Expert predicts inflation at single-digit rate in 2012

Fiachra Mac Cana, managing director and head of research of the Hochiminh City Securities Co. (HSC), told a meeting with investors last Friday that 2012 inflation would be around 10 percent or so, as money supply has been choked off and the pressure on price increase has abated. The global growth is slowing down so there is no much pressure on prices, and furthermore, the credit growth and money supply growth have come down substantially this year, he said.

Cautious rate rise on cards

The announcement dispels doubts that the government will ease monetary policy which could blow up already high inflation rates. “The government determines to cap the credit growth this year at 20 per cent and money supply growth at 16 per cent in accordance with Resolution 11,” said Vu Duc Dam, Government Office chairman.

PPP projects slow to gain sufficient traction

Last November, Prime Minister Nguyen Tan Dung adopted a decision regulating the implementation of pilot PPP projects in a bid to encourage private investors to engage in infrastructure development. PPP involves collaboration between the government and the private sector in carrying out projects with social benefits. Both sides share the responsibilities and risks of such projects. The government now allows PPPs in nine sectors including airport and seaports, energy, roads, railway, water supply, healthcare and urban transport.

No power cuts in May, ministry orders

According to the ministry’s Electricity Regulatory Authority, with water levels rising at hydropower plant reservoirs and new power sources coming online, the pressure on power supply should ease in May and June. It also said Vietnam has increased power purchases from China by around 100 million kilowatt-hours per month starting April.

US dollar supply for banks on increase

Supply of US dollar is increasing strongly at commercial banks, showing that both enterprises and residents have boosted sales of US dollar to banks. This directly has made US dollar/dong forex rate continuously corrected.

Prudent staff retention amid price turbulence

With the economy slowing, inflation heating up and on a squeeze on the supply of skilled labour, firms are advised to spotlight nurturing their image as good employers to retain talent. Nguyen Thi Van Anh, managing director of Vietnam’s leading executive recruitment firm Navigos Search (formerly known as Navigos Group) discusses this issue with VIR.

A rushed exit from greenbacks looming

According to the International Monetary Fund, if foreign currency deposits in the total money supply (FCD/M2) of any economy exceeded 30 per cent, it meant the economy was in dollarisation. In Vietnam, the ratio, after peaking at 41.2 per cent in 1991 due to hyper inflation, has been fluctuating between 20-30 per cent since then.

Flexibility key to tackling climate change

The two-day workshop, titled "Towards a Mekong Delta Plan", brought together policy-makers and hundreds of experts from the two countries in the presence of Dutch Crown Prince Williem-Alexander, who has been on an official visit to the country. Workshop participants discussed different options to optimise plans for the Delta relating to many areas including the predicted rise in sea levels, salinity intrusion, drought, insufficient supply of fresh water, agricultural and aquaculture production as well as urban development.

Rice price to be kept stable

Truong Thanh Phong, general director of Vinafood 2, said the company would build one more warehouse to add to the one in Binh Chanh District which has a capacity of 4,000-5,000 tonnes. It also has a warehouse each in Long An and Tien Giang Provinces that will supply rice to the City in an emergency.

Petrol business - a burning issue

At a recent online conference held by the Ministry of Industry and Trade (MoIT), many petrol wholesalers across the country mentioned a host of difficulties in petrol business management. The Director of the Ba Ria-Vung Tau Department of Industry and Trade, Tran Thi Huong said during the time of adjusting petrol prices, several petrol stations had to close, leading to a drop of 70 percent in petrol supply.

Complaints lead to water review

Under Decision No 117 dated July 11, 2007, every household has to pay a monthly minimum fee of VND16,000 (USmodule_ussslot1_2_1_2_1_data.8), equivalent to four cubic metres of water, to their water suppliers. This is the first legal document on water supply in Viet Nam following the Government allowing water suppliers to operate as businesses. Generally, the fee itself is not a major sum to concern locals, but those not consuming the regulated volume believe they should not have to pay the basic charge.

Export of aquatic products rises 2.3% in January

Experts said that the global demand for aquatic products will continue surging while supply shrinks in some countries which make it possible for Việt Nam to secure the export value of these products at US $5 billion this year.

Vietnamese developer plans to buy US properties

The joint venture, expected to be set up in California, will focus on real estate trading, said Tran Quang Truong, deputy general director of Tanimex. As the two other partners are in the food and garment business, the venture will also supply goods for supermarkets in California and other Asian retailers around the US, he said.

Banks ordered to suspend service of converting into $2 banknote

According to a banking official, supply of small changes to meet commercial banks’ year-end demand is not short, but SBV’s message is not to boost banknotes with small face value in circulation. Factually, the Central Bank always provides different kinds of banknotes with different face value to commercial banks who then will meet customers’ need. Consumers’ demand for small changes for lucky money in Lunar New Year is available with a purpose of giving lucks to receivers.

Vinapco to cough up

After a dispute over a price increase, JPA had its fuel supply cut off by Vinapco on April 1, 2008. This caused a delay that grounded 30 flights with some 5,000 passengers affected. The government intervened and ordered Vinapco to resume supplying fuel to JPA. The state-owned airplane petrol supplier was also fined more than VND3.3 billion ($165,000) for violating the nation’s Competition Law, which was calculated based on the percentage of Vinapco’s turnover in 2007 and would be handed to the state coffers.

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