Vietnam Stocks News

The attached content details the fundamental financials and prices of listed stocks on the Ho Chi Minh Stock Exchange (HOSE) on January 6, 2009.

FinancialsofListedCompaniesonHOSE(6-1).xls

HCM City stocks fall on sluggish trading

The VN-Index slid 1.43 points, or 0.46 percent, to close at 311.91 on Jan. 5 as trading remained sluggish. Volume on the HCM Stock Exchange was only 7.3 million shares, worth 190.6 billion VND (11.2 million USD).

Saigon Securities Inc (SSI) was the most active share on the day, although with only 717,000 traded.

Hanoi Securities wrote in a report on Jan. 5 that official policies issued to stabilise the economy and support market growth had failed to motivate investors.

“Actual moves show that mixed developments will continue in the short term,” the report said. “With foreign clients accelerating purchases over the last few weeks, investors should have a more long-term view.”

Foreign investors were net buyers of 710,000 shares in Jan. 5’s trading, with a net value of 26.3 billion VND (1.5 million USD).

EuroCapital Securities analysts said that the domestic economy in 2009 would see significant impacts from the global economic downturn, especially reflected in slowed growth of gross domestic product, exports and business performance.

These conditions would hinder stock market development, they said, predicting further monetary and fiscal policies related to interest rates, exchange rates and taxes to be applied this year in an ongoing effort to stabilise the economy as well as the stock market.

Trang An Securities chairman Le Ho Khoi said this year would offer opportunities to securities investors as share prices have slumped deeply. Meanwhile, gold and foreign currency markets were still fraught with risks, and the real estate market remained stagnant.

“Of course, investors should only expect reasonable profit levels,” Khoi cautioned.

Vincom Securities chairman Dinh Quang Nuong said that capital flows into the domestic stock market this year were “an unknown”, noting that 2008’s ups and downs had made domestic investors highly cautious, while “foreign investors had many concerns outside Vietnam.”

“In 2009, the stock market may not growth strongly, but it will develop in depth,” said Nuong. “Market development is not reflected only in stock indices, but also in investor experience.”

In Hanoi , the HASTC-Index closed 0.66 percent lower at 103.78 points on a trading volume of 3.4 million shares and a turnover of about 68 billion VND (4 million USD). Most-active share Asia Commercial Bank (ACB) generated orders for only 585,000 shares.

Vietnam-Switzerland trade ties move to new height

Vietnam and Switzerland exchanged a series of trade delegations to probe into each other’s markets and seek investment opportunities in 2008, bringing the two countries’ trade and economic relations to a new height.

According to the Vietnam Trade Bureau in Switzerland , to date, 90 Swiss enterprises are operating in Vietnam , providing jobs for 2,000 local workers.

In the first 10 months of 2008, Vietnam ’s exports to Switzerland marked a year-on-year increase of 32 percent, and imports, 39 percent.

Vietnam also imported gold worth billions of Swiss francs.

The Swiss Import Promotion Programme (SIPPO) is mapping out various projects for 2008-2011 to assist Vietnamese medium- and small-sized enterprises to integrate into the world economy.

These projects fall within the framework of Swiss-funded technical assistance projects to help Vietnam join the world economy, especially the Swiss and European markets.

BIDV, Vinalines sign comprehensive cooperative agreement

The Bank for Investment and Development of Vietnam (BIDV) signed a comprehensive cooperative agreement with the Vietnam National Shipping Lines Corp (Vinalines) on January 5.

Under the agreement, BIDV will provide Vinalines a loan worth 15 trillion VND in the 2009-2011 period to invest in developing its seaports, fleets and marine services.

In addition, the two sides will cooperate in underwriting and securities.

Hanoi bourse upgraded to stock exchange

Prime Minister Nguyen Tan Dung has given the go-ahead to the Hanoi Securities Trading Centre (HASTC) to turn itself into the Hanoi Stock Exchange.

The Hanoi Stock Exchange will operate under the model of a State-owned one-member limited liability company, according to the PM’s Decision 01/2009/QD-TTg.

The stock exchange has a charter capital of 1 trillion VND (roughly 58.8 million USD), including the amount of capital transferred from the HASCT.

It will inherit all rights and obligations from HASTC as well as fulfill those set out in the Securities Law and the Enterprise Law.

HSBC officially launches affiliate in Vietnam

HSBC Bank Ltd (HSBC Vietnam), a wholly owned subsidiary of Hong Kong Shanghai Banking Corporation Limited, opened its headquarters in Ho Chi Minh City and officially commenced operations in Vietnam on January 5.

With registered capital of 3 trillion VND, HSBC Vietnam is the first wholly-foreign owned bank in Vietnam .

After inaugurating the headquarters, HSBC Vietnam will open a transaction centre in HCM City and branches in Hanoi and Binh Duong province.

“This is a great milestone for HSBC in Vietnam and demonstrates our strong growth in developing markets and commitment to the development of Vietnam ’s financial and banking sector,” said president and CEO of HSBC Vietnam Thomas Tobin.

President of HSBC in the Asia-Pacific region Vincent Cheng said the establishment of HSBC Vietnam fits with its dual growth strategy of organic expansion and strategic partnerships.

(Source: VNA)

VietNamNet Bridge - The EU decision to remove Vietnamese footwear from the Generalised System of Preferences (GSP) as of January 1 is expected to put even greater pressure on domestic producers and exporters.

Higher import duties will be added to the anti-dumping duty of 10 percent that EU has slapped on 33 categories of Vietnamese leather-upper shoes since 2006.

Vietnam Leather and Footwear Association (Lefaso) Vice Chairwoman Nguyen Thi Tong said the loss of GSP status and the anti-dumping duty will compound the current difficulties of domestic shoemakers arising from the global economic crisis and falling demand.

As a result, Tong said, many businesses, especially small-and medium-sized enterprises, have already cut production and laid off workers.

Under the GSP - a programme that normally helps developing countries facilitate exports to the EU market - Vietnam shoes had qualified for lower import tariffs. Those import duties will now increase by 3.5 - 5.5 percent on average.

Duties on leather shoes will surge to 8 percent while those on canvas footwear will spike by 17 percent.

While the EU is the biggest importer of Vietnam footwear, accounting for around 55 percent of the export turnover, the anti-dumping tariff has already driven that figure down from a high of 66 percent in 2004.

The domestic footwear industry was estimated to have earned a total of 4.5 billion USD in exports to all markets in 2008, an increase of 10 percent over 2007. Vu Van Cuong, deputy director of the Ministry of Industry and Trade’s Light Industry Department, said shoemakers would suffer great losses due to higher tariffs in an EU export market worth about 2 billion USD a year.

The GSP had also attracted a number of foreign investors to invest in footwear production in Vietnam , Cuong said, adding that when the advantage disappears, it was likely that foreign enterprises would shift production to other nations.

A delegation of the European Commission (EC) will commence its dumping investigation this month.

The deputy director of the Ministry of Industry and Trade’s Competition Administration Department, Bui Son Dung, said this was the final review to consider whether anti-dumping measures would be lifted, with the final decision expected in mid-year.
To overcome the current difficulties, the department recommended shoemakers focus on the domestic market, seek new export markets and try to cut production costs.

(Source: VNA)

VietNamNet Bridge - An Binh Securities Co has announced that it will pay any income tax due on securities investment for its clients during the first quarter of this year.

Stockbrokers offer to pay customers’ taxes

The brokerage is making the offer to counteract the perceived psychological impact on investors caused by the new Law on Personal Income Tax which, for the first time, subjects dividend income and capital gains from securities trading to taxation.

The new tax law took effect on January 1.

Counting on the tax to have limited real impact on investors, An Binh hoped its offer would help stimulate trading during the current market doldrums.

Nguyen Thanh Hai, head of brokerage and business development department for the firm, said the company would consider whether to continue the offer once the first quarter ends.

Orient Securities Co recently made a similar but more limited offer. For clients with trading value of up to 5 billion VND (294,000 USD) a month, the brokerage would pay 80 percent of the 0.1 percent transaction fee for each trade, a tax option set forth in the new law in lieu of a net capital gains tax.

John Nolan, a HCM City-based analyst, said such offers demonstrated the increased competitiveness among securities firms in the context of market turmoil. “If you want to increase your market share, you have to create prominent products for your customers. That’s a fact,” said Nolan.

“When we decided to offer this service, we focused on our pledge to customers to come together with them during hard times,” Hai said.

(Source: VNA)

VietNamNet Bridge - Deputy Minister of Industry and Trade Bui Xuan Khu has told VietNamNet that the ministry has submitted the electricity price increase plan to the Government. Two projects for the price increase have been suggested with the increase of 8.3% for the low scenario and increase of over 9% for the high scenario.

 

Ministry proposes government to delay electricity price increase

Deputy Minister of Industry and Trade Bui Xuan Khu

Khu said that the suggested projects have considered the current socio-economic conditions. Under the roadmap on electricity price increase, the increase will be applied in the first quarter of 2009.

What are the differences between the projects submitted by the Ministry of Industry and Trade (MOIT) and the ones suggested by the Electricity of Vietnam?

EVN wants bigger increases to happen sooner than that suggested by MOIT. MOIT has considered the commodity prices and the withstanding of businesses. Another noteworthy thing is that the decreasing crude oil prices will affect the prices of other kinds of power.

You have said that the price increases have been designed in accordance with the electricity price adjustment roadmap. However, do you think that it is necessary to reconsider the price increase when the demand is decreasing as nowadays?

 

No, I don’t think so. Currently, we have very cheap electricity from hydropower plants, the depreciation period of which have run out. If we only consume electricity from hydropower plants, we will make fat profit. However, in fact, we also have to use the electricity from newly operational thermo-power plants like Ca Mau, which is selling electricity at US 0.08/kwh. With the retail price of US 0.05, we are making the loss of US 0.03. Therefore, raising electricity price proves to be unavoidable.

Has MOIT considered the possible impacts of the electricity price increases on people’s lives and production?

We have made thorough consideration when drawing up the projects. The average electricity price in the world is now US 0.07. However, it would be unbearable for both businesses and consumers to see the price soar to US 0.07 at once. The price increases will be carried out step by step.

Can you see any possibility of delaying the electricity price increase plan?

The Government asked MOIT to build up the plan on electricity price increase. We have done this and we are waiting for the Government’s decision. The price increase has been scheduled to take place in Q1, 2009.

The Government is trying to stimulate the demand. Do you think that the electricity price increases at this moment will spoil the demand stimulus program?

It seems that a paradox exists that the electricity price increases at the time when we need to see the prices decrease to stimulate demand. However, I have to remind you that if the price increases by 8%, the production cost will not increase sharply, as electricity just amounts to several percent of the production cost.

Phuoc Ha

VietNamNet Bridge - Banks which did not aim at hot credit growth, but focused on restructuring loaning and trying to reduce bad debts in 2008, will meet less difficulties in 2009, experts say.

 

Credit not the biggest earner

According to the State Bank of Vietnam, total outstanding loans in 2008 only rose by 21-22% over the end of 2007, while the allowed level was 30%. Only small banks relied on credit, while bigger banks have been seeking income from diversified sources.

When the capital mobilisation cost soared, a lot of banks incurred losses from loaning. As exporters could not borrow money from banks in US$, banks had to rack their brains to find ways to boost credit. Eximbank then announced it would lend to businesses in VND at the interest rates applied for US$ loans, if exporters committed to sell dollars to the bank at negotiated prices.

Many banks reaped big profit from foreign exchange trading in the market. The interbank exchange rate increased by 5.4%, and the commercial banks’ transaction exchange rate rose by 8-9% in comparison with the end of 2007.

According to HSC Securities Company, the income from foreign currency trading activities of Asia Commercial Bank in 2008 brought in 40% of total income.

As for the Military Bank, the income from foreign currency trading in the first half of 2008 alone was four times higher than that of 2007 as a whole.

The capital of VND7,610bil pumped by foreign strategic partners in May-July helped the input capital cost of Eximbank become more competitive than other rivals. According to Dao Hong Chau, Deputy General Director of Eximbank, the bank’s main sources of income came from foreign currency trading and foreign currency loaning.

The bond market brought a considerable sum of income to banks. The banks which bought cheap bonds in May could earn the profit of up to 30-40%.

Regarding other services, despite big efforts, banks could not make big changes in diversifying services with income from services accounting for only 5-7% of total income. Even East Asia Bank (EAB), a well known overseas remittance and card service provider, only saw fees accounting for 10% of total income.

Challenges on the horizon in 2009

With the sharp falls of the real estate market, the bad debt of the banking sector had reached VND43,500bil by the end of the year, or 3.5% of total outstanding loans.

Analysts say that an increase of bad debt ratio in 2009 is possible.

They say that banks will still face a lot of difficulties in 2009 caused by the adjustments in the monetary policies of the State Bank of Vietnam which aim to push up production and business, and prevent economic slowdown.

The central bank is believed will control credit quality more strictly making it difficult for credit to become as hot as it was in 2007.

In the immediate time, the interest rates are expected to go down as per instruction of the Prime Minister. This will make bank interest rates become less attractive in the eyes of investors in comparison with stock and gold investments. Therefore, banks will have to seek solutions to retain clients.

In 2009, domestic banks will have to officially enter into fierce competition with 100% foreign-owned banks, which will force them to expand their networks, improve technology, diversify services.

Therefore, analysts have every reason to believe that 2009 will be the year that ‘filters’ banks.

(Source: Saigon tiep thi)

VietNamNet Bridge - Cancelled orders, narrowed markets, export prices sharply falling, and missed export opportunities, the big problems of 2008, will still challenge exporting in 2009.

Export opportunities should not be missed

Workers of Phu Lang villages are making products for export

At least two big export opportunities were missed in 2008, which could have brought hundreds of millions of dollars if they had been taken full advantage of.

The first opportunity came when the world’s rice export price skyrocketed which allowed to sell rice at US $1,100-$1,200/tonne. However, Vietnamese enterprises were ordered to stop exporting rice at the time when the price was high. Vietnam later resumed the rice exports, but with the price down by nearly US $500/tonne, enterprises lost US $200 million from export deals.

The second opportunity came when the ingot steel price soared to the record high at US $1,150/tonne. The high price prompted Vietnamese enterprises to make massive exports of ingot steel to South Korea, Malaysia and Thailand. However, the Ministry of Industry and Trade then asked the Government to take drastic measures to stop ingot steel exports.

The ingot steel price has later dropped to US $650/tonne, just 50% of the highest peak price, while domestic enterprises have become miserable with big stocks.

The opportunities in 2008 will not repeat. How will Vietnamese enterprises look for new opportunities for 2009?

Former Minister of Trade Truong Dinh Tuyen believes that export companies need to be supported in 2009, and that it is necessary to set up a fund to support the companies, especially small and medium ones.

Meanwhile, Dr. Cao Sy Kiem, the former Governor of the State Bank of Vietnam, now Chairman of the Association for Small and Medium Enterprises, noted that export companies should not miss the home market. “Instead of focusing on high-grade products for export, enterprises should also think of making the products that meet the demand of popular people of the country,” Kiem said.

Export order decreases unavoidable

The number of orders from foreign partners began falling sharply in late 2008 with the orders down by 20-30% for garment companies, and 30% for seafood exporters

Thousands aquaculture households in the Cuu Long River Delta felt miserable when the basa price dropped dramatically, while oversize fish could not be sold. Meanwhile, farmers in the central highlands suffered from coffee price decreases. Eleven million labourers in 2,000 trade villages nationwide have been pushed into unemployment as export orders have gotten stuck.

Meanwhile, the Ministry of Industry and Trade (MOIT) has warned that exporters may still face big problems from exchange rate fluctuations, anti-dumping lawsuits, and technical barriers to be installed in many countries. In December 2008, the central bank raised the interbank exchange rate by 3% to VND 16,989/US $1.00, while the forex trading band remains unchanged at +/-3%.

In Q4 2008, the prices of export items decreased by 25-30% in comparison with the beginning of the year.

Developing new export products, seeking new export markets and raising competitiveness of export items are the things MOIT has urged businesses to do.

(Source: Tien phong)

Ten economies head the list of most optimistic this yearOf private businesses around the world, those in Vietnam are the seventh most optimistic this year, down from third last year, a Grant Thornton survey has found.

India again topped the chart at 83 percent followed by Botswana at 81 percent.

Because of the effect of the global financial crisis and high domestic inflation, Vietnamese optimism has fallen to 31 percent this year from 87 percent last year.

But the Vietnamese economy still maintained a high growth rate of 6.23 percent while major economies like the US, Japan and EU are in recession, it said.

Grant Thornton polled senior executives from over 7,000 businesses in 36 economies.

The report also said falling consumer demand is the biggest threat to private firms.

By Thuy Hai, translated by Thuy DoanBy Thuy Hai - Translated by Thuy Doan

The Ho Chi Minh Stock Exchange took a nap Tuesday after three minor drops during the morning, as investors bought shares over expectations of strong earning results in the fourth quarter last year, which will be released soon this month.

VN-Index, Vietnam’s main stock index, closed at 314.04 points, showing a slight gain of 0.68 percent.

Turnover was slightly improved, with 10.3 million shares traded for VND257 billion ($14.7 million). Of the index’s 176 members, 108 moved up and 32 slipped.

Foreign investors continued to buy most stocks, pumping in VND32 billion ($1.83 million). PetroVietnam Fertilizer and Chemical Joint-Stock Co. (DPM), Saigon Securities Inc. (SSI), Pha Lai Thermal Power (PPC), Hoa Phat Group (HPG) and Hoa Sen Group (HSG) were among their top five buys.

Vincom Joint-Stock Co. (VIC), the seventh-largest company by value on the exchange, fell VND2,000, 2.5 percent, to VND78,000 ($4.46). Pham Nhat Vuong, a member of Vincom’s management board, cut his holding in the company to 3.3 percent from 5.4 percent, according to a statement posted on the exchange’s website late yesterday.

Saigon Telecommunication & Technology Corp. (SGT), known as SaigonTel, rose VND800, 3.02 percent, to close at VND27,300 ($1.56). Major shareholder Nguyen Thi Kim Xuan increased her stake in the company to 6.64 percent from 5.33 percent, the exchange said in a statement on its website late yesterday.

Saigon Fuel Joint-Stock Co. (SFC) advanced VND2,000, 4.2 percent, to VND50,000. Phu Nhuan Jewelry Joint-Stock Co. plans to buy 140,000 shares to increase its holding to 24.8 percent from the current 20.7 percent, according to a statement on the exchange’s website. The purchase will start Jan. 7 and completed Jan. 22.

Doan Xa Port Joint-Stock Co. (DXP) gained VND1,000, or 4.7 percent, to VND22,500. The company’s estimated 2008 pre-tax profits will more than double to VND32 billion, the exchange said in a statement.

Thong Nhat Rubber Joint-Stock Co. (TNC) rose VND400, or the maximum 5 percent allowed by the exchange, to VND8,400. Vietnam will reduce rubber exports by as much as 31 percent, equal to 200,000 metric tons this year to boost prices and help local producers ‘survive when the global economy hasn’t shown signs of recovery,’ Vietnam
Rubber Association said in a statement on its website late yesterday.

The smaller market in Hanoi made a positive move, with the HaSTC-Index rising 1.75 points, 1.69 percent, to end the day at 105.53.

Reported by Thieu Gia

The Industry and Trade Ministry has proposed that the government delay a plan to raise coal and electricity prices this year in order to support economic activity amid the economic downturn.

“The domestic markets continue to face numerous difficulties with buying demand remaining low and production stagnant,” online newspaper VietnamNet (www.vnn.vn) quoted the ministry as saying in the proposal.

The rise in coal and electricity prices, therefore, would “intensify the pressure to increase prices of other goods, making it even more difficult to boost consumption,” the report said.

Vietnam had planned to increase retail coal and power prices by up to 20 percent in 2009 to raise funds for more power plants.

It plans to generate about 83.3 billion kilowatt-hours of power this year to support an economy targeted to grow by 6.5 percent.

The country has for many years been strained by chronic power shortages. Last week, however, Deputy Industry and Trade Minister Bui Xuan Khu said Vietnam now had more power than it needed as demand had slowed due to the economic downturn.

The government provides subsidies for power consumption, especially in rural areas.

Source: TN, Agencies

HSBC Holdings Plc, Europe’s largest bank, plans to open eight new outlets in Vietnam following the launching of its wholly foreign-owned subsidiary in Ho Chi Minh City Monday.

Before it converted to HSBC Bank (Vietnam) Ltd. on January 1, HSBC had two branches in Vietnam, one in HCMC and one in Hanoi, the bank said Monday.

HSBC Bank (Vietnam), the country’s first locally incorporated foreign bank, has a chartered capital of VND3 trillion (US$170 million).

“Our ability to locally incorporate is a tangible example of the government’s willingness to welcome foreign investment to Vietnam,” Thomas Tobin, the head of HSBC’s business in Vietnam, said in a statement.

Despite the global economic slowdown, “it is a good time for us to show our good services to customers,” Tobin told Thanh Nien Daily.

A bank official said HSBC Bank (Vietnam) has hired and trained more than 400 staff for the expansion, increasing its labor force to 1,000 in Vietnam.

Last September, HSBC and Standard Chartered Plc. were the first foreign banks to win licenses to set up fully owned operations in Vietnam. Australia and New Zealand Banking Group, South Korea’s Shinhan Bank and Malaysia’s Hong Leong Bank Bhd. later received similar approvals.

Reported by Thanh Nien Staff

More than 100 travel agencies, hotels and transport service providers have pledged to slash prices by 30 to 50 percent for foreign travelers in Vietnam’s largest-ever campaign to boost tourism.

The Vietnam National Administration of Tourism (VNAT) is also seeking a tax cut for hotels and travel companies that offer discounts to foreign travelers, the association said at a press conference in Hanoi Monday.

VNAT said 37 international travel agencies, 61 hotels, three transport service providers and 14 shops had joined the “Impressive Vietnam” campaign, promising to cut prices on 99 tour packages offered to foreign visitors, mainly from France, Australia, China, Japan and Southeast Asia, between January and September.

Vietnam will also intensify tourism promotion activities on the internet, in the media and in major markets such as China, South Korea and Japan. The nation’s tourism authorities will also invite international travel companies and the media to visit the country, organize tourism events and improve the quality of tourism services.

VNAT has proposed that the government help firms lower prices by halving the value-added tax for travel agencies, hotels and restaurants to 5 percent, cutting corporate income tax by 30 percent to firms offering inbound tour services and extending their corporate tax payment deadline by nine months.

The number of international arrivals to Vietnam rose 0.6 percent last year to 4.25 million, according to the General Statistics Office. The country had set a target of receiving 5 million visitors.

While more tourists came from China, Australia and the US last year, the number of visitors from other important markets, including Japan, South Korea and Taiwan, declined 6 percent, the office said.

Vietnam’s tourism sector, which employs more than 10 percent of country’s workforce, would face zero growth or even worse in 2009, according to the tourism ministry.

However, under a VND25.8 trillion (US$1.5 billion) plan to revitalize the sector, VNAT aims to attract up to 4.5 million foreign travelers this year.

VNAT has recommended the government arrange visa exemption for visitors from Australia, France, Germany, China and England, as well as continue the streamlining of visa granting procedures.

Under the plan, the government would also grant low-interest loans to tourist infrastructure projects where construction or enhancement work has been halted because of the economic slowdown.

Reported by Ngan Anh – Thu Hang

The VN-Index slid 1.43 points, or 0.46%, to close at 311.91 on Jan. 5 as trading remained sluggish. Volume on the HCM Stock Exchange was only 7.3 million shares, worth VND190.6 billion ($11.2 million).

Saigon Securities Inc (SSI) was the most active share on the day, although with only 717,000 traded.

Hanoi Securities wrote in a report on Jan. 5 that official policies issued to stabilise the economy and support market growth had failed to motivate investors.

“Actual moves show that mixed developments will continue in the short term,” the report said. “With foreign clients accelerating purchases over the last few weeks, investors should have a more long-term view.”

Foreign investors were net buyers of 710,000 shares in Jan. 5’s trading, with a net value of VND26.3 billion ($1.5 million).

EuroCapital Securities analysts said that the domestic economy in 2009 would see significant impacts from the global economic downturn, especially reflected in slowed growth of gross domestic product, exports and business performance.

These conditions would hinder stock market development, they said, predicting further monetary and fiscal policies related to interest rates, exchange rates and taxes to be applied this year in an ongoing effort to stabilise the economy as well as the stock market.

Trang An Securities chairman Le Ho Khoi said this year would offer opportunities to securities investors as share prices have slumped deeply. Meanwhile, gold and foreign currency markets were still fraught with risks, and the real estate market remained stagnant.

“Of course, investors should only expect reasonable profit levels,” Khoi cautioned.

Vincom Securities chairman Dinh Quang Nuong said that capital flows into the domestic stock market this year were “an unknown”, noting that 2008’s ups and downs had made domestic investors highly cautious, while “foreign investors had many concerns outside Vietnam.”

“In 2009, the stock market may not growth strongly, but it will develop in depth,” said Nuong. “Market development is not reflected only in stock indices, but also in investor experience.”

In Hanoi, the HASTC-Index closed 0.66% lower at 103.78 points on a trading volume of 3.4 million shares and a turnover of about VND68 billion ($4 million). Most-active share Asia Commercial Bank (ACB) generated orders for only 585,000 shares.

(From vnanet.vn)

The Bank for Investment & Development of Vietnam, Vietnam’s second-biggest lender, will offer VND31 trillion (US$1.77 billion) in funds to help the slowing economy, according to a statement on the bank’s website Monday.

The state-owned lender, known as BIDV, plans to allocate VND16 trillion for a fund to stimulate investment and consumption, and VND15 trillion for an export-promotion package.

The bank has submitted to the government a proposal to establish the fund and the package, it said, without providing details. BIDV’s Deputy Chief Executive Officer Phan Thi Chinh said she couldn’t immediately comment on the plan when contacted by Bloomberg News.

Vietnam’s economy grew 6.2 percent last year, the slowest pace since 1999, according to the General Statistics Office. The expansion fell short of a government target of 6.7 percent.

Source: Bloomberg

Trading on the stock market has been quiet since the Personal Income Tax Law came into effect.

Under the law, which came into effect on January 1, stock investors must pay either 0.1 percent of the value of each transaction or 20 percent on their net profit for the year.

According to the Ministry of Finance’s Circular No. 84, those who registered to pay 20 percent on the year’s net profit still have to pay 0.1 percent of each sale, with any excess tax paid to be refunded at the end of the year.

Brokerages said most of their clients opted to pay tax on each sale. Minh, an investor at a Ho Chi Minh City-based brokerage, said he registered to pay 0.1 percent on every sale because the other method was “too complicated”.

Monday, only 7.3 million shares changed hands, compared with the daily 2008 average of 11.8 million.

A new 5 percent tax on share dividends is causing the most concern for investors, not the 0.1 percent of every sale, said Truong Duy Khiem, branch director of ACB Securities Co.

Many brokerages offered special deals to their clients after the law came into effect. An Binh Securities Co. will pay its clients’ capital gains tax for the first three months of the year. Orient Securities Corp. will pay 80 percent of the tax on transactions worth VND5 billion (US$287,000) or more in a month.

For investors who registered to pay 20 percent on the year’s net profit, the HCMC -based brokerage will offer free advice on preparing for the tax payment.

TRICKY TAX

Many investors said they want to know how much they have to pay if they sell shares of one company at various prices at various times.

Tran Thi Le Nga, an official from the Ho Chi Minh City Tax Department, said investors who registered to pay 20 percent on the year’s net profit will have to keep detailed records of their stock transactions.

If they don’t, the tax will be calculated on average sales of that stock, she said.

Reported by Mai Phuong

Gold increased by about VND40,000 (US$2.28) per tael yesterday morning to as high as VND18 million ($1,028) due to increased demand from buyers.

At 5pm yesterday, the global spot price for gold was down to $862.50 per ounce. By late afternoon it began to decrease.

At Bao Tin Minh Chau Jewellery Company (BTMC), gold traded at about VND17.90-18 million ($1,022-1,028) per tael.

The Sai Gon Jewellery Company (SJC) listed the buying-selling price at VND17.88-17.94 million ($1,021-1,025) per tael, up by VND30,000 yesterday morning.

Phu Quy Jewellery Company traded SJC gold brand at about VND17.88-17.97 million ($1,021-1,026) per tael.

The price increased to VND18.45 million ($1,054) at the Asia Commercial Bank’s Gold Trading Bourse yesterday. The morning’s orders totalled 53,540 taels worth VND983 billion ($56.17million).

Several Ha Noi gold dealers reported the volume of buyers was higher than sellers yesterday morning but gradually lowered by late afternoon.

BTMC staffer Nguyen Huu Dang said: “Obviously, local gold prices were matching the upward trend of global ones in the morning due to the rumour about increasing tension in the Middle East. Investors are so sensitive. They were taking advantage of prices.”

“In fact, together with tension in the Middle East, forecasts about increasing gold prices in 2009 were encouraging investors to buy gold again,” he said.

But investors dashed to the gold shops to sell in the late afternoon amid speculation about falling prices.

Global gold prices slipped slightly as a stronger dollar cashed in on the speculation. Gold is often bought as an alternative investment to the dollar and tends to move in the opposite direction to it.

At 5 PM yesterday, the global spot price for gold was down to $862.50 per ounce, from $871 early afternoon.

(From vietnamnet.vn)

Prime Minister Nguyen Tan Dung has given the go-ahead to the Hanoi Securities Trading Centre (HASTC) to turn itself into the Hanoi Stock Exchange.

The Hanoi Stock Exchange will operate under the model of a State-owned one-member limited liability company, according to the Prime Minister’s Decision 01/2009/QD-TTg.

The stock exchange has a charter capital of VND1 trillion (roughly VND58.8 million), including the amount of capital transferred from the HASCT.

It will inherit all rights and obligations from HASTC as well as fulfill those set out in the Securities Law and the Enterprise Law.

(From vnanet.vn)

With the dong weakening by 3% last month - and by 8.5% in 2008, the biggest annual slide since 1998 - foreign investors have returned to the stock market but to buy bonds.

Foreigners, after keeping out for months, returned to the market last week to buy bonds worth VND600 billion (USD34.5 million) to take advantage of a weakening dong.

“The key rate [which guides banks’ deposit and lending interest rates] is set to drop further. Therefore, investing in bonds that offer a yield of around 9% is a good idea,” the director of an investment fund, who asked not to be named, said.

But it does carry a high level of risk since the dong is weakening, he warned.

The State Bank of Vietnam cut interest rates for a fifth time last month to ward off the global financial crisis and boost growth. The key rate fell to 8.5% from 10%.

Commercial banks are allowed to set interest rates at a maximum of 50% above this rate.

The central bank last month also allowed the dong to weaken by 3% against the dollar to boost exports, as the economy expanded at its slowest pace in nine years and the trade deficit widened.

The dong was at VND17,483 a dollar in Hanoi last Friday, according to data compiled by Bloomberg.

It dropped 0.3% last week and 8.5% in 2008, the biggest annual slide since 1998.

While foreign players seem to have switched to bonds, domestic financial firms remain confused about the choice of asset class.

Commercial banks are hesitating to buy bonds since they mobilized a huge amount of deposits at up to twice the bond interest rates early last year.

Analysts said a VND500 billion issue last month by the Vietnam Bank for Investment and Development for the government had few buyers as banks shunned bonds.

At least USD2 billion worth bonds are expected to be issued this year. Prime Minister Nguyen Tan Dung told Ho Chi Minh City authorities that the government is likely to allow the city to raise USD1 billion through bonds to speed up infrastructure projects.

But financial firms, including commercial banks, brokerage and investment funds, said the key rate’s moves are worrying. “[It] surged unexpectedly and is now being lowered sharply. We would rather deposit our money in the central bank or in the interbank market than in bonds,” the general director of a commercial bank, who wished to remain anonymous, said.

(Source: TBKTSG)

VietNamNet Bridge - The seafood industry needs more powerful vessels to exploit distant fishing grounds - and more involvement between fishermen and State officials making the rules governing the industry.

Most Vietnamese fishing vessels are made of wood, so they do not last long.

Head of the Department of Fishery Resources Exploitation and Protection Chu Tien Vinh said there were 117,778 fishing boats, most of them registered.

However, about 80 per cent had less than 90 horse power and must operate close to shore.

This meant that small and low quality fish often accounted for 40-50 per cent of each catch.

Most Vietnamese fishing vessels are made of wood, so they do not last long. Most of their engines are old, which reduces safety.

Shortcomings

Vinh said State management of fisheries had many shortcomings. First, State registration and examination of vessels was slack, so it was difficult to control numbers.

He said there were too many small fishing boats working close to shore - and their numbers rose by about 2,000 a year.

Second, most fish and shrimp caught were small and of low quality.

Third, relations between the fishermen and State management offices was weak. There were about 500 seafood co-operatives with nearly 20,000 members. However, Vinh said this was only 3 per cent of the total number of fishermen in Viet Nam.

Fourth, there were still many problems relating to security and safety on the sea, he said.

At present, the Department of Fishery Resources Exploitation and Protection and its 36 branches in provinces manage fishing boats.

However, most branches have only one or two patrol ships and many local staff have not been trained in the laws governing fishing vessels.

Vinh said fishermen tended to think that regulations covering fishing were not close to reality, so they often ignored them.

But if the authorities allowed fishermen to participate in making the regulations, they would be more careful in complying with them, he said.

Vinh also said the State should issue fishing licences to effectively control the industry and that fishermen’s organisations should be more closely involved.

He said the organisations would be a bridge linking State’s management offices to the fishermen.

(Source: Viet Nam News)

VietNamNet Bridge - The seafood industry needs more powerful vessels to exploit distant fishing grounds - and more involvement between fishermen and State officials making the rules governing the industry.

Most Vietnamese fishing vessels are made of wood, so they do not last long.

Head of the Department of Fishery Resources Exploitation and Protection Chu Tien Vinh said there were 117,778 fishing boats, most of them registered.

However, about 80 per cent had less than 90 horse power and must operate close to shore.

This meant that small and low quality fish often accounted for 40-50 per cent of each catch.

Most Vietnamese fishing vessels are made of wood, so they do not last long. Most of their engines are old, which reduces safety.

Shortcomings

Vinh said State management of fisheries had many shortcomings. First, State registration and examination of vessels was slack, so it was difficult to control numbers.

He said there were too many small fishing boats working close to shore - and their numbers rose by about 2,000 a year.

Second, most fish and shrimp caught were small and of low quality.

Third, relations between the fishermen and State management offices was weak. There were about 500 seafood co-operatives with nearly 20,000 members. However, Vinh said this was only 3 per cent of the total number of fishermen in Viet Nam.

Fourth, there were still many problems relating to security and safety on the sea, he said.

At present, the Department of Fishery Resources Exploitation and Protection and its 36 branches in provinces manage fishing boats.

However, most branches have only one or two patrol ships and many local staff have not been trained in the laws governing fishing vessels.

Vinh said fishermen tended to think that regulations covering fishing were not close to reality, so they often ignored them.

But if the authorities allowed fishermen to participate in making the regulations, they would be more careful in complying with them, he said.

Vinh also said the State should issue fishing licences to effectively control the industry and that fishermen’s organisations should be more closely involved.

He said the organisations would be a bridge linking State’s management offices to the fishermen.

(Source: Viet Nam News)