To prevent dollarization, the most important is to increase the confidence in the dong, experts say. Photo: Ngoc Thang The State Bank of Vietnam (SBV) has made several moves over the past weeks to curb dollar hoarding, but experts warn that those short-term measures will only have limited effects on shoring up confidence in the dong. They said cutting dollar deposit rates or tightening control over foreign currency transactions could stabilize the forex market for now. But anti-dollarization efforts only pay off when the public trust in the local currency is significantly improved by a stronger fiscal policy to curb debt and overspending, they said, warning the central bank against tapping the national forex reserves. To avoid dollar hoarding, the central bank regulates that businesses, from October 5, can only receive dollars they buy from commercial banks two days before they actually need to pay their foreign partners. Individuals and businesses who want to buy foreign … [Read more...] about Currency stability requires more than just market quick fixes: economists
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VietNamNet Bridge - While Vietnamese investors are rushing to sell stocks out of fears brought on by current uncertainties, foreign investors are injecting money into Vietnamese stocks, finding the cheaper goods attractive. The sharp drops of stock prices are the main reason foreign investors are buying now. The VN Index, after climbing to its highest peak of 610 points, in just one month has plunged 100 points, sinking to its deepest low so far this year. Shares in the market have seen their prices drop by an average of 25-30 percent from last year's record high levels. … [Read more...] about Foreigners rush to fill stock market vacuum left by fleeing Vietnamese
Financial markets rose on Monday after Greek lawmakers approved radical budget cuts to secure fresh aid and avoid bankruptcy after a day of street battles left dozens injured and buildings ablaze. MPs defied 100,000 demonstrators in Athens and Thessaloniki to pass another round of stringent budget measures sought by Greece's international creditors in return for a 130-billion-euro ($171 billion) bailout. "If we collapse, we won't be able to fix anything anymore ... the package is the country's only hope," Greek Prime Minister Lucas Papademos said before the tense vote, with thousands of police standing guard outside. Financial markets in Asia welcomed the news with solid gains and Europe opened firmer too but dealers warned that much depended on how the measures were implemented and whether Brussels would now sign off on the deal. In London, the FTSE 100 index of leading shares rose 0.67 percent in opening trade, with Frankfurt's DAX 30 up 0.83 percent and the Paris CAC 40 … [Read more...] about Greece backs austerity measures, boosting markets
A land without a “king” In the past year, giants from the Vietnamese distribution and retail sector started looking for new places to develop and have all set eyes on the same market that is bursting with unexploited potential, pharmaceutical retail.At first, Mobile World Group (MWG) announced intentions to set foot in the pharmaceutical retail sector by mergers and acquisitions (M&A). MWG expected to appear on the pharmaceutical retail scene in June 2018 by signing with such brands as Phuc An Khang and Phano Pharmacy.FPT Retail has carried out a pilot investment into Long Chau Pharmacy and expects to add this sector's revenue to FPT Retail's general revenue from 2019. Similarly, Nguyen Kim Group has just already raised its ownership to over 51.14 per cent (from the current 24 per cent) to dominate Lam Dong Pharmacy (Ladophar).Nguyen Kim has to pay around US$3 billion for this deal, then continues evolving Ladophar's business which is … [Read more...] about Who will take control of billion-dollar pharmaceutical market?
Which obstacles are currently keeping investors from developing solar projects in Vietnam?In my view, there are two major bottlenecks that make the implementation of solar power projects in Vietnam difficult, namely the mechanisms established in national policy and the technical capabilities of local businesses.Firstly, under Circular No. 16/2017/TT-BCT on solar power project development and standardised power purchase agreements for solar power projects, a firm only has 20 months for location surveying, licensing progress, and site clearance.Additionally, the provided tariffs apply only to solar power plants that reach their commercial operation dates (COD) before June 30, 2019, and their application will be limited to a period of 20 years from the COD.Secondly, local businesses have not been able to keep up with the level of implementation for large-scale solar projects, which raises concerns about the risks of operations. Thus, it takes some time for foreign investors to engage in … [Read more...] about Foreign players are rushing to Vietnam’s lucrative solar market