Gold price surges on high demand

SJC gold is still the benchmark for bullion trade in Vietnam. The local gold price hit new record of VND30.74 million per tael on Monday - Photo: Le Toan

HCMC – Local gold prices on Monday continued hitting new records on higher demand as Saigon Jewelry Holding Co. (SJC) quoted selling price at VND30.74 million per tael, increasing VND280,000 per tael from late last week.

Ton The Vinh Quyen, sales director of Sacombank Jewelry Co., said on Monday morning alone the company sold 3,000 taels while the buying volume was modest. A tael equals to 1.2 toy ounces.

Crowds of gold buyers made local gold prices suddenly increase on Monday morning while global prices rose slightly. Buying here eased in the afternoon.

Quyen said if the global gold price exceeds the level of US$1,300 an ounce, it would continue rising in the future. However, he expected the gold price to decline after the consecutive record highs in recent days.

Nguyen Cong Tuong, deputy head of sales at SJC, said the trading volume of the company on Monday was much higher than late last week. He said the buyers were mainly investors who borrowed gold from banks to sell in the past and now had to buy gold again to cut losses.

Meanwhile, Nguyen Thi Cuc, deputy general director of Phu Nhuan Jewelry Co. (PNJ), said as gold demand increased, gold traders had to compete with each other for sources, making a shortage in short term and pushing the price up.

Local gold price is about VND200,000 higher than global price. Cuc said given the difference, enterprises did not want to import gold, but her company had sent an import proposal to the central bank to import immediately when the price is higher.

Gold was traded at US$1,297.3 an ounce by 5:00 pm on Monday on European market, rising US$0.3 an ounce from late last week.

Related Articles

• Gold price surges on high demand
• Assoc insists on power price hike despite protests
• High rice price cuts exports
• Greenback firmer on signs of rising demand
• Energy group asks for 50% price hike

ANZ launches service to high-class clients

Hans-Peter Borgh (R), ANZ head of Affluent Banking in Asia Pacific, gestures while introducing the private lounge to meet customers of the Signature Priority Banking at the bank’s transaction office at the Kumho Asiana Plaza on Monday - Photo: Thuy Trieu

HCMC – ANZ Vietnam on Monday launched a suit of banking service called Signature Priority Banking, targeting affluent retail customers in Vietnam.

Signature Priority Banking provides full banking and wealth management services for customers in Vietnam who has assets greater than US$50,000 in terms of deposit, investment, and insurance products at the bank.

Hans-Peter Borgh, ANZ head of Affluent Banking in Asia Pacific, told a press meeting on Monday that the middle-income class in Vietnam was growing very fast in recent years and he forecast the number of clients using Signature Priority Banking of ANZ would also grow strongly in the future.

According to ANZ’s research, middle-class families in Vietnam was seven million in 2003 and the number will grow to 25 million by 2013, Borgh said. He also added that “the core of our service is a relationship manager who is dedicated to understanding each customer’s entire banking needs, from their preference for every day transactions to their wealth management plans for the future.”

Features of the new banking service of ANZ include Signature Priority Banking debit card with access to more than one million locations worldwide and credit card, and 24-hour phone and Internet banking. Other conveniences include full banking and wealth management services such as savings, current accounts, structured products, and bancassurance, and access to investment specialists, and regular seminars on investment strategies organized by the bank.

Entering Vietnam in 1993, ANZ now has a foreign-owned bank in Vietnam with 10 outlets nationwide. The Signature Priority Banking service has been introduced in Hong Kong, Taiwan, Singapore, Indonesia, and China.

Related Articles

• ANZ launches service to high-class clients
• VNA launches Chinese website
• IFC: Vietnam needs to increase PPP to support economy
• Vietnam Air accepts web check-in for int’l flights
• Ford rewards employee’s technician skills in contest

Vietnam, Czech Republic vow to expand cooperation

Vietnam and the Czech Republic have agreed to prioritise cooperation in
financial-banking, science-technology, trade, agriculture and biology,
transport, infrastructure construction and labour.

The agreement
was reached at the second session of the Vietnam-Czech Republic
Inter-governmental Commission on Trade and Scientific Cooperation in
Hanoi on September 28.

Czech Deputy Minister of Industry and
Trade Milan Horvoka, who is leading the Czech delegation to the session,
said that the two sides agreed to add the financial and tourism fields
to the list of projects.

Vietnamese Deputy Minister of Industry
and Trade Le Danh Vinh stressed that the two sides need to promote
information sharing through different channels, encourage businesses to
open representative offices or branches and set up companies in each
country.

The Ministry of Industry and Trade always facilitates
Czech businesses to increase cooperation in industry and trade in
accordance with Vietnam ’s laws and policies, he added.

During
the session, the two sides informed each other of their respective
country’s economic development and reviewed the implementation of
agreements signed at the previous session.

Two-way trade between
the two countries saw a steady growth in recent year. The figure rose
from 100 million USD in 2005 to 294 million USD in 2008 and reached 300
million USD one year later.

Considering Vietnam
as a traditional market with many advantages, Czech enterprises have so
far invested about 35 million USD in production of glass, crystal,
electrical appliances and construction materials.

In 2010, Vietnam and the Czech Republic are celebrating the 60 th anniversary of diplomatic ties./.

Related Articles

• Government vows to bail out insolvent shipbuilder Vinashin
• IFC helps Bac Ninh reduce environmental pollution
• Sept dollar credit growth up strongly in HCMC
• IFC: Vietnam needs to increase PPP to support economy
• State audit office looks for increased influence

ADB raises VN’s economic forecast to 6.7 pct

The Asian Development Bank (ADB) increased Vietnam ’s economic growth
forecast for 2010 from 6.5 percent to 6.7 percent while lowering the
inflation projection to 8.5 percent.

In its Asian Development Outlook 2010 Update (ADO Update) released in
Hanoi on Sept. 28, ADB also revised upward Vietnam’s GDP growth to 7
percent in 2011 from its April forecast of 6.8 percent.

“ Vietnam has consolidated its macroeconomic stability, and as a
result we are making upward adjustments in our growth forecast for both
2010 and 2011, while lowering the projections for inflation,” said Ayumi
Konishi, ADB Country Director for Vietnam .

According to ADB Senior Expert Lei Lei Song, Vietnam is performing well in the context of the global crisis.

“The shift from strong fiscal and monetary stimulus implemented during
the global recession to a more balanced policy stance helped to
stabilise financial and economic conditions and, together with the
global economic recovery, paved the way for solid economic growth this
year,” he said.

According to the General Statistics
Office, Vietnam ’s GDP growth rate reached 6.5 percent in the first
nine months of 2010.

Vietnam ’s neighbouring
economies, such as China , continue their robust growth next year,
which will help Vietnam ’s economy grow, Song added.

China ’s robust growth will demand more Vietnamese exports,
contributing to the Southeast Asian country’s growth, he said.

Vietnam ’s exports to China will continue to surge in the future, according to the senior expert.

Director
Konishi said as Vietnam is a low-middle-income country in the next
ten years, the country will have to face different challenges, including
how to raise the efficiency of the economy.

One of
the issues Vietnam should focus on in its economic development
strategy for the next 10 years is to identify its role in the ASEAN
bloc, he said, suggesting the country produce higher value products in
its efforts to speed up national industrialisation and modernisation.

He also recommended that Vietnam pay attention to taking measures
to narrow income gap in its development plan and attach environment
protection to development.

According to Yumiko Tamura, ADB
Principle Country Specialist, who is also Country Deputy Country
Director, developing Asia countries, including Vietnam , are
recovering with speed and vigour.

ADB forecast that these countries will see average growths of 8.2 percent in 2010 and 7.3 percent in 2011./.

Related Articles

• A brighter economic future
• Leaders monitor provincial progress
• Party reports come in from provinces
• UNESCAP speeds up green growth roadmap in Asia-Pacific
• Workshop calls for longer-term plans to audit State entities

Binh Dinh to host first forest product festival

The first Vietnam Forest Product Festival will take place in Quy Nhon,
the central coastal city of Binh Dinh province from March 26-29, 2011.

The Ministry of Agriculture and Rural Development, the Vietnam Timber
and Forest Product Association (VIFORES) and the provincial People’s
Committee announced the event on September 28 in Ho Chi Minh City.

Le Huu Loc, deputy chairman of the provincial People’s Committee said
that over 400 domestic and international organisations are expected to
attend with 700 pavillions.

Besides, seminars to promote trade in this field as well as cultural and culinary festivals will also be held, he added.

Hua Duc Nhi, Deputy Minister of Agriculture and Rural Development said
that the festival aims to highlight the contributions of the forestry
sector and step up the cooperation among forestry businesses both at
home and abroad.

According to the VIFORES, wood
products export is scheduled to reach 3.1 billion USD this year,
becoming one of five major hard currency earners of the country. Vietnam
currently ranks second in Southeast Asia in term of wood products
export. Its products are shipped to 120 countries worldwide./.

Related Articles

• Timber-product exporters sign $3b deals
• Agricultural exports rise 22.3% in first nine months
• Vinashin's new motorcycle product sparks debate
• Weightlifter grabs Vietnam’s first Olympic gold at Youth Games
• Hanoi T&T win first V-League after scoreless draw

Central Bank redefines circular

Banks will be allowed to lend up to 25 percent of their non-term deposits.

They will also be allowed to count their deposits at the State
Treasury and loans on a three-month or longer term basis with other
credit institutions as part of their reserves for lending. These
regulations are congruent with Circular No19/2010/TT-NHNN issued by the
State Bank of Vietnam last night to supplement Circular No 13.

The original circular would have restricted banks from issuing loans
from non-term deposits lodged by the State, State entities, the social
insurance fund or commercial credit organisations.

Banks now will also be allowed to lend funds raised from bonds and
deposits certificates. These moves are expected to free up the
inter-bank market and provide more capital to banks.

These regulations will come into effect on October 1.

Other regulations in the Circular No13 are kept unchanged as it
continues to prohibit banks from lending more than 80 percent of their
deposits. It also sets a 250-per-cent risk coefficient for all loans
secured against securities or real estate.

The capital adequacy ratio, CAR, for Vietnam 's banks is lifted to 9 percent – from 8 percent.

The central bank reported last Friday that 10 of 12 banks in Hanoi
have already raised their CAR to 9 percent. The other two would try to
meet the requirement before Friday.

National
Financial Supervisory Council deputy chairman Le Xuan Nghia said in an
economic seminar last week, "It's appropriate that the regulations in
the circular are close to the Basel 3 standards but it is unnecessary
for them to be stricter than Basel 3."

Basel
3 sets CAR at 8 percent and risk coefficient for all loans secured
against securities or real estate at 150 percent.

Deputy chairman Nghia worried that implementation of Circular No 13
would have a detrimental effect on the capital, securities and property
markets.

The Government said the purpose of Circular
13 was to ensure financial market stability and well-managed capital
circulation in the latter part of this year and early next year.

Some banks pledged at a meeting of the Vietnam Banks Association in
HCM City last week to simultaneously cut deposit interest rates 0.4
percentage points to 11 percent as soon as next Friday and no later than
October 15 if the amended circular came into effect.

Circular 13 is intended to address shortcomings in various risk-management provisions.

The Fullbright Economics Teaching Programme's Professor Huynh The Du
argues the changes proposed in the circular are necessary to Vietnam
's financial system.

The 9 percent CAR and a 250
percent risk coefficient would improve financial stability and prevent
banks from entering too deeply into risky lending, he said.

But Nghia said that the solutions to the pivotal problems of Vietnam
's financial market were not confined to a higher CAR but accurate
accounting, financial statements and the valuation of assets.

The Prime Minister first ordered the central bank to review the
Circular 13 which is intended to govern bank reserves about six weeks
ago./.

Related Articles

• Central bank makes little change to Circular 13
• Banks scramble for mid-level managers
• Vietnam surpass Malaysia at Eximbank Cup
• Sept dollar credit growth up strongly in HCMC
• ANZ launches service to high-class clients

Data boosts Monday markets

The indices on both of Vietnam 's stock exchanges closed slightly
higher on Sept. 27 after the publication of economic growth figures.

Gross domestic product (GDP) was reported to have
risen 6.52 percent during the first nine months of the year. Growth was
even more robust in major cities, reported at 11.2 percent in HCM
City and 10.6 percent in Hanoi .

On the HCM
Stock Exchange, the VN-Index continued in positive territory throughout
on Sept. 27's session, closing up 0.11 percent to 450.20 points.

The value of trades reached 951.3 billion VND (48.8 million USD) on a
volume of 37.4 million shares, an increase of 6 percent over last
Friday's session.

Decliners once again outnumbered advancers, however, by 129-77.

Ocean Group (OGC) remained the most-active share on the southern
exchange, with 2.48 million traded. OGC closed down by about 3 percent
to 32,400.VND (1.66 USD) per share.

Of the 10
leading shares by capitalisation, only three advanced, with Bao Viet
Holdings (BVH) and Sacombank (STB) reaching their ceiling prices.

Related Articles

• Early warning system on anti-dumping cases kicks off
• Market moves up sharply
• HCMC to relay grand sale program to November
• High rice price cuts exports
• Timber-product exporters sign $3b deals