Macroeconomic stability must be focus for Vietnam: Central Institute for Economic Management

Dr. Vo Tri Thanh, vice director of the Central Institute for Economic Management, spoke to the Daily on the country’s economic situation from now to the year’s end. Excerpts:

The Saigon Times Daily: There is suspicion that rapid interest rate cuts are signs of monetary easing. What do you comment on this?

– Dr. Vo Tri Thanh: In theory, how interest rates are set reflects the reality of money supply. However, the relationship between interest rates and money supply in Vietnam has always been unclear. Sometimes, interest rates pick up, and so does money supply, or vice versa. At present, interest rates are in decline but money supply does not rise.

What are your forecasts of economic trends in the years to come?

– (Economic woes) will continue. The way the world, or Vietnam, rescued the economy in the 2008-2009 crisis cannot be repeated. At the time, it was essentially pumping money through fiscal and monetary policy. Injecting money into the economy is an impossible mission at the moment since different and sustainable solutions are preferred. This is a turnaround for not only Vietnam but also the world economy. Growth and development models should be changed, leading to pain and loss of time.

In short, stability must be a focus, instead of injecting money into the economy. Moreover, stability is a prerequisite to change the way of doing business or making investments.

As for the world, there are currently four imbalances that require time to handle. The first imbalance lies between the real economy and the virtual one when financial bubbles are too big. The second is between the real economy and sustainable development and the environment. The third is the East-West imbalance, meaning the U.S. always suffers deficits, while East Asia has economic, trade and investment surpluses. And the last is the internal imbalance such as the euro zone public debt crisis. These four issues cannot be addressed soon.

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Top 100 U.S. Advertisers Boost Ad Spending but Not In Traditional Media

Measured spending for the top 100 actually slipped 0.2%. A double-digit measured-media gain for internet display spending and a small increase in TV did not make up for losses in newspapers, magazines and radio.

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Western Union in Vietnam – Reaching a New Peak

The Saigon Times Weekly interviews Ms. Drina Yue, Senior Vice President and Managing Director of Western Union, Asia-Pacific, and Ms. Nguyen Thi Nhu Ly, Regional Director of Western Union, Indochina, on the occasion Western Union achieved the record of the largest international money remittance network in Vietnam, with 8,000 transaction locations in the country

Q: What is the competitive edge of Western Union?

It’s in the three words: Reliable, Fast and Convenient. In Vietnam, Western Union has 8,000 locations. The worldwide number is 485,000 locations. With such an extensive network, we are present at all key remittance-receiving hubs in Vietnam and can help overseas Vietnamese send money home easily.

Vietnam is among the 16 countries that receive the most remittances in the world. There are about four million Vietnamese living, working and studying in 101 countries and territories worldwide. The Vietnamese are using more banking services and Internet. Many potential customers wish to use convenient and safe money transfer services.

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Hot Money’s Chinese Exit

A hurried exit of capital from China is flashing a warning sign for investors in the world’s second-largest economy.

For the first time since the Asian financial crisis, China’s foreign exchange reserves shrank in the last three months of 2011. A $ 20.6 billion slip still leaves Beijing with a monumental $ 3.18 trillion in reserves, more than enough for a rainy day.

But a quarterly fall has not been seen since investors fled Asia in the 1998 financial crisis. It reflects a marked turn of sentiment on the Chinese economy.

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U.S. Chamber of Commerce CEO looks to energy for job growth

The GOP (Republican Party) debates have had a similar ring to them, with candidates blaming high unemployment on heavy regulation and expensive policies from Washington. After co-moderating the CNBC debate, I turned to Tom Donohue, who as head of the Chamber of Commerce, the pre-eminent pro-business lobbying organization in the U.S., is seen as the voice of Corporate America. I asked him what’s holding back business from hiring. As an example of a major potential for job creation, he pointed to the Keystone XL pipeline, which last week said it may be able to win approval in six to nine months as its parent, TransCanada, negotiates with Nebraska and U.S. officials about a new route. Our conversation below is edited for clarity and length.

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FDI pouring into hi-tech industries in Vietnam

Apr 13, 2010. Many foreign investors in hi-tech industries, especially multinational companies, are continuing to pour money into Vietnam even though the world’s economy has yet to completely recover from the global financial crisis. Here are some of the big movers and shakers who have invested in the country.

Wintek Corporation, a Taiwanese manufacturer of touch screens for Apple iPhones, last month received an investment certificate to build a factory in the northern province of Bac Giang.

The company is well-known for its LCD touch screens worldwide and is one of only two companies worldwide to produce them for the iPad. It will use more than 150,000 square meters of Quang Chau Industrial Zone to locate its factory, which is worth US$250 million.

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Weekly Update Jan 03: 2011 Membership Directory, Party Congress, Dalat Winter Weekend, TET


AmCham Membership Directory 2011 – update your listing
We-We, Jan 12-19, 11th Party Congress in Hanoi
Fr-Su, Jan 21-23 AmCham Dalat Winter Weekend
We-Mo, Feb 2-7 TET Lunar New Year (Yr of the Cat)

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