
Dung Quat was put into operation in February last year and is running at full capacity. The refinery has churned out 7.82 million cu.m of various kinds of petrol products so far.
It is estimated that the refinery will produce 5.8 million cu.m of petrol products next year. The factory will halt operation next July and August for scheduled maintenance.
The agreements reached with local distributors would help the refinery map out future production and distribution plans, Binh Son Co said.
Ha Noi to hold property seminar
An international seminar on the real estate market will take place in Ha Noi from November 26-28, an official from the Ministry of Construction said on Tuesday at a press conference.
Nguyen Tran Nam, deputy minister of construction, said the seminar would focus on issues affecting the real estate industry such as the world financial crisis, overseas development assistance and other sources of capital.
The seminar would also discuss urban projects, creation of a land fund, sustainable development in the property market and Government supervision of prices, Nam said.
"Viet Nam's real estate market has developed markedly in recent years. It has a major influence on the econ-omy," Nam said. "However, the market lacks stability."
"The market lacks transparency, while prices are too high because of over-demand", he added.
"State managers and enterprises need more experience in managing and operating the market, which they can learn from developed countries," he said.
The seminar expects to attract 500 real estate experts from 10 countries, including China, Malaysia, Singapore, Australia, South Korea, Japan and New Zealand.
Meanwhile, the International Real Estate Expo 2010 will be held in Viet Nam.
The exhibition will have 100 pavilions displaying construction technologies and information on real estate firms from around the world.
The expo has been organised by the ministries Construction and Industry and Trade, in conjunction with the Viet Nam Real Estate Association, the forum of Asian construction industries and the central steering committee on housing policy and the real estate market.
Fair-competition laws promoted in ASEAN
Policy and laws to promote competition had made important contributions to economic development, promoted business efficiency and better protected consumer rights, said head of the Ministry of Industry and Trade's Competition Administration Department Bach Van Mung.
The dynamics of increasing interdependence and integration at a global and regional level meant that a legal framework to promote competition had become even more important to many economies, including those in ASEAN, Mung said yesterday, during a conference to promote the Handbook on Competition Policy and Law in ASEAN for Business.
The handbook, compiled by the ASEAN Experts Group on Competition, was launched on the sidelines of the 42nd ASEAN Economic Ministers' Meeting in Da Nang City in August.
Topics covered in the handbook include general matters of competition policy and law or sector regulations, monopolies, restrictive agreements, mergers and acquisitions and unfair competition.
The handbook provides necessary information relating to ASEAN member countries' specific legal regulations and laws on competition. It is expected to become a useful guide for small- and medium-sized businesses looking to establish a foothold in the ASEAN market.
The publication promoted the creation of a regional transparent and fair competition environment for businesses, while facilitating exchanges of skills and experiences in dealing with competition issues, said representative of ASEAN Secretary Board Thitapha Wattana-pruttinpaisan.
Consumption of steel to rise 8%
About 11.7 million tonnes of steel would be consumed in 2011 domestically, a year-on-year increase of 8 per cent, reported the Viet Nam Steel Association (VSA).
"The estimate is based on many factors including the country's gross domestic production, total steel production, import and export volume," said VSA chairman Pham Chi Cuong.
He noted that this figure did not include the country's export volume.
It added that this year the country's steel sector would likely sell 11 million tonnes of steel, and that the Vietnamese steel sector was exporting more steel to neighbouring countries including Cambodia and Laos.
Viet Nam on average exported 300,000 tonnes of steel each year. This year the association said the country would export 1 million tonnes, which would earn more than US$1 billion in revenue.
The VSA attributed the increase in exports to improved operations at Posco's new steel plant, which opened in Ba Ria-Vung Tau Province since October last year.
Posco is able to produce 1.2 million tonnes of steel per year, 40 per cent of the country's total export volume.
In another development, the VSA announced that steel prices on the domestic market continued to increase. Steel was currently priced between VND13.3 million (US$660) and VND14.15 million ($725) per tonne, excluding value added tax.
Source: VNS
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