Vietnam - International Political Economy

EU Begins Vietnam Trade Talks

vbs — Wed, 03 Mar 2010 14:27:43 +0000

The European Union (EU) and the Vietnam government have begun Vietnam trade talks despite the failure of recent Doha Round trade talks according to Dow Jones.

Key drivers to the Vietnam trade talks include Vietnam exports of manufacturing and the prospect of Vietnam imports from the EU of wine, cheese, cars, and pharmaceuticals.

Currently Vietnam exports of textiles, shoes, coffee and seafood make up the lion share of Vietnam’ offering but with a EU trade deal on the table, manufacturing could lift Vietnam’s competitiveness with China.

Vietnam Foreign Direct Investment Rises 10 Percent

vbs — Mon, 01 Mar 2010 13:39:18 +0000

Vietnam foreign direct investment (FDI) rose 10 percent so far in 2010 according Vietnam’s Planning and Investment Ministry’s and as reported by Reuters.

The increase in Vietnam investment in the first two months of the year accounted for $1.1 billion and makes up for the massive 72.8 percent decline in Vietnam foreign direct investment a year ago.

Inflation in the Vietnam Economy Hits 8.46 Percent

vbs — Wed, 24 Feb 2010 14:09:10 +0000

Inflation in the Vietnam economy hit 8.46 percent in February marking the highest level in ten months according to the Vietnam government statistics office as reported by Reuters.

The increase in the Vietnam consumer price index (CPI), the countries inflation measure, is up by 1.96 percent from January’s reading and is a clear sign that the Vietnam economy is continuing to react to the Vietnam central bank’s recent decision to devalue the Vietnam currency by 3.3 along.

Another key driver of the inflation rise is the Vietnam government’s decision to mandate price hikes on electricity and gasoline. (more…)

Vietnam Government Devalues the Dong

vbs — Wed, 10 Feb 2010 15:00:07 +0000

The Vietnam government through its central bank, the State Bank of Vietnam, has announced it will devalue the dong by 3.4 percent according to Dow Jones.

The devaluation marks the second currency devaluation in the Vietnam economy in less than three months as the country faces the problem of high inflation, a weak financial sector due to a lack of US dollars, and a large trade deficit.

The last devaluation of the dong was a 5 percent devaluation back in November just days before Vietnam’s biggest holiday, Tet or the Lunar New Year festival. (more…)

Vietnam Files First US Vietnam Trade Dispute with WTO

vbs — Mon, 08 Feb 2010 14:15:50 +0000

The Vietnam government has filed its first Vietnam trade dispute with the World Trade Organisation (WTO) since joining the organisation according to AFP.

The Vietnam trade case accuses the US of imposing anti-dumping tariffs on frozen shrimp in which Vietnam exporters are seeing tariffs of anywhere between 4.13 percent and 25.76 percent.

The Vietnam government joined the World Trade Organisation (WTO) three years ago. (more…)

Central Bank Holds Rates for Vietnam Economy

vbs — Tue, 26 Jan 2010 12:22:05 +0000

The Vietnam Central Bank announced it will hold interest rates at 8 percent signaling the bank is confident that the Vietnam economy is keeping inflation at bay according to RTTNews.

In addition to the base rate decision, the Vietnam Central Bank also decided to keep the Vietnam discount rate at 6 percent and its Vietnam refinancing rate at 8 percent as well. (more…)

Vietnam Government to Raise $1 Billion through Bond Sale

vbs — Mon, 25 Jan 2010 12:23:46 +0000

The Vietnam government has announced it raised $1 billion through a 10-year bond sale according to Dow Jones.

The key driver of the move by the Vietnam government is to raise funds to invest in Vietnam’s state owned entities PetroVietnam (Vietnam Oil and Gas Group), Lilama Corp and Vietnam National Shipping Lines. (more…)

Taekwang to Invest in Vietnam $4.5 Billion

vbs — Wed, 20 Jan 2010 12:25:47 +0000

South Korea’s petrochemical and textiles firm Taekwang Industrial Co Ltd announced it will in invest in Vietnam $4.5 billion according to Reuters.

The firm will use the Vietnam investment to build a build a 2,400 megawatt coal-fired power plant through its shoe-making business arm.

The project is expected to start providing energy to the Vietnam economy by 2021. (more…)

Vietnam Central Bank Cuts Reserve Requirement

vbs — Mon, 18 Jan 2010 12:27:46 +0000

The Vietnam Central Bank, the State Bank of Vietnam, announced it will cut the foreign currency reserve requirement according to RTTNews.

Details of the reserve requirement include a cut from 7 percent to 4 percent for Vietnam foreign currency deposits of less than 12 months and a cut from 3 percent to 2 percent for Vietnam foreign currency deposits of more than 12 months. (more…)

Vietnam Exports to US Down 7.2 Percent

vbs — Mon, 14 Dec 2009 19:35:40 +0000

Vietnam exports to the US have declined 7.27 percent in the first 10 months of 2009 as announced by the Vietnamese Ministry of Industry and Trade and according to Yarnsandfibers.com.

The negative Vietnam trade news was expected considering the current impact of the great recession and a falling US dollar, but Vietnam exports should pick as the US recovers. Despite the decline there was an up tick in Vietnam exports of tea, computers and electronic components, fruits and vegetables, precious stones, metals, and footwear.

Nonetheless, 44 percent of Vietnam exports to the US are derived from textiles followed by wood, wood products and footwear. (more…)