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Incham hosts workshop on Vietnam economic outlook
The event was joined by Indian officials in Vietnam, representatives of Incham’s members and foreign business associations in HCMC, foreign and domestic economic experts, and keynote guest speakers.
They included Victoria Kwakwa, the country director of the World Bank in Vietnam, Seck Yee Chung of Singapore-based Baker & McKenzie Co, and Tran Luu Quoc Vuong of the National Center for Socioeconomic Information and Forecasting.
Most experts and speakers shared their views of Vietnam’s long-term business outlook since there are still a lot of untapped potentials, but stressed that the prospects of short and mid-term would be brighter with more supports from policymakers.
Gold declines to VND32.8 million
The price of gold in Vietnam shrank by VND300,000 a tael (1.2 ounces) over the previous day on October 22 as global prices sank to three-week low.
Gold was bought at VND32.75 million and sold at above VND32.8 million as of 9 am local time at most gold shops.
Saigon Jewelry Company fixed the price at VND32.75 million for buying and VND32.82 million for selling.
Sacombank Jewelry Company bought the metal at VND32.77 million and sold at VND32.83 million.
Meanwhile, Hanoi-based Phu Quy Jewelry purchased SJC-brand gold at VND32.75 million and sold at VND32.85 million.
Gold was bought at VND32.73 million and sold at VND32.85 million at Bao Tin Minh Chau Jewelry.
Domestically, gold fetched VND600,000 a tael higher than global prices.
Trading on bullion market turned muted as investors were cautious about recent erratic movements of the metal.
On free market, dollars were bought at VND20,050 and sold at VND20,100, down VND70 per dollar over last morning.
Internationally, gold headed for its first weekly decline in six as a rebound in
the dollar eroded the metal’s appeal as a haven against debasement of the US dollar.
Gold for immediate delivery slumped $20.4 an ounce, or 1.5 percent, to close at $1.326.7 an ounce on the Comex in New York. Earlier, the metal fell to $1,317.1 an ounce.
In Asia, gold fluctuated around the closing price in New York this morning.
The US Dollar Index, which tracks the greenback’s strength against a basket of six major currencies, rose as much as 0.4 percent. The euro exchange rate against the greenback was at $1.39 a euro this morning, almost unchanged as of the previous day.
According to analysts, the US dollar recovered thanked to better than forecast data on the US labor market. A weekly report by the US Department of Labor showed that initial jobless claims for the week ended October 18 decreased by 23,000 to 452,000.
However, this positive report was not strong enough to curb speculation that the US Federal Reserve would take quantitative easing to boost economic growth.
SPDR Gold Trust, the largest exchange-traded fund backed by bullion, dumped another 0.9 metric tons yesterday, sending its holdings to 1,298.3 metric ton.
Crude oil futures for December delivery lost $1.98 a barrel, or 2.4 percent, to close at $80.56 a barrel.
This morning, crude oil recovered to above $81 a barrel.
Contract signed for Lao Cai plant
A US$16 million engineering, procurement and construction contract was signed yesterday between the Viet Nam - China Minerals and Metallurgy Co Ltd and Kunming Steel and Cast Iron Joint Stock Company (KISC) to build a cast iron and steel plant in the northern province of Lao Cai.
KISC will be responsible for planning, studying, designing, supplying equipment, construction and installation as well as guaranteeing the operation of the Lao Cai Cast Iron and Steel Plant which will be located in the Tang Loong Industrial Complex in Bao Thang District.
The signing ceremony marks the start of the project which is expected to cost in excess of $337 million.
Construction will be divided into two phases.
The first will start this year and is due for completion at the end of 2012. During this phase, two factories with a capacity of producing of 500,000 tonnes of cast iron and 5 an equal amount of pig iron per year will be constructed.
The second phase will run from 2012 to 2015 in which time a production line will be completed capable of producing 500,000 tonnes of iron per year. This will be increased to 1 million tonnes in the future.
Quy Xa, the second largest iron mine in Viet Nam with reserves of 122 million tonnes, will supply the plant.
The plant is a joint venture between the Viet Nam Steel Corporation, the Lao Cai Mineral Company and KISC with respective investments of 45 per cent, 10 per cent and 45 per cent.
It will play an important role in the local economy and is expected to double local gross domestic production while creating 2,000 jobs.
Highland province projects seek investors
The Central Highland province of Lam Dong has unveiled a list of 26 projects that require investment by 2020.
Six of them – the International University Village, Prenn Lake Tourism Zone, Dau Giay-Lien Khuong Expressway, Da LaÏt-Thap Cham Railway, Lien Khuong New Urban area, and Dan Kia Tourism Zone – are considered to be key and require a total of US$8.3 billion-$8.8 billion.
The list also comprises nine industrial projects that need $3.1 billion and five transport works requiring more than $65 million.
Investment is also required to develop a new urban area and for projects in the agricultural, tourism, services and trading sectors.
The province would create investor-friendly conditions within the Government's incentive framework, Huynh Duc Hoa, chairman of the provincial People's Committee, said.
Meanwhile, authorities are reviewing several tourism and real-estate projects to assess their rate of progress and resolve difficulties faced by investors.
They would withdraw licences if investors were found not to fulfill their commitments, Hoa warned.
In the last six years, 170 projects have had their licences cancelled, including 40 in the forestry sector.
Market stalls on stagnant trades
The VN-Index closed essentially unchanged yesterday at 445.21 points, while the value of trades on the HCM City Stock Exchange sank to just VND662.9 billion (US$34 million), on a volume of 27.5 million shares.
A few major shares managed to advance, including insurer Bao Viet Holdings (BVH) and real estate developer Hoang Anh Gia Lai (HAG), which closed up around 1 per cent each, and developer Hoa Phat Group (HPG) and PetroVietnam Finance (PVF), each up about 0.5 per cent, largely due to buys by foreign investors.
"Foreign investors seem to be the sole support for the markets currently, when domestic investors are staying out," said Ha Noi-based broker Nguyen Thanh Phong. Foreign investors bought a net of 1.6 million shares yesterday on the HCM City market.
Meanwhile, Phong noted, local investors had turned to other investment channels, such as trading in gold or US dollars, which seemed to promise stronger profits.
The stock market slowdown had been exacerbated by regulators who had not allowed the introduction of new tools to promote the circulation of capital on the stock markets, he said.
On the Ha Noi Stock Exchange yesterday, the HNX-Index lost 1.09 per cent of its value to close at 111.32 points. Up to 213 out of 345 listed stocks on the northern market posted declines, including traditional market leaders PetroVietnam Insurance (PVI), down 2.3 per cent, and Kim Long Securities Co (KLS), down 1.6 per cent.
The value of trades slowed to just VND414.8 billion ($21.3 million) on a volume of 20.9 million shares, a decline of 15.7 per cent from Thursday's volume.
HCM City targets 12% GDP growth next year
HCM City aims to raise its annual per capita income to US$3,130 next year compared to an estimated $2,800 this year.
The city's socio-economic development and State budget plan for 2011 also targets a GDP growth of 12 per cent.
The plan will give investment priority for major infrastructure projects including those that are under construction and set for completion by the end of next year.
It plans a 2011 budget outlay of VND200.4 trillion ($10.5 billion), equalling 42.1 per cent of the city's GDP, according to the Department of Finance.
Speaking at a meeting held by the municipal People's Committee on Monday, Thai Van Re, director of the city's Department of Planning and Investment, said the important task next year is implementing effectively the economic restructuring plan that has been decided for the 2011-15 period.
Re also stressed the need to enhance the quality, competitiveness and effectiveness of the city's economic growth.
Next year, the city will continue to boost the development of nine major services sectors, considered to be the city's strengths and having great growth potential.
The services sectors are: finance, credit, banking and insurance; real estate; trading; transportation, ports and warehousing; post and telecommunications; science and technology; tourism; health; and education and training. The city will also develop strongly four major industrial sectors with high added value – mechanical engineering, electronics and information technology, chemicals and food processing.
Nguyen Thi Hong, deputy chairwoman of the municipal People's Committee, said tourism was one of the city's key economic sectors, and therefore, increased investment is necessary in infrastructure facilities, development of tourism products including waterway tourism.
Nguyen Thanh Tai, permanent deputy chairman of the municipal People's Committee, said the city has invested a lot in transport infrastructure over the past years, but this has not kept pace with the city's rapid development. Hence investment in this sector needs to be increased further, he said.
While the city's programme of stabilising the supply and price of essential goods has been successful in the past, the current situation demands more long-term measures, Tai said.
Tran Quang Phuong, director of the city Department of Transport, said the city should set up detailed plans right at the beginning of the year to deal with traffic jams and flooding.
Le Hoang Quan, chairman of the municipal People's Committee, ordered departments and agencies to focus on developing six major programmes identified at the Ninth Congress of the HCM City Party Committee including improving the quality of human resources. This would speed up the city's economic restructuring process, he said.
Quan also ordered departments and agencies to strengthen inspection and monitoring of the city's major infrastructure projects to ensure that they are of high quality.
Source: VNS, SGGP, Tuoitrenews
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