WTO adjudicates lawsuit between Viet Nam and US

The World Trade Organisation's Dispute Settlement Body in Geneva, Switzerland yesterday began adjudicating the case involving Viet Nam's suit against the US for imposing anti-dumping duties on frozen shrimp imported from Viet Nam.

During the trial's first day the panel listened to both sides' opening arguments.

The Vietnamese delegation provided evidence defending the legitimate interests of Vietnamese shrimp exporters. The US legal team presented evidence defending the implementation of anti-dumping duties.

Good news lifts indexes

Positive news on the foreign exchange market allowed the VN-Index to increase by 0.65 per cent today, to close at 445.05 points.

Media reports that were published late yesterday said the State Bank was considering injecting US dollars into commercial banks to help stabilise the foreign exchange market and meet export demand.

The Dow Jones rallied yesterday after news spread that the US Fed is considering issuing more stimulus funds.

Blue chips rallied, including Bao Viet Holdings (BVH), up 2 per cent; Hoang Anh Gia Lai (HAG), 1 per cent; Kinh Bac Corp (KBC), 0.4 per cent each; and Phu My Fertiliser (DPM), 0.3 per cent.

Banking stocks closed on a positive note, with Vietcombank (VCB), Sacombank (STB) and Eximbank (EIB) rising 0.1 per cent each, while VietinBank (CTG) closed unchanged.

The number of listed stocks matching their ceiling prices rose to 8 from 1 yesterday.

The trading volume on the southern bourse fell to 21.9 million shares for a value of VND514 billion (US$26.4 million).

The HNX-Index on the Ha Noi Stock Exchange bounced back 0.24 per cent to close at 112.55 points.

About 142 of the 317 listed stocks on the northern market rose while 131 other declined.

More than 24.8 million shares changed hands during the session, posting a value of VND488.9 billion ($25.1 million).

Two new low-income housing projects slated for construction

The Ha Noi's People Committee ordered two construction companies - Thu Do Investment and Trading Joint Stock Company and Thai Binh Finance Investment Joint Stock Company - to build low-income housing projects.

Thu Do company will be responsible for building a 17,909-square-metre project located in Xuan Dinh Commune in Tu Liem District.

The complex will help the capital city meet its housing demand for low-income residents.

Thai Binh company has been assigned to build a 9,605-square low-income housing and resettlement complex in Hoang Mai District.

This month the Housing and Urban Development Corporation (HUD) also plans to build a low-income housing project that will have 4,000 apartments in Me Linh District.

Ha Noi will construct about 15,000 low-income apartments in accordance with the capital's 2010-15 construction plan.

As of date, there are about 3,856 apartments for low-income people being built in Ha Noi.

Floor prices set for tra fish exports

From the beginning of 2011, minimum export and procurement prices would be set for tra fish, excluding the US market, Duong Ngoc Minh, deputy chairman of the Viet Nam Association of Seafood Exporters and Producers (VASEP), said.

For other markets, a minimum export price of $2.8 per kilo would be set while breeders selling the fish would earn a minimum price of VND20,000 ($1) a kilo.

"The regulation on floor prices aims to bring the price of tra fish to its true value and ensure profits for both breeders and processors, "Minh said It would also help avoid unhealthy competition which leads to reduction in export prices and affects the quality of tra fish products, he said.

The purchase price of tra fish is now VND18,500 ($0.9) per kilo and the average export price is $2.7 per kilo.

At Tuesday's meeting, VASEP also petitioned the Ministry of Agriculture and Rural Development to add tra fish to the list of products subject to conditional exports.

This would require processors to meet certain criteria to be able to export tra fish, including having an export contract for six months and more, and having their product quality registered and inspected. World demand for trafish is now increasing as the supply of China's tilapia and the Philippines' tuna have been declining due to inclement weather. However, domestic output of tra fish has been low because about 30 per cent of breeders have abandoned their ponds this year after suffering severe losses from falling prices. In this situation, seafood processors have said they are likely to face a shortage of raw materials next year.

They estimate tra fish output at 1 million tonnes next year while they have a total processing capacity of more than 2 million tonnes.

Southern commodities exchange to open soon

The Ministry of Industry and Trade has issued a licence to the HCM City-based Trieu Phong Commodity Exchange (TPE), which is expected to open early next year.

The first such exchange licensed in the country, it will initially trade in steel, rubber, and coffee, according to its general director, Nguyen Duy Phuong.

It will also provide an additional financial tool for producers and traders to protect themselves against price fluctuation risks. Futures contracts, swaps, and forward trading will all be available.

The exchange will help boost the trademarks of participating members, including in foreign markets, disseminate global market information, and act as a clearing and settlement intermediate. Also yesterday Trieu Phong Commodity Exchange inked several agreements.

Under separate contracts, the Bank for Investment and Development of Viet Nam and Techcombank agreed to provide services like payment and loans. SME Securities Company will consult TPE in issuing shares and listing on one of Viet Nam's stock exchanges, and in developing derivatives.

It also entered into a memorandum of understanding with the Singapore-based CWT Commodities, which specialises in handling and storage of ferrous and non-ferrous metals and other commodities.

The HCM City-based Institution of Information and Business Research agreed to become a partner.

The exchange's trading system will be supplied by a British company which has provided comprehensive solutions to around 20 exchanges worldwide.

TPE has a charter capital of VND150 billion (US$7.5 million) and the figure is expected to double in 2012.

It hopes to become a limited liability company firm in 2014.

Source: VNS