A miniature model of a Vietnam Airlines aircraft in a booking office in Ho Chi Minh City. The privatization of state-owned enterprises, including Vietnam Airlines, will help the government raise money for development, instead of issuing more bonds, expert Bui Kien Thanh argues. In the current situation, it is unreasonable to issue more bonds since the government's spending is already too large, and any increase in public spending on infrastructure will help create jobs only temporarily, economist Bui Kien Thanh tells Vietweek. Vietweek: There have been calls for the government to issue more bonds to raise money for public spending as a means to revive the economy. What do you think about it? Bui Kien Thanh: It is difficult to raise revenues this year. Though more than half the year has passed, we have reached only 40 percent of the year's revenue target. The revenues are not enough for spending, so there is an opinion that the government should more bonds. Meanwhile, we are facing … [Read more...] about Overspending government should not issue more bonds: economist
Why issue bonds instead of stock
VietNamNet Bridge - The consumer price index (CPI) in the last three months saw the sharpest increases in comparison with the same periods of the past 20 years. High inflation is the result of a combination of factors … [Read more...] about Why has the inflation rate climbed to the peak of the last 20-years?
Trinh Hoai Giang Analyzing the stock market and the current influential factors, Trinh Hoai Giang, deputy general director of the HCMC Securities Corp. (HSC), said stocks could hardly soar from now to the year’s end as long as the macro-economy remained unstable. In a recent meeting with the Daily, the expert mentions factors that hinder the equity market from fast recovery. Excerpts: The Saigon Times Daily: There have been favorable macro-economic conditions like low inflation in May and June and deposit rates down five percentage points, yet the stock market was stagnant in the last two months. What is the reason for this in your opinion? Trinh Hoai Giang: I think the macro-economic signs are not as positive as seen on the surface. Specifically, it was forecast that this year’s inflation would not be high. Inflation will rise by 6-7% this year. This currently shows that prices are stable, but the chance of prices picking up again is unknown. Falling inflation is … [Read more...] about Stocks cannot advance in unstable macro-economy
VietNamNet Bridge – Since CBRE was established in Vietnam 12 years ago, managing director Marc Townsend has witnessed many changes in Vietnam’s real estate market. He recaps on his decade in the country. In 2001, I was sitting in the building at 63 Ly Thai To, preparing for the first video conference between Vietnam and Hong Kong. Looking down the street, a car would appear every 5 or 10 minutes surrounded by a sea of bicycles. But times have changed. Now it’s cars! One of only two latest Mercedes S series in the world can be easily spotted in Ho Chi Minh City. The gap in all aspects of technology, education, business environment and living standards has begun to shrink, and increasing numbers of multinational companies have come to invest in Vietnam. This trend is extremely significant for the market to take a further step forward, but a most interesting and noticeable phenomenon that has taken me 10 years to figureout, is that Vietnam hasn’t changed and … [Read more...] about Developers reap benefit of change
GDP growth rate in the first nine months averaged at 4.56 percent (3.14 percent in the first quarter, 4.46 percent in the second quarter, and 5.76 percent in the third quarter). The GDP growth rate in agro-forestry-fishery sector rose 1.57 percent, in industry sector rose 6.5 percent, and in services rose 5.91 percent. The growth rates in the three sectors in the third quarter were higher than those in the first and the second quarters. The economic situation, however, was still pregnant with worrying signals for investors. Change in exchange rate The situation in which goods exports sharply fall while import growth rate rises incessantly are forecast to cause difficulties for the balance of payments. The goods import turnover in September, 2009 is estimated at US$6.2 billion, up 6 percent from a month earlier and 10.7 percent from a year earlier. The trade gap was US$1.5 billion in the month and US$6.5 billion in the first nine months. In the remaining months, imported goods will … [Read more...] about More Channels for Capital Attraction