How much operating cash does a business need

Egroup's chairman Nguyen Ngoc Thuy has purchased Apax Holdings' bonds At a recent meeting with the National Assembly Standing Committee on the socioeconomic situation, Minister of Planning and Investment Nguyen Chi Dung said that increasing numbers of local enterprises have sold their properties to foreign businesses. The selling of assets and properties, or even entire businesses, has been common over the past year or two, with more businesses falling into difficulties and lacking capital. At the beginning of March, for example, the owner of the Dolce by Wyndham Hanoi Golden Lake Hotel in the heart of Hanoi put the hotel on the market at a starting price of $250 million. Nguyen Huu Duong, chairman of the hotel owner Hoa Binh Co., Ltd., said that the company's social housing project had not been granted construction permits, meaning a lack of cash flow and the need to sell off assets to ensure liquidity. “Many of the partners negotiating to buy our hotel are businessmen … [Read more...] about Foreign investors buying up local businesses

Lawmaker Ha Sy Dong, deputy chairman of Quang Tri Province, said Thursday that the large amount of cash should be used for key projects to strengthen the economy, instead of letting it stay idle. The government can also consider using it to lower interest on loans, he added. Another lawmaker, Tran Anh Tuan, said earlier that the idle cash should be used to support workers by building them housing and creating new jobs. But Minister Ho Duc Phoc said that the sum of money had already been earmarked for many key national projects and therefore cannot be used for other purposes. The reason the money is unused for now is because of delays in disbursement, he added. Tran Van Lam, a member of the National Assembly’s Finance Committee, said that although the amount of money is large, the government should not rush and thus use it ineffectively. "If we use it quickly and it results in losses, there would be a even greater pain," he said, adding that careful consideration is needed … [Read more...] about Lawmakers push government to utilize $42B in coffers

A residential area in Ha Noi. Real estate becomes more attractive under the low interest rate context. —VNA/VNS Photo Cash flow always looks to more attractive investment channels with higher returns, so when interest rates decrease, cash flow will shift from the savings channel to the stock and real estate markets, according to experts. According to Huynh Minh Tuan, Investment Director at Mirae Asset Securities & Investments Company, when interest rates are low, savers will begin to consider and shift their asset allocation. Cash flow is always "smart money" and always looks for more attractive investments with higher returns. The money can move from the savings channel to other investment markets, such as real estate and stock markets, but there will be a delay. It may be a few months late for the real estate channel, but for the stock channel, it will be faster, maybe from next month, Tuan said. The activity of transferring savings books has also flourished recently. … [Read more...] about Stock, real estate markets to become more attractive thanks to low interest rates

Going to department stores to avoid the hot weather has become the 36-year-old woman’s family ritual. On sunny days, their house in a cluster of rentals in Quyen District, Hai Phong, absorbs the heat from outside, making it unbearably hot. Hoa tried several ways of reducing the heat in her house, from pouring water onto the floor, to wiping the walls with a wet cloth, to opening every door and window. None seemed to work. The three-member family thus began seeking air-conditioned places outside the home to avoid sitting at home sweating and being uncomfortable. Both Hoa and her husband work at factories. Their accumulated monthly income is VND14 million (around $596), which is just enough to pay for their costs of living. Hoa once contemplated buying an air-conditioner, but even the one with the lowest power consumption would make her family’s monthly electric bill increase by VND400,000. "With that amount of money, I can buy enough food for my family to eat for eight days," … [Read more...] about Northerners use public ACs to escape heat wave

Due to a decline in orders, PouYuen Vietnam, a shoe manufacturer whose clients include Nike and Adidas, has announced it will eliminate nearly 6,000 permanent positions between late May and early June. This will be the largest series of terminations since the corporation began operations in Ho Chi Minh City in 1996. With an estimated 50,000 employees, the company is one of the commercial capital's largest employers. However, it made a similar move in February, laying off nearly 3,000 permanent employees and not renewing the contracts of another 3,000 temporary workers. Pham Hong Viet, president of the Hanoi Leather and Footwear Association, said, "The export market has experienced a grave decline in orders." The size of the drop-off in orders ranges from 50 to 70 per cent, with some domestic companies suspending production entirely, with currently no orders for export. The market has shown little sign of recovery thus far. "Even though Nike and Adidas are such well-known … [Read more...] about Job cuts continue for the leather and footwear industry