Deputy Minister of Construction, Nguyen Tran Nam, speaks with DTiNews about rising prices and the domestic real estate market. Deputy Minister Nguyen Tran Nam Have price hikes in petroleum and electricity impacted the real estate market? Price increases will inevitably impact construction projects. Construction materials are greatly affected by the transport costs. Real estate prices will increase along with this trend. This is unavoidable. However, the important thing is there is still a strong realty market and people still buy and sell. Has the rise in prices of construction materials led to financial difficulties which have slowed down construction projects? Basically, construction materials remain abundant. Most construction materials are locally made, instead of being imported. Due to the material price hikes, customers will have to accept adjustments in the price of real estate. The rise in the price of construction materials is inescapable. So the real estate market … [Read more...] about Realty market exciting despite tightening monetary policy
When will money market rates increase
At a PVcom Bank branch According to data from the National Financial Supervisory Commission, deposits from economic organisations and individuals have increased since January this year, which was up 0.5% compared to the end of 2017. Meanwhile, the average deposit interest rates in Vietnamese dong for over 12-month terms hovered around 6.55% per year in the first two months of this year, up 0.03 percentage point compared to the end of 2017. Several joint stock commercial banks pushed their long-term interest rates higher, including Viet Capital Bank, with the long term interest rates listed at 8.3% per year for 13-month term deposits, up 0.3% compared to the end of 2017 and 8.5% per year for 15-month term deposits. The slight increase in long-term deposit rates in the first months of this year was due to the fact that the banks are preparing capital for their business plans for the whole year and several banks are also restructuring their long-term capital. Despite the rise in … [Read more...] about Interest rates expected to be lowered
Over the past decade, the trade deficit along with high inflation has been named as the most alarming threat to Vietnam’s macroeconomy and to monetary management. Many economists see a cloudy forecast when looking into their crystal balls From a monetary aspect, the question is how will the exchange rate mechanism help cure this pain? In macroeconomic theory, a local currency depreciation boosts exports and curbs imports as it makes exports cheaper and imports more expensive. The lesson from China could well prove this theory correct and this is one of the main reasons why Western economies like the United States are calling for a currency appreciation in China. This fact puts forward a question, why does the State Bank not depreciate the Vietnamese dong in an even fashion. Moreover, a shrinking onshore dollar supply was the rationale behind foreign institutions touting a currency depreciation as the only way to resolve the foreign currency supply-demand imbalance. … [Read more...] about Tough cure needed for ailing forex market
Vietnam’s e-commerce websites are still receiving heavy investment to develop despite big losses, but when will these projects stop losing? The Vietnamese e-commerce market is one of the leading markets in the region for investment. According to Nielsen, the annual growth speed of the e-commerce market is 22% and is expected to hit US$10 billion in annual revenue by 2022 from the current US$4 billion. The Vietnamese e-commerce market shows huge potential for development and receives great attention from new investors. In a recent report by Topica Founder Institute, e-commerce attracted US$83 million of foreign investment through 21 deals. Startup SEA (used to be Garena, which was termed as a unicorn in Asia), ranked first among investors pouring capital into Vietnamese startups in 2017. SEA spent US$64 million acquiring 82% of the shares in Foody, a food delivery website and app. CyberAgent Ventures, a Japanese venture investment fund, continues its activities in Vietnam. In … [Read more...] about When will Vietnam’s e-commerce players stop “burning money”?
Viet Nam News “Everyone, I will sell rose bouquets tomorrow in celebration of International Women’s Day. Those who are looking to give flowers to their girlfriends or classmates, please come to support me in front of Gate A of Hải Phòng University.” So wrote 26-year-old Trần Thị Hoa in one of her last Facebook posts on March 6. Early on the morning of March 7, Hoa and her friend Trần Thị Trang rode on motorbike to the flower market Đằng Hải in Hải An District in the northeastern port city of Hải Phòng. Not born to wealthy families, the pair intended to buy flowers and utilise their craft skills to make elaborate bouquets, aiming to make some money to cover their study and living expenses. On that fateful morning, Cao Huy Hoàng was driving a container truck for an export-import company along his usual route. Stopped at a red light, he saw that two trucks ahead of him were already occupying … [Read more...] about Road accidents: When will the pain end?