The Prime Minister has recently shown the government's resolve to keep 2013's inflation at 6 percent - a task that will entail overcoming a variety of challenges, according to Minister of Planning and Investment Bui Quang Vinh. During an online dialogue with citizens on December 30, Vinh noted that high inflation is the major concern for not only policymakers and businesses, but also ordinary people. It is the root cause behind the need for a tight financial and monetary policy, ramifying undesired effects for all economic sectors. There is no denying that high inflation leads to the depreciation of the domestic currency against the US dollar, high bank interest rates, and losses in business operations. The government introduced a number of bold measures to keep 2012's inflation in check. As a result, 2012's consumer price index (CPI) slowed to just 6.81 percent, a marked improvement on the galloping 18.1 percent in 2011 and 11.85 percent in 2010. The government has … [Read more...] about Challenges of national economy in 2013
Market economy pros and cons
Despite bringing about positive effects in attracting foreign direct investment (FDI), decentralisation leaves corollaries. In order to secure the national interest in calling for more quality FDI, it's high time to improve this mechanism. … [Read more...] about Decentralisation’s pros and cons
The Pros And Cons Of Diversification By Nguyen Minh Phong Diversification of investment is becoming a rising trend among business groups in many countries. The trend has both its pros and cons, especially for State-owned conglomerates in Vietnam. Big State-owned business groups have expanded operations to different areas besides their core operations. Vietnam Post and Telecommunications Group (VNPT) has branched out to advertising, real estate trading and office leasing, in addition to their core business of providing telecom and IT products and services. Besides electricity generation, public communications and electrical engineering, Electricity of Vietnam (EVN) has expanded operations to real estate, finance and banking. Vietnam Rubber Group (VRG) has invested in various areas such as mechanical engineering, port operation, transport, construction material production and trading, real estate, hospitality and tourism. The diversification of investment by business groups and … [Read more...] about The Pros And Cons Of Diversification
More and more Vietnamese businesses want to be listed on the US stock exchange, but not all of them are qualified to join this “hard-to-please” market. Yet, the Vietnam Construction and Investment Joint Stock Company, Cavico, has become the first to venture in that arena. Although Cavico’s success is expected to pave the way for others to follow suit, barriers ranging from a huge difference between two economies to the strictness of American laws have remained as a tough challenge for any enterprises who want to join this arena. So, is it difficult or easy to be listed in the US stock echange? Mr Henry D.Fahman, CEO of Providentical Holdings, Inc – the US’s media group, who has made a great contribution to the success of Cavico, shared his experience: Could you talk about the benefits for businesses listed on the US stock exchange? With its enormous capital volume, the US market has good liquidity. In addition, being listed in the exchange is itself a … [Read more...] about How to be listed in US stock market?
During its one-month sitting, which began in Hanoi on May 6, the National Assembly is expected to adopt 11 bills, consider seven others, evaluate the Government’s socio-economic performance and adjust growth targets for the remaining months of the year. Legislators will debate reports submitted by the Government, the Chief Judge of the Supreme People’s Court and the director of the Supreme People’s Procuracy on how they are progressing with their responsibilities. They will also spend time questioning Cabinet members on issues of voter concern. They will also discuss the Government’s plan to adjust Hanoi’s administrative boundaries and several other neighbouring provinces, and a pilot scheme to allow foreigners to buy houses in Vietnam. In his opening speech, NA Chairman Nguyen Phu Trong stressed that the session is taking place at a crucial time when the Government, ministries, localities and businesses are working hard to minimise the adverse impacts … [Read more...] about NA deputies discuss growth targets and solutions