Banks open doors wide, but few securities investors entering

Commercial banks have resumed loaning to fund securities investments, but they have not attracted many clients. Securities investors seem to be indifferent.

Banks have been pushing up loans

HDBank has announced a package of VND400bil ($23.5mil)it plans to loan to fund securities investments with securities themselves being the mortgaged assets. The VND400bil is part of a plan on disbursement for consumer credit worth VND900bil ($52.91mil). The lending interest rate is about 1.2% per month on average.

Eximbank is lending to securities investors at the interest rate of 0.833% per month only, equal to the interest rate applied to consumer loans, though funding securities investments is considered risky. Clients can borrow sums not higher than 30% of the securities’ market values.

Besides loaning to fund house and car purchases in installments, Tien Phong Bank also provides loans to fund securities investments at the interest rate of 10.5% per annum. Its clients can also borrow sums equal to 30% of securities’ market values for 12 months. However, borrowers must not have had bad debt at the bank in the previous 12 months.

Unlike previously, when banks hesitated to give loans to securities investors, they are now opening their doors wide to investors. It is because they now have profuse capital and they need to push up loaning.

However, despite the efforts by banks, loans to fund securities investments just account for a small proportion of their total outstanding loans. As the stock market has been falling, investors are hesitant to make investments with loans.

While banks have been pushing up loans, securities companies have also been trying to push up services, like repo service, to attract more investors. However, according to Nguyen Viet Hai, General Director of ACB Securities, though the capital reserved for repo service is profuse, and the repo service fee has been decreasing, it is still difficult to attract clients.

Representatives of Thang Long Securities Company (TSC) also say that the number of clients using repo service has dropped significantly since the beginning of 2009.

Analysts have said that in the current conditions, though the banks’ doors are open wide, clients will remain uninterested in loans as they will be under pressure to pay debts to banks on time while there is no sign that the market is on its way to recovery and stock prices are increasing.

Black market price for the dollar climbs

A single dollar cost as much as VND18,000 on the street on Friday.

The price represented a VND200-300 depreciation against the dollar within a day and a VND350-450 fall since Thursday morning.

Gold shops on Ha Trung and Tran Nhan Tong streets, Ha Noi, bought a single dollar at VND17,750-17,800 and sold at VND17,950-18,000.

The rate at small shops ranged from VND17,600-17,750.

In the non-deliverable-forward, or NDF, market – where investors anticipate the value of currencies – the monthly cost of the dollar was expected to rise to VND18,300 within three months – up VND700 against late last year – and VND19,200 within six months.

The dollar is expected to cost VND19,900 by December.

But the State Bank of Viet Nam reduced the daily inter-bank exchange rate by VND3 to VND16,974 on the mandated market.

Vietcombank’s buying and selling price was the same at VND17,483 and the exchange rates at commercial banks remained at the upper limit of the adjustable peg.

The Vietcombank’s rate at the end of 2008 was VND17,494 compared with VND16,025 the previous year.

Several bankers described the demand for the dollar as normal.

"Purchasing power in the domestic market is not growing and demand from enterprises to pay for imports remains limited," said Asia Commercial Bank deputy general director Nguyen Thanh Toai.

The currency, at its most volatile, had ranged between VND15,825 and VND17,495 throughout last year.

Why the high price?

So why the high price on the street?

Senior economist Le Dang Doanh believes that both business and individuals are seeking safety in the dollar.

Others believe the Government decision, announced last Friday, to issue bonds denominated in the dollar to fund key national projects and help offset the budget deficit has added to the currency’s popularity.

People believe policy makers will allow the depreciation of the domestic currency to make the bonds more attractive.

As PXP Viet Nam Asset Management’s Kevin Snowball explained: "Investors will buy bonds if the foreign currency is stronger because they’ll make money.

"They won’t buy bonds if the foreign currency is weaker because they’ll lose money."

Also gold traders, who sold to take advantage of the high international price for the precious metal, are turning their dong into the dollar because the interest banks now offer for deposits is not as attractive as several months ago.

The likelihood that the interest paid for dong deposits will fall as low inflation in Asia, including Viet Nam, allows the central bank to further reduce the interest rate also promotes the dollar.

In addition, the Harvard Kennedy School of Government and some international banks have advised a further, orderly depreciation of the dong this year to boost exports and narrow the trade deficit.

Then, as Asian stocks slide and insolvent banks face the prospect of public ownership, investors are choosing the safety of the dollar, US Treasury bonds and gold.

And many bankers agree, the Government is unlikely to intervene in the market.

Hot gold

Gold jumped slightly to VND19.67 million (US$1,130) a tael yesterday, up VND20,000 per tael against late Thursday.

The price followed the world price for the precious metal, which had reached $978.20 an ounce – up $4.80 and its highest for more than six months.

A tael equals 1.2 troy ounces.

On the Sai Gon Gold Trading Exchange in Ha Noi, gold cost VND20.47 million ($1,133) per tael.

In Ha Noi, the Phu Nhuan Jewellery Co, PNJ-DAB, the buy-sell price for gold leaf was VND19.58/19.66 million ($1,125-1,129) per tael.

At Bao Tin Minh Chau Jewellery Co (BTMC), gold traded at about VND19.54/19.62 million ($1,122-1,127) per tael while at the Sai Gon Jewellery Holding Co, it was about VND19.60/19.67 million ($1,126-1,130) per tael.

Sellers, who offered not only gold leaf but also gold jewellery, heavily outnumbered buyers in the morning and early afternoon.

Viet Nam Gold Trading Association member Tran Quoc Quynh forecast that domestic gold prices would increase during the next few days because of the international trend upward.

It could plateau at $1,050 per ounce because of the heavy demand in the US, Russia, China, Switzerland and France, he said.

blogs

Blog is a website to communicate with your friends and your family.It is not compulsory writing every day. We write entries when we have interesting.We don't care another people are talking about our entries.I just heard a good sentence from Mr.long:"Daily blog means not today!"How do you feel about that sentence? Is it true or not? I think some one will tell it is stupid but we must enjoy our life .There are a lot of interesting outside,so don't be stupid to sit in your room all day for writing daily blog...hehehe I think I will escape because tomorrow one guide will kill me,if he knows this entry =.= bye ...

I Love Living Life. I Am Happy.

I am really admire that man.He makes me love my life more=.=If you were him,could you do like him???He is a big idol of me.I can't alive if I was him...

Government units to tackle labour disputes

The Vietnamese government is stepping up efforts to address labour disputes by establishing specialised industrial relations units nationwide.

Last week, the government permitted the establishment of the Industrial Relations Centre, the first of its kind, under the Ministry of Labour, War Invalid and Social Affairs’ (Molisa) managerial umbrella. It will be run with state financial support.

Following the establishment of the Centre, city and province-based sub-centres are to follow, ensuring the Centre’s responsibilities are met and all enterprises nationwide reached.

Nguyen Manh Cuong, a Molisa senior official, who is the founder of the Industrial Relations Centre, said that industrial relations units would act as a third party, playing the role of mediator and helping to settle labour disputes arising between employers and employees.

“The units will also provide technical assistance and training in association with industrial relations if needed. They will forecast and analyse industrial relations, giving the results to government agencies and organisations, as well interested employers,” Cuong said.

The establishment of such units is among the Vietnamese government’s moves toward better resolving labour disputes, a problem that foreign investors have said hindered their business, thereby affecting the nation’s attractiveness for foreign direct investment.

Last year, Prime Minister Nguyen Tan Dung urgently asked governmental agencies and local governments of 63 cities and provinces across the nation to open regular dialogues, enhance labour policies and establish grassroots trade unions in face of rising labour strikes at foreign invested enterprises (FIEs).

Reported figures indicated that labour strikes had risen year on year, from 139 in 2003, to 147 in 2005, to 541 in 2007 and to 649 in eight months of 2008. In total, there were 2,555 strikes in Vietnam between 1995 and August of 2008, of which 72.4 per cent occurred in FIEs. Most strikes were reported in the nation’s industrial hubs of Ho Chi Minh City, Binh Duong and Dong Nai.

Reasons for strikes, many of which were unprompted, include low wages, excessive overtime hours, unpaid social insurance and lack of communication between employers and workers.

Ou Cheng Ming, vice president of the Taiwanese Electrical and Electronic Manufacturers’ Association (TEEMA), a group of 3,800 company members with giants like Foxconn and Compal, said that labour strikes in Vietnam would make Taiwanese investors reluctant to enter the country.

Meanwhile, although Vietnam has been ranked as the third most promising investment destination for Japanese investors in the next three years by the Japan Bank for International Cooperation surveys, labour-related issues like rising labour costs are raising concern about Vietnam’s investment climate.

“I have seen the Vietnamese government actively moving to address our labour problems since the middle of the year, and this is a positive signal for us to look favourably upon Vietnam,” said Ming, who received an investment certificate to build a $35 million electronic part manufacturing plant in the north of Vietnam two weeks ago.

Following the prime ministerial directive on industrial relations last year, Molisa would have to improve labour policies including those governing the payrolls of FIEs to more clearly regulate the wage levels of unskilled and skilled workers.

The Ministry of Planning and Investment would head the organisation of regular talks with foreign investors, especially employers, using Vietnamese workers in industrial and export processing zones to more quickly address the issues.

Concurrently, local governments of cities and provinces across the country must also set up labour - related taskforces.

yeah

Finally, I finished my economic homework.It is really hard working...haiz...I hope you receive that, Mr.Chris! heheheeh

Handy back-up power packAn easy-to-carry and affordable power supply for re-charging your USB gadgets! So how many times has this happened to you? Yo

An easy-to-carry and affordable power supply for re-charging your USB gadgets!

So how many times has this happened to you? You're driving down the road (or you're cruising on the boulevard or what have you) and suddenly - your cell phone dies. (Okay, it's not exactly sudden since most cell phones will give you an ample "low battery" warning, but it certainly feels sudden). This is no fun. However, if your electronic device charges via USB you might be in luck.

The Portable USB Power Supply allows you to take some USB power with you when you travel around. It plugs into any wall outlet and can simultaneously charge up to two USB devices, but it also charges its own built-in batteries. Then when you take it with you, you'll have a nice supply of USB power available to re-charge your gadget that has "suddenly" died.

• Two USB ports for power
• Plugs into wall outlet to charge the internal battery
• Prongs fold-up for easier transport
• Push button battery level indicator (Green, Yellow, Red)
• Input: 100-240VAC, 50/60 Hz, .3A max, UL Listed
• Dimensions: 4" x 1.8" x 1.2" (10 x 4.6 x 3cm)

Tired

These days, I am so tired...I was sick and I can't write blog daily.It make some one be angry but I can't type how could I write???I had headache and cold...No one know what was happen with me with out me...I am upset...I will study hard in study week to follow my classmate and not be far away them...I am concentrate ...Study week is so boring...haizz,I wanne go to school, it is more fun...=.=

Tax down triggers fall in prices

The decisions to allow deferment of tax payment and reduce value added tax (VAT) on 18 categories of commodities has prompted prices of many goods and services to fall soon after they took effect on February 1.
Many enterprises nationwide have announced prices cuts of 2-6 per cent over the last two days.Eighteen categories of commodities now enjoy a 50 per cent VAT reduction, including wholly-assembled cars and car components, engines, gear boxes, coal, basic chemicals and hotel and tourism services.Hoang Quoc Tuan, deputy director of the Dong Nai Brick and Tile Co, said that thanks to the tax reduction, tile companies would not have to spend time and money on measures to boost sales in a difficult period.
Customers would also benefit as they will not have to spend as much money to buy products, he said. The reduction of VAT from 10 to five per cent has seen the prices of four-hole bricks go down from VND1,100 to VND1,045 each. The price of ceramic tiles has decreased from VND6,800 to VND6,460 each.

headache

I don't want to stay here anymore...It's so stupid ...I am boring and disappointing with my life now.I didn't study anything and homesick so much...It makes me be headache ...I am thinking a lots ...I am enough old to know I am not suitable for studying english...No one can hear me ...They are laughing when they talk to me...I know you are good at english ,so what? I don't care ...I very hate people who call me idiot and that makes another people laugh into my face ...I was very angry ...It makes me don't want study anymore ...Home sweet home is better for me...I know It is a stupid choice but I can't do anything better than it...It is a big pressure for me ,so what?Ater a long time , I can pass through that...No problem...=.=...

Businesses couting cost of snow

1.Who will be lost:

• Insurance will be lost a lots.Many houses and cars will be damaged so they will pay so much.
• Shop and supermarket will reduce customers because no one want go out to buy products.
• Government will get less tax...Export and import will be canceled because airport and train can work.
• Firms can produce because labor can go to work.Their stocks will be full because can sell or transport their products.
• School will be lost paying salary for their teachers, but they didn't go to work.
• Children will be lost their education cause of not going to school.

Who will be earned:

• Cleaners will have more job.More people need tidy their houses after snowing.
• Deliveries will be busied cause more people don't want go out , so they need delivery to have food for living...
• Taxi have more customers because people don't want to walk and buses are too late or cancel..
• Tourist will be earned because people want to see snow and have picture with that ...They think that are wonderful...
• Families will have fun with their family members because parents can't go to work and children stay at home...
  

Vietnamese economy slowing down

It happens cause credit crunch around the world...Vietnam is a export country , so GDP essential depend on export...Customers in import countries don't want to buy anything because they lost job or income goes down ...It makes their stock full of products and no customers...They don't have enough funds to control,so they will cut their labors or close their factories...It is happening in Vietnam, a lot of factories are closed ...It must make economy go down...Bank of Vietnam is doing many thing to reduce that, but They can't control that....Especial, they cut their interest rate many times...For example ,6 month ago they cut their interest rate from 20% to 14%,now from 14% to 8.5%...They want more investment ,but it isn't effected...Only having more foreign investments, local investors don't have enough confidence investment...The real action was happened their economy growth only grew up 6.5% less than their plan...I think It also is happening around the word ...They must wait until world economy recover ,if they want their economy grow up again....OMG credit crunch...haizzz!!!How long will it end????

Scientists warn of increase in magnetic storms

The number of magnetic storms will steadily increase until 2011 with possible harm to people’s health and damage to electrical systems, warns the Geology and Physics Institute.

There will be 15-20 storms this year with an intensity of 300-400nT (nano-tesla), a unit of magnetic density.

Institute director Dr Ha Duyen Chau says the storms will not severely affect electrical distribution but capacity could be lowered when they occur.

Electricity and oil pipeline managers should monitor information so they can take preventative measures, he says.

Radio waves can also be disrupted.

“Unfortunately we can’t say for sure in which months the storms will occur and although we can predict the possibility of a storm one or two days before it happens, we can only know for sure 30 minutes before it strikes,” he explains.

The past two years have been quiet with just 10 storms per year, Dr Chau says.

The sun’s operative cycle is 11 years. The last peak was in 2001 and the next will be in 2012. At that time, about 40-50 500-600nT storms can be expected.

“We can’t exclude the possibility that it will affect Vietnam’s Vinasat-1,” he says.

“We are powerless against the storms but we can understand them and thus avoid their effects.”

People who suffer from heart disease, high blood pressure and psychological disorders should be aware of the storms and stay at home or travel by car during a magnetic storm.

Dr Chau says that, although magnetic storms do not usually markedly affect Vietnam, it has no concrete statistics about the damage they cause.

The institute has four monitoring stations-Hanoi’s Gia Lam District, Lao Cai Province’s Sapa, Da Lat in the Central Highlands and Bac Lieu in the south. Their tasks include recording the intensity, amplitude, frequency and duration of the storms.

Vietnam started to study magnetic storms in 1957 but the monitoring stations were not installed until after the 500KV national grid was functioning in 1998.

The institute’s statistics show the country had 40 magnetic storms in 2001 and 15 in 2006.

Magnetic or geomagnetic storms are a disturbance of the earth’s magnetic field associated with charged particles generated from solar flares and sunspots.

They usually last from 24 to 48 hours, but some have lasted many days. An electromagnetic storm disrupted power throughout most of Quebec, Canada, in 1989.

Vietnamese boy amazes Polish music circles

5 years old, Vietnamese boy Nguyen Viet Trung followed his sister to her music school. During the break, he curiously toyed with a piano in his sister’s class. Seven years later, the boy is astonishing the Polish music world.

Biuletvn Informacyiny, a reputed music magazine in Poland, writes about Trung as follows: “Nguyen Viet Trung, from Vietnam, is a young piano talent, who feels music by a pure and fresh soul. The talent of this 12-year-old boy can compare to outstanding last-year students of big conservatories of music, though he has been studying music for only six years”.

Twoja Muza, another famous music magazine in Poland, in its issue dated December 2008, called Trung “a Polish music star with clear piano talent. His hands move all hearts. He went on and off the stage, earning constant tremendous applause from the audience after playing an immortal work by Liszt”.

The article listed Trung’s awards: first prize at a piano contest for kids in Poland in 2003, the Golden Musical Note at an international contest in 2006 where contestants only played Mozart works, third prize in an international music contest in 2007, the grand prize for playing Chopin music for foreign children in Poland in February 2008.

In late 2008, Trung won second prize at an international piano contest in Poland. When Trung registered for the contest, the organisers were surprised and they thought Trung mistakenly registered. They couldn’t believe that a 12-year-old boy wanted to participate in a contest in which the youngest contestants were 16-17.

When Trung came out on the stage, the audience and jury were surprised to see the tiny boy who timidly approached the piano. With four difficult music works by J.S. Bach, F. Liszt, F. Chopin and J. Berkowicz, Trung passed three rounds of competition to enter the finals. On the final night, the concerto by W.A. Mozart, F-dur KV 413 played by Trung moved the hearts and the souls of listeners.

When Trung finished his part, the theatre was quiet for a moment, then tremendous applause broke out. The Vietnamese boy had to come back on stage several times to thank the audience.

I met him at a Christmas Eve party in Vietnam. Trung didn’t look like a serious music prodigy, but a mischievous Vietnamese boy.

“My mother anxiously waited for the results but I knew everything was okay,” Trung said about his latest contest.

“What do you mean?

“I went up to the jury area. The chief of the jury shook hands with me. He said nothing but I knew that it was good.”

“Why did you think that it was good?”

“If it was not good, why would he shake my hand?”

Trung was born in Hanoi. Before he could talk, he was sent to Poland because his father did business there. Several years later, his father and brother returned to Vietnam. Trung, his sister and mother stayed in Poland.

Trung came to music by chance. One day the 5-year-old boy followed his sister to the piano club of Professor Filomena Dziedzic. During the break, the curious boy touched a piano. The famous music professor heard the sound made by the boy. She asked him to do again.

Trung’s fingers innocently touched the keys but the soul from the piano astonished the experienced and famous professor. She told Trung’s mother about the boy’s special talent in music. Trung’s parents decided to send the boy to a local music school. Trung easily passed the test to enter this school.

After six years studying music, Trung has become famous in Poland, Hungary, Russia and Ukraine. He has his own album for sale.

“I live in Poland but my idol is Dang Thai Son,” Trung said.

It is expected that in the near future, Vietnam will have a second Dang Thai Son.

Trung will return to Vietnam to perform in a concert by young overseas Vietnamese music talents in Europe and Australia at the Hanoi Opera House on February 22, 2009. The concert, held by the National Vietnam Music Institute, will be conducted by bandmaster Le Phi Phi.

Ford U.S. sales plunge 40%

Ford Motor Co. said on Tuesday that its U.S. sales were 40 percent lower in January than a year ago, fleet sales 65 percent lower, and retail sales to individuals 27 percent lower.

Analysts believed that Ford's sales figures may kick off the industry's fourth straight monthly decline of more than 30 percent.

But the second largest auto manufacturer in the U.S. said that the January sales for itself and the overall industry were in line with company expectations, and that retail demand appears to be stabilizing.

Ford struggles to continue operations without federal assistance, which may reduce Ford Family's control. Ford burned 5.5 billion dollars in cash last quarter, and finished the year with cash reserves of 13.4 billion dollars, the company said last week in a statement.

Kangaroo method helps weak babies

Premature babies are now benefiting from a new and effective treatment at the National Obstetrics Hospital. To the delight of parents, the treatment means that babies born too early can develop as normally as babies carried to full term.

A doctor at Hue General Hospital gives special care to a premature infant.

Nguyen Thi Huong (not her real name), in Ninh Binh Province, who has renal failure, just gave birth to her baby after only 30 weeks of pregnancy. She said that she felt really happy knowing that her baby - weighing only 1.2kg - is doing well.

"My family didn’t think that he would be able to carry on because he was too small and weak," she said.

"But thanks to the doctors’ treatment at the hospital, he is now getting on well."

According to hospital director Nguyen Viet Tien, the hospital has invested in new and modern equipment and machines, and has applied new methods to treat premature babies.

"Many premature babies, even those who weigh only 0.7 to 0.8kg, have received proper treatment and are growing normally," said Tien.

Tran Thi Phuc, head of Obstetrics Faculty at the hospital, said that the new method applied at the hospital, called "kangaroo care", had proved effective when used on premature babies, even those born after just six months of pregnancy.

Kangaroo care is a form of skin-to-skin contact between a parent and their baby. The baby, wearing only a diaper, is held in an upright position against the parent’s bare chest. The baby is held this way for 20 minutes to four hours a day. This is called Kangaroo Care because it is similar to the way a baby kangaroo is snuggled against its mother.

The kangaroo care period is as long as a normal pregnancy, about nine months and 10 days.

Doan Thi Lan (not her real name) in Ha Dong District, who has heart disease, gave birth to her first baby at the age of 40, after only 28 weeks of pregnancy. Her son weighed only 0.9kg when he was born. He now weighs 1.4kg.

"His health is quite good now. The kangaroo method makes me feel safe when I can hold him in my arms. It’s really great," said Lan.

Doctor Phuc said that the causes of premature births are many and varied. Mothers too young or too old (14 - 15 years old or above 40 years old), or those with illnesses like heart diseases, high blood pressure and foetal infections may be likely to give birth prematurely.

Nguyen Thanh Ha, head of the Infant Faculty at the hospital, said that premature babies are usually born between the 26th and 36th week of pregnancy. These babies often suffer different kinds of health problems such as digestion difficulties, brain problems and weak senses like vision or hearing.

According to statistics supplied by the Infant Faculty of the hospital in 2008, the total number of babies born at the hospital was 19,618, with 2,507 babies born prematurely, 12.7 per cent of all pregnancies. Of the figure, 88 per cent went on to develop normally.

1.Cash-flow problems may be caused by:

• Sudden fluctuations in demand
• Debtors delaying payments
  
• Paying suppliers in advance
• An increase in credit rather than cash sales
  
• Mismanagement of variable costs such as wages labour and materials (stock level)

2.Cash flow may be improved by:

• Taking in new investors
• Borrowing
  
• Selling assets
• Increasing sales
• Debt factoring
• Improving credit control
  

Discouraged

Why I am here???It is a big question in my mind right now...Everything are so stupid ....I can't control my brain ,I hate my life right now...It is not me before ...I am looking like a puppet ,don't care anyone control me....I think I changed life style...Not is long before, now I am a empty ken :don't know anything...Now I can't face to face talk to teacher because I am shy and worried:"...."Remembering in the past ,I was always a star of class:like Mary or Dima...Look at me now:don't know anything,always be stupid in front of classmate...Only 1 word can describe that:"EMPTY"...=.=

Super-light 'Aircraft' (that also travels on land and water)

Nowadays, traffic congestion is a big problem of all governments around the world...They did many thing to reduce them,but they seem not effect....Why we don't design a kind of private aircraft which cheap price and can produce them popular...???We don't need to built more street and won't have traffic congestion...It is really a cool idea because sky is large so we can fly any where we want....
That invention is opening a new transport machines...It weights only 60 kilos and can have speed of 160 km/h in the air and 80 km/h on land...The aircraft is capable of traveling on land, water and air...We can use it travel any where we want....
The funds for produce that product is a big thing....It is too expensive...We can have a loan from the bank or borrow money from your friends or your family....We also need large factory to produce and have partner who have suitable material to produce our product...I think to find a partner have enough condition is also difficult...I think that idea only suitable for millionaire ...Anyways ,it is a good business idea ...=.=