The vast majority of new gas and electricity investments will need to come from private investors, especially foreign ones, to help Vietnam further develop its energy industry, experts said. According to a World Bank (WB)’s report released recently, the changing macroeconomic and sectoral context in Vietnam requires a new approach to financing electricity and gas investments. It presented an action plan on how to unlock new sources of finance, especially from the private sector, based on a comprehensive analysis of investment needs as well as constraints in the regulatory environment including the capital and forex markets. It is estimated between now and 2030, Vietnam’s electricity sector requires new investments of about US$10 billion annually, higher than the average of US$8 billion for the 2011–2015 period. Meanwhile, the development of the gas sector is estimated to require about US$20 billion between 2015 and 2035. Vietnam’s energy industry has … [Read more...] about Private investors key to develop Vietnam’s energy market
Forex capital markets
Private capital is key for Việt Nam’s energy development: WB report
Viet Nam News HÀ NỘI – New financial sources, especially from the private sector, will help Việt Nam further develop its energy industry, according to a new World Bank report on Việt Nam’s energy development. The report on Maximising Finance for Development in Việt Nam’s Energy Sector said the changing macroeconomic and sectoral context in Việt Nam needed new financial sources for electricity and gas investment activities. It presented an action plan on opening new sources of capital, especially from the private sector, based on a comprehensive analysis of investment demand as well as constraints in the existing legal environment including the capital and forex markets. From now until 2030, Việt Nam’s electricity sector needs new investment of about US$10 billion annually, higher than the average of $8 billion for the 2011–15 period. Meanwhile, the development of the gas sector is estimated to require about $20 … [Read more...] about Private capital is key for Việt Nam’s energy development: WB report
Private capital key to Vietnam’s energy development: WB report
Illustrative photo (Source: VNA) Hanoi (VNA) – New financial sources, particularly from the private sector, will help Vietnam further develop its energy industry, according to a new World Bank report on maximising finance for Vietnam’s energy development. Titled “Maximising Finance for Development in Vietnam’s energy sector”, the report said the changing macroeconomic and sectoral context in Vietnam requires a new approach to financing electricity and gas investments. It presented an action plan on how to unlock new sources of finance, especially from the private sector, based on a comprehensive analysis of investment needs as well as constraints in the regulatory environment including the capital and forex markets. Between now and 2030, Vietnam’s electricity sector requires new investments of about 10 billion USD annually, higher than the average of 8 billion USD for the 2011–15 period. Meanwhile, the development of the gas sector is … [Read more...] about Private capital key to Vietnam’s energy development: WB report
Over 6 billion USD purchased to raise forex reserves
The State Bank of Vietnam held a meeting in Hanoi on January 9 to launch tasks for the banking sector this year (Photo: VNA) Hanoi (VNA) – The country net purchased over 6 billion USD in 2018 to raise its foreign exchange reserves, the State Bank of Vietnam (SBV) reported at a meeting in Hanoi on January 9 to launch tasks for the banking sector this year. SBV Governor Le Minh Hung reported that in 2018, the central bank took concerted measures to achieve the set targets, thus greatly helping control inflation, stabilise the macro-economy, support economic growth and ensure the safe operation of credit organisations. The monetary policy has been carried out in harmony with other macro-policies, particularly the fiscal and price management ones, helping to keep the average inflation below the ceiling target of 4 percent. Interest rates have also been kept stable in spite of the upward trend in the world. Meanwhile, though there was certain pressure, gold prices and … [Read more...] about Over 6 billion USD purchased to raise forex reserves
Domestic market faces global uncertainties
Global uncertainties, such as the impacts of the Fed’s rate hikes and the spiralling US-China trade war, have triggered questions about whether the lending interest rate in Vietnamese dong will increase and in what direction foreign exchange rates will move. The Vietnam News Agency talks with economic expert Vu Dinh Anh about his forecasts for the developments of the financial markets in the remaining months of this year. Could you comment on the recent developments of the money market? The money market from the beginning of this year has seen stable developments. Major indicators such as money supply, deposit growth, credit growth, interest rates and foreign exchange rates have all seen stability in the period. The foreign exchange rate is one macroeconomic indicator which has drawn significant market attention recently, given the Fed’s rate hikes and the spiralling US-China trade war. The foreign exchange rate is largely relevant to the openness of the Vietnamese economy. … [Read more...] about Domestic market faces global uncertainties
European stock markets advance as rate tensions ease
Logo of the London Stock Exchange European equity markets benefited from an apparent fading of tensions between Italy and the EU over Rome's spending, and there were also glimmers of hope that Brexit talks could see some progress. "European equities are mostly higher in afternoon action, with earnings season ramping up in the US and results mostly better than forecasted, while Italian budget and UK Brexit concerns appear to be easing," analysts at the Charles Schwab brokerage said in a note. 'NOT PARTICULARLY COMFORTABLE' London stocks, however, underperformed their eurozone peers as a weak oil price dragged down shares in energy majors. Stock markets have been rocked in recent days by fears over spiking oil prices, rising US long-term interest rates and an attack by President Donald Trump on the US central bank and its policies. While none of the dangers have disappeared, investors were grateful for the reprieve from ongoing tension. "Investors may not be feeling particularly … [Read more...] about European stock markets advance as rate tensions ease
Foreign capital attraction: A tough job
Foreign capital attraction: A tough jobBy Ngoc Khanh A high-class product launch by a foreign-invested enterprise in Vietnam. Despite a surplus of US$3.3 billion in the first half of 2018, Vietnam’s trade balance tends to be negative in the later part of the year, when the demand for imports goes up. Thus, FDI is believed to be the most hopeful – PHOTO: QUOC HUNG Foreign indirect investment (FII) will no longer be the main driver of foreign capital attraction in the second half of 2018. Then what will be in place of it? In the first six months of this year, the State Bank of Vietnam (SBV) bought over US$12 billion, enlarging the nation’s foreign exchange reserves to US$63.5 billion, said the central bank’s governor at a teleconference between the central and local governments on July 2 in Hanoi (1). The forex reserves could have risen to over US$65 billion by the end of July, as some US$2 billion in forward purchases became mature in July. The … [Read more...] about Foreign capital attraction: A tough job
SBV intervenes in forex market
SBV intervenes in forex marketThe Saigon Times Daily A bank clerk is counting U.S. banknotes in this file photo. The central bank has intervened in the forex market by selling U.S. dollars to commercial banks - PHOTO: THANH HOA HCMC – The State Bank of Vietnam has officially intervened in the forex market by selling foreign currencies, especially U.S. dollars, to meet the demand of local commercial banks and stabilize the exchange rate, local media reported, citing an SBV representative. The representative said that the central bank has sold a small amount of U.S. dollars at VND23,050 each, or VND30-60 lower than the prices at commercial banks. In addition, the central bank today, July 17, slightly strengthened the local currency by reducing the reference exchange rate to VND22,643 per dollar, the second straight day the exchange rate has been revised down. As a result, the selling and buying prices of U.S. dollars quoted by commercial banks have softened to VND23,100 … [Read more...] about SBV intervenes in forex market
Stock market confronting macro risks
Stock market confronting macro risksBy Phuong Thao HCMC – The stock market is still exposed to many macro risks such as foreign capital withdrawal and rising inflation, although many international organizations have raised Vietnam’s gross domestic product (GDP) growth forecast. Since the beginning of the second quarter, the VN-Index has shed over 20%, having earlier seen share prices skyrocket. Notably, foreigners have been aggressive on the selling side, focusing on large caps such as property giant VIC, steel maker HPG and dairy enterprise VNM, said a news report on vietstock.vn. The U.S. Federal Reserve’s (Fed) rate hike is the main reason behind the foreign withdrawal. The Federal Open Market Committee (FOMC) recently hiked its target range for the federal funds rate by a quarter of a percentage point to a range of 1.75% to 2%, marking the second hike this year and the seventh hike since 2015. Further, the Fed signaled it would accelerate the frequency of … [Read more...] about Stock market confronting macro risks
Stagnant market hinders equitization process: official
Stagnant market hinders equitization process: officialBy Thanh Thuong - The Saigon Times DailyHCMC – The equitization of State-owned enterprises is facing the tumbling block of stagnant trade on the country’s stock markets, although the Government has urged that 1,000 SOEs go public in the next five years, a finance official said.Dang Quyet Tien, deputy director of the Enterprise Finance Department under the Finance Ministry, said the equitization process since 2008 had slowed down due to continuously-falling stock prices coupled with the global financial meltdown.To date 4,000 State-owned enterprises (SOEs) have gone public, and there remain some 1,000 SOEs that must be transformed in the 2011-2015, Tien said.“As instructed by the Government, all State enterprises have to register for equitization in the 2011-2015 period,” he told the Daily in an interview.These enterprises, in fact, have put their names down for the process and have begun related procedures, … [Read more...] about Stagnant market hinders equitization process: official