Foreign currency reserves at record high

Vietnam has seen record increases in foreign currency reserves in the first half of 2007, due to rising indirect investment in the stock market and a stabilised domestic exchange rate.
State Bank governor Le Duc Thuy said the increases in foreign currency reserves had tripled those of 2006 in the first five months of this year.
“The central bank of Vietnam will continue to invest in foreign currencies in the next few months to meet the target level equal to 20 weeks of imports,” said Thuy.
According to the IMF, Vietnam’s total foreign currency reserves were equal to 12 weeks of imports at the end of last year, reaching the minimum international standard for foreign currency reserves.
The reserve increase helps stabilise the exchange rate between the Vietnamese dong and the US dollar with a fluctuation rate of around one per cent by the end of this year. While the Vietnamese dong fell against the US dollar at the end of 2006 and in the beginning of this year, the interbank nominal effective exchange rate was higher than the real exchange rate for the first time in Vietnam’s history due to the surplus of foreign currency supply.
“Recently, the increase in the national forex reserve has stabilised the exchange rate, narrowing the gap between the interbank nominal effective exchange rate and the rate on the market,” Thuy added.
In January, the State Bank doubled the trading band for the dong-dollar rate. In the first two months of this year, the dong appreciated by about 0.3 per cent against the dollar after declining around 0.9 per cent in 2006.
“One reason for the surplus stems from indirect foreign investment capital which is expected to keep increasing in the last half of this year,” said Thuy.
According to the World Bank’s assessment of Vietnam’s economic development released in June, rising capital inflows complicated the implementation of monetary policy. Vietnam was confronted with what is called an ‘impossible trinity’: simultaneously maintaining a fixed or nearly fixed exchange rate, independent monetary policy and an open capital account. In addition, increasing capital inflows have put pressure on the exchange rate to appreciate. However, the authorities have been unwilling to allow a greater appreciation as it may harm the competitiveness of exports and slow down growth.
Officials have thus intervened in the market by purchasing foreign currency. The dong has, as a result, returned to a slow depreciation. This type of intervention in the foreign exchange market has resulted in a build-up of reserves.
ब्य SGT :Vietnam travel

HCMC’s largest shopping center opened to business

Shoppers buy discount luggage at the Parkson Hung Vuong Plaza in HCMC's District 5 on the opening day Friday

By QUOC HUNG


Vietnam travel
(SGT-HCMC) Hung Vuong Plaza, HCMC’s largest shopping center, started operations in busy District 5 Friday and has since attracted large numbers of shoppers as well as curious window-shoppers.

The US$45-million Hung Vuong Plaza comprises of a luxury commercial complex and two 30-floor blocks with 276 apartments.

The complex, surrounded by Hung Vuong, Ly Thuong Kiet, Nguyen Kim and Pham Huu Chi streets of the vibrant district, has total floor space of nearly 93,000 square meters.

The first eight floors of each block will be for luxury boutiques, entertainment facilities, restaurants, educational and sport facilities and a cineplex.

The project is developed by Saigon Trading Construction Co. 5 and Hung Vuong Corp. with an 18:82 footing.

Tran Le Nguyen, general director of Hung Vuong Corp., said the complex was nearly full with major tenants like Parkson, Megastar Media, ILA and California WOW Xperience. Parkson is the first tenant that opened to business the same day of Hung Vuong Plaza’s inauguration.

This is the third department store in Vietnam and the second one in HCMC of Parkson Corporation Sdn Bhd, a leading shopping mall operator of Malaysia.

The four-story Parkson Hung Vuong Plaza, 1.5 times the size of its current Parkson Saigontourist Plaza in District 1, has total floor space of 24,000 square meters.

The ILA English Training Center has leased more than 1,200 square meters on the fifth floor to open 18 classrooms.

MegaStar, a joint venture between Envoy Media Partners Limited (British Virgin Islands) and Phuong Nam Corporation of Vietnam, will soon open eight cinemas on the seventh and eighth floors. The 9th floor of the commercial area will be home to a swimming pool.

Nguyen said the apartment section of the building would be completed some time this year and that more than 93% of the apartments had been sold out.

Making an affectionate homeland tour

A tour guide (R) guides foreign tourists to visit Van Mieu-Quoc Tu Giam (Temple of Literature) in Hanoi

The affectionate homeland tour of Ben Thanh Tourist was designed for travelers who have plenty of time for vacations. They can combine traveling in cars and planes.

The 13-day tour, which starts in HCMC, gives tourists an opportunity to enjoy great sunny beaches in a beautiful country for those looking for relaxation, plus learning about the history and culture of Vietnam by visiting royal tombs, temples and world heritage sites.

On the trip that includes 11 provinces and cities in the country, travelers can wallow in the sunshine of beautiful beaches at Mui Ne, Nha Trang, Dai Lanh and My Khe.
Vietnam travel
It offers a variety of different activities to ensure that all participants will have an enjoyable time. When travelers get worn-out from all the sea sport activities such as water-skiing, jet skiing and snorkeling, the tour operator will arrange other pleasant programs in the ancient city of Hue.

In the city, visitors can witness a performance of nha nhac, the royal music of the former Nguyen Dynasty, and visit cultural heritage sites recognized by the United Nations Educational, Scientific and Cultural Organization (UNESCO). They also can enjoy a boat trip on the Huong River to see the Trang Tien Bridge and enjoy traditional, regal Hue music while releasing flower garlands and colored lanterns to bring good fortune.

After seven days of traveling by car to provinces and cities in southern and central regions including Binh Thuan, Khanh Hoa, Binh Dinh, Danang, Quang Nam, Thua Thien-Hue and Quang Binh, tourists will fly to the capital city of Hanoi from Phu Bai Airport in Hue.

Ben Thanh Tourist allocates six days to explore tourist attractions in the north.

Hanoi is the major destination of the tour with a three-night stay in the city for sightseeing and preparing to visit other destinations such as Halong, Ninh Binh and Ha Tay.

The tour takes in most of the major sites in the capital including Hoan Kiem (restored sword) Lake, Van Mieu-Quoc Tu Giam (Temple of Literature), the National University, Dong Xuan Market, Quan Thanh Temple, West Lake, Tran Quoc Pagoda, and One Pillar Pagoda, among others.

From Hanoi tourists return to HCMC by plane.

The tour costs VND10.5 million per person. The tour offers two ways for visitors to choose their meals. Ben Thanh Tourist can arrange meals for guests during the 13-day excursion or if guests do it by themselves, the tour operator will refund VND1.2 million.