USD deposit interest rates up, VND’s down

[Sponson]

I was curious to know if anyone could elaborate as to how this might affect the value of the currency, if at all. Thanks to my Dad for bringing this to my attention:


USD deposit interest rates up, VND’s down

VNECONOMY updated: 07/05/2007
http://english.vneconomy.vn/pictures/070507093708_anh061225%20kiem%20USD.jpg[/IMG]
While USD deposit interest rates have been raised by commercial banks, VND deposit interest rates have been lowered due to superfluous VND available capital...



...For deposits of less than US$15,000, the interest rates are 4.4% for three-month term deposits and 4.7% for six-month. Meanwhile, the interest rates will be 4.45% (three-month term) and 4.75% (six-month term) for deposits of more than US$15,000.
According to Dang Bao Khanh, Director of the Payment and International Banking Centre under Techcombank, banks offer higher interest rates in an effort to mobilise more capital to meet the increased demand for USD loans thanks to bustling import-export activities.

While the demand for USD loans is increasing, commercial banks cannot find capital in the inter-bank market. Therefore, they have to raise the interest rates on deposits in order to raise enough capital to loan. VND deposit interest rates down due to superfluous capital
While USD deposit interest rates keep rising, VND deposit interest rates are forecast to see decreases in some days due to the excess of VND capital.

Members of the Vietnam Banking Association (VNBA) have reached an agreement on lowering the interest rates on VND deposits, under which the ceiling levels have been set up for different terms of deposits.

The ceiling interest rates to be applied at state owned banks will be 0.6%/month for three-month term deposits, 0.63% per annum for six-month (- 0.02%), 0.65%/month for nine-month, and 0.69% for 12 month-term deposits (- 0.01%).

According to VNBA, the lowering of VND deposit interest rates proves to be unavoidable as the available capital has exceeded the demand for borrowing.


http://english.vneconomy.vn/index.php?param=article&cateid=01&id=a020b3a82106c7

[harold4187]

http://biz.thestar.com.my/news/story.asp?file=/2007/5/7/business/17598123&sec=business
Establishing foothold in Vietnam

Property Talk: By S.C. CHEAH

IREKA Corp Bhd is entering Vietnam in a big way, albeit not directly, but through a property fund called Aseana Properties Ltd (ASPL) in which it has a 20% interest.

Japanese investors get Vietnam fever

HANOI/TOKYO (Reuters) - Tadayoshi Okimoto, an auto company executive from southern Japan, rubs shoulders with dozens of Vietnamese at a brokerage in Ho Chi Minh City, excited to get a piece of Vietnam's fledgling stock
http://www.boston.com/news/world/asia/articles/2007/05/07/japanese_investors_get_vietnam_fever/market

US wants to become number one investor in Vietnam, says Zwenig

President Triet to visit U.S. late next month

U.S. delegates attend the forum in Hanoi last week
By ANH MINH

(SGT-HANOI) U.S. companies are looking to become number one foreign investors in Vietnam, said Frances Zwenig, counselor of the US-ASEAN Business Council.
http://www.saigontimes.com.vn/daily/detail.asp?muc=2&Sobao=2932&SoTT=4

London exchange pledges link with Vietnam


Lord Mayor of the City of London Alderman John Stuttard (L) makes a toast with HCMC Securities Trading Center director Tran Dac Sinh during his visit to the organized exchange last Friday
By THUY TRIEU

(SGT-HCMC) The London Stock Exchange (LSE) will seek to connect with Vietnam’s stock market to create opportunities for more Vietnamese companies to list on LSE and get equity finance, said the Lord Mayor of the City of Lo

http://www.saigontimes.com.vn/daily/detail.asp?muc=1&Sobao=2932&SoTT=1




Sunday, May 06, 2007
Looking in the Mirror: Iraq versus Vietnam
My last big Iraq/Vietnam comparison reality check was quite some time ago and was far more dismissive of and snarky at anyone who seriously equivocated the two. Roughly a year and a half later even some of our Congressmen are no longer comparing them, but outright stating they are no different.

Considering this absurdity I'm afraid that there is little I can do to save them. These are educated men. If they don't know the differences, even after having lived through both eras, they are either truly lost in the propaganda of their own agenda or just outright lying for political points. I'm sure you can guess what I'd wager.

But once again, for the non-BDS-afflicted, I offer my comparison of the two which will be far more helpful to the open minded than the zombie-like minions who will follow a politician's propaganda to the edge of insanity.


http://glock21.blogspot.com/2007/05/looking-in-mirror-iraq-versus-vietnam.html


The Real Iraq-Vietnam Connection
American Prospect


The key similarity between the two wars is how they profoundly eroded the American people's trust in their government and leaders.

My 'trust in their government and leaders' began to erode in late '63 and has been down to about nothing for many years. The Current Occupation of the White House has scattered the dust of trust to the winds. Here's why:
http://alterx.blogspot.com/2007/05/real-iraq-vietnam-connection.html


:wave:

[dinar_nabber]

can u open a bank account in vietnam? please msg me

[harold4187]

http://biz.thestar.com.my/news/story.asp?file=/2007/5/9/business/17667518&sec=business
Toyo Ink plans IPP ops in Vietnam by July




http://www.my-esm.com/showArticle.jhtml?articleID=199400147
Toshiba sets up R&D center in Vietnam
— Toshiba Corp. has become the latest Japanese manufacturer to set up shop in Vietnam, establishing an R&D center in Hanoi for the development of embedded software (http://www.my-esm.com/encyclopedia/defineterm.jhtml?term=software&x=&y=) for digital consumer products.





http://www.iht.com/articles/2007/05/08/business/dong.1-47013.php

Japanese investors see Vietnam as a sure bet


HANOI: Tadayoshi Okimoto, an auto company executive from southern Japan, recently met with dozens of Vietnamese in Ho Chi Minh City, excited by the chance to get a piece of Vietnam's nascent stock market.



I am goint to Wells fargo today and try to snag 4 mil.:huge:

[Garf]

http://www.thanhniennews.com/features/?catid=10&newsid=27626

Japanese firms flock to booming Vietnam

Fueled by the latest investment boom, Vietnam is one of the world's fastest-growing economies. Japanese companies are swarming Vietnam’s cheap workforce, but Vietnam must still be careful to sustain growth.

The Japanese have flocked to Vietnam with massive investments, whether as a hedge against China, widely known as the China-plus-one strategy, or as a country beginning to rival the so-called BRIC emerging economies of Brazil, Russia, India and China.

[Goes4ever]

VND rate today is 16120-1 USD
a bit better than last time I looked

[harold4187]

Ngày 10/5/2007

1 USD=16 122 VNĐ

[mcdan]

http://www.xe.com/ucc/convert.cgi

[Goes4ever]

shows 16114 on the official VND site
http://www.sbv.gov.vn/home/index.asp

[harold4187]

I have noticed it is realy starting to move.

[DinarInANutHouse]

I have noticed it is realy starting to move.

Really??? I havent noticed it!:lmao:

[Goober]

The Dong's what's happenning now, better get some. 8mil and still buying. Just think, in VietNam there is no war, no insurgency, no ethnic terrorism, only business, growing and growing, A NO BRAINER!!!!!!!!!!!!!!!!!!

[Sponson]

19M and holding...

:)

[Telestar]

I have noticed it is realy starting to move.


http://www.iht.com/articles/2006/11/22/bloomberg/sxasia.php

Around the Markets: Strategist expects dong fall in 2007
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Bloomberg News
Published: November 22, 2006
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HONG KONG>en<>res<: The Vietnamese dong may fall for an 11th year in 2007 as Vietnam seeks a weaker currency to spur exports, which could raise complaints from trading partners, according to Stewart Newnham, an Asia foreign-exchange strategist at Morgan Stanley in Hong Kong.
Newnham said he expected the Vietnamese currency to decline 1 to 2 percent next year as inflation reduces the value of the currency. The central bank may allow the depreciation to keep exports competitive, he said, defying a September call by the Group of Seven industrialized nations for emerging economies with current- account surpluses to have more flexible currencies.
"It's going to drop next year," Newnham said in an interview. "There's high inflation expectations and of course they probably want to still look after exports."
The dong's decline, which makes Vietnamese goods cheaper to overseas buyers, has caused concern among exporters in other Asian countries. Thai companies are losing orders to competitors in Vietnam, Poj Aramwattananont, the president of the Thai Frozen Foods Association said last week as the baht gained 12.1 percent this year.
The dong closed at 16,098 per dollar Tuesday (this would be Nov 2006), according to data compiled by Bloomberg. The currency has fallen every year in the past 10 and lost 1.1 percent since the start of January. Newnham said it will climb sometime after 2007, without giving a specific forecast.

The Dong is moving the wrong direction as it has the past 10 years. It was at 16098 las Nov 2006 and now it is at 16144. They are depreciating the currency to push out exports. I don't see where anyone will believe it will R/V. This would be totaly opposite to holding it low for exports. Where is this information wrong and why does anyone believe it will R/V?:wave:

[Dinarzilla]

To heck with the so-called experts!!! Go with yer gut!!!

[Sponson]

The Dong is moving the wrong direction as it has the past 10 years. It was at 16098 las Nov 2006 and now it is at 16144. They are depreciating the currency to push out exports. I don't see where anyone will believe it will R/V. This would be totaly opposite to holding it low for exports. Where is this information wrong and why does anyone believe it will R/V?:wave:

Vietnam the Second Thailand

Thursday, April 26 2007 @ 02:19 AM EDT
Contributed by: news (http://farang.pai-nai.com/users.php?mode=profile&uid=4)

http://farang.pai-nai.com/images/topics/topic_news.gif (http://farang.pai-nai.com/index.php?topic=General)The VND, the currency of Vietnam, the fastest growing economy in Southeast Asia, has been drawing the special attention of derivatives traders....

...DBS group and ANZ bank have begun making transactions abroad with the contracts linked to the future value of the VND. The contracts worth $50mil that trade monthly may be double in a year, according to an estimate by Standard Chartered Bank.

Vietnam has lessened monetary controls this year and has announced its plan to push up the selling of state owned assets. The new currency market will give investors more opportunities to gain profit in the economy, which saw the growth rate of 7.7% in the first quarter, and the figure may reach 8.3% this year as forecast by the Asia Development Bank.

According to Peter Soh, Foreign Exchange Director in Singapore under DBS group, the biggest bank in Southeast Asia, all believe that Vietnam will follow the path China has gone, and that the VND will increase in value.

http://farang.pai-nai.com/article.ph...econd-Thailand

:)

[Telestar]

Vietnam the Second Thailand

Thursday, April 26 2007 @ 02:19 AM EDT
Contributed by: news (http://farang.pai-nai.com/users.php?mode=profile&uid=4)

http://farang.pai-nai.com/images/topics/topic_news.gif (http://farang.pai-nai.com/index.php?topic=General)The VND, the currency of Vietnam, the fastest growing economy in Southeast Asia, has been drawing the special attention of derivatives traders....

...DBS group and ANZ bank have begun making transactions abroad with the contracts linked to the future value of the VND. The contracts worth $50mil that trade monthly may be double in a year, according to an estimate by Standard Chartered Bank.

Vietnam has lessened monetary controls this year and has announced its plan to push up the selling of state owned assets. The new currency market will give investors more opportunities to gain profit in the economy, which saw the growth rate of 7.7% in the first quarter, and the figure may reach 8.3% this year as forecast by the Asia Development Bank.

According to Peter Soh, Foreign Exchange Director in Singapore under DBS group, the biggest bank in Southeast Asia, all believe that Vietnam will follow the path China has gone, and that the VND will increase in value.

http://farang.pai-nai.com/article.ph...econd-Thailand

:)

Thank you myjag99 for your supported response, this helps. I'm a little ignorant on the "path China has gone". Do you have any more details to help understand when this turn about may happen and what the indicators might be? An informed investment stands a chance of success. Thank you again for the info and enjoy your day!
:wave:

[Sponson]

Vietnam joined the WTO on Jan. 10 of this year:

http://www.thanhniennews.com/politics/?catid=1&newsid=24080

and they seem to be doing really well:

http://vietnamnews.vnanet.vn/showart...um=06ECO040507

Stories abound as to their success and so for all of these reasons and perhaps a few more that I don't know of, the speculation is that they will at least increase the value of the VND or reval.

I bought in as a pure speculation play with long-term aspirations of currency appreciation. Of course, if they want to reval or move things a little quicker that is okay with me. :)

Here's some news sources:

http://www.thanhniennews.com/

http://vietnamnews.vnanet.vn/showarticle.php?num=06ECO040507

and of course the SBV for the exchange rate.

http://www.centralbank.vn/vn/home/index.jsp

I believe China revaled their yuan here awhile back ago, but I don't have an article, nor do I recall the before and after rates.


:wave:

[Telestar]

Again, thank you myjag99 for more supported information. This helps to add clarity. Vietnam will need to control inflation and their trade deficit at some point now that they are part of the WTO. I took a look and the China Yuan is at 13 cents. Perhpas over time, the Dong will be worth a portion of this.
Thanks...

[mcdan]

http://www.xe.com/ucc/convert.cgi



15977

[Garf]

Thank you myjag99 for your supported response, this helps. I'm a little ignorant on the "path China has gone". Do you have any more details to help understand when this turn about may happen and what the indicators might be? An informed investment stands a chance of success. Thank you again for the info and enjoy your day!
:wave:

China revalued their currency almost 2 years ago... from memory it was only a 2.5% increase against the USD.