Wall Street sneezes, local markets shiver (09-11-2009) An investor keeps watching a share prices board in Bao Viet Securities. VN-Index continues on a downward trend last week. — VNS Photo Viet Thanh HA NOI — Domestic stock indices continued on a downward spiral last week as global market fluctuations continued to have a significant impact on local investor sentiment. On the HCM City Stock Exchange, the VN-Index lost 32.24 points overall last week to close at 554.88 points, a decline of 5.49 per cent from the previous Friday's close. The average daily trading volume dropped by 26 per cent from the previous week's average to 57.6 million shares, while trading values averaged VND2.7 trillion (US$146 million) per day, down 25 per cent from the previous week's figure. On the Ha Noi Stock Exchange, the HNX-Index closed at 189.14 after losing 10.24 points during the course of the week, a cumulative loss of 5.14 per cent. Daily turnover averaged VND1.4 trillion (US$75.7 … [Read more...] about Wall Street sneezes, local markets shiver
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International Bonds: Time Matters
International bond sales are one of the main capital sources which big State-owned companies expect to resort to until 2020, especially when the need for financial prowess will become increasingly pressing. For instance, the Vietnam Oil and Gas Group (PVN) needs more than US$10 billion in 2009-2015, excluding existing capital and that borrowed by its partners and joint ventures. "We plan to issue US$1 billion worth of bonds in the U.S. in the fourth quarter. This is PVN's first offering," says Phan Thi Hoa, head of PVN's audit committee. Hoa adds that PVN will tap into international bonds to invest in major projects. Pham Hong Thai, head of finance of the Vietnam Coal and Mineral Industries Group (Vinacomin), says that this conglomerate also chooses the fourth quarter to issue US$500 million to US$1 billion worth of bonds. The exact amount will be determined based on the liquidity of the bonds and market demand at the time of issue. According to Thai, Vinacomin is in thirst of … [Read more...] about International Bonds: Time Matters
KDB is expanding its presence in Asian market
KDB is expanding its presence in Asian market Mr. Roh Yung-Gi Korea Development Bank, a top corporate investment bank in Korea, has established its representative office in HCMC in a long-term endeavor to reinforce its business in Asia and to better serve its clients in this emerging market. The Saigon Times Daily talks with Mr. Roh Yung-Gi, Executive Director, Head of International Banking Division at the Korea Development Bank, about the bank’s business vision in Vietnam in the long term and its specific goals in the near term. Excerpts follow. The Saigon Times Daily: First of all, could you please brief us on Korea Development Bank’s vision and its way to realize this vision? - Mr. Roh Yung-Gi: The vision of Korea Development Bank is to be a “Pioneer Bank of Asia”. We are expanding the overseas operation of our key businesses, as part of our strategy to realize this vision. Our key financial activities include project financing, corporate banking, and … [Read more...] about KDB is expanding its presence in Asian market
Prices must be fixed by the market
Giving the right to fix prices of goods and services back to the market will not affect the state's power. It will actually strengthen the state because the state can control interest groups, promote the market to function effectively and create opportunities for related sides to improve production. That was the main content of talks entitled "Changing policies to enhance economic vitality," held recently by VietNamNet, with the participation of three experts: Dr. Nguyen Dinh Cung, Vice Director of the Central Institute for Economic Management, Scott H. Jacobs, high-ranking advisor of the US Agency for International Development-funded Vietnam Competitiveness Initiative project and Nick Malyshev from the Organisation for Economic Cooperation and Development (OECD). The world's biggest renovation project In 2007, the Master Plan for Simplification of Administrative Procedures in state management for the 2007-2010 period, also called Project 30, "opened fire" straight into one of the … [Read more...] about Prices must be fixed by the market
Even with a stable market, FX hedging is advised
It’s better to hedgeHedging the foreign exchange (FX) risk arising from transactions in foreign currencies is not a new practice for many multinational companies, investors, exporters, and importers in Vietnam. When it comes to choosing a bank to handle large-scale transactions to support the merger-and-acquisition, investment, and business activities for these institutions, the capability and creditability of the party that carries the risk make a difference.ANZ Vietnam has emerged as a market leader with large FX volume trading with clients. The bank is a major participant in the local FX market, where it provides an extensive range of foreign exchange solutions to its clients, including spots, forwards, swaps, and options.“We have active dialogues with our clients to understand their risks and identify the suitable product that can help them hedge their currency exposure at reasonable costs, and we work with them to ensure that the transaction follows regulatory … [Read more...] about Even with a stable market, FX hedging is advised