Backdoc » August 25th, 2015,
ONCE THE DOLLAR CRASHES, THE NEW GLOBAL REALITY WILL CHANGE THE RELATIONSHIP OF ALL CURRENCIES !!
THESE DEVALUATION POLICIES USED PRESENTLY WILL END AS WELL ! IMO
ThunderHawk : VIETNAM: How much value will the dong lose this year?
Some international institutions have predicted that the dong will depreciate by 5% this year, while economists have urged the government to devalue the currency by more than 10%.
....
ONCE THE DOLLAR CRASHES, THE NEW GLOBAL REALITY WILL CHANGE THE RELATIONSHIP OF ALL CURRENCIES !!
THESE DEVALUATION POLICIES USED PRESENTLY WILL END AS WELL ! IMO
ThunderHawk : VIETNAM: How much value will the dong lose this year?
Some international institutions have predicted that the dong will depreciate by 5% this year, while economists have urged the government to devalue the currency by more than 10%.
....
ANZ was the first bank to comment about the latest State Bank of Vietnam’s (SBV) move of devaluing the dong by another 1 percent and widening the forex trading band to 3% on August 19. ANZ said the move was not a surprise, but a stronger-than-expected move.
The dong/dollar exchange rate adjustment, according to ANZ, will help ease the pressure on the State Bank to intervene in the forex market.
However, according to the bank, even if Vietnam does not change its policies from now to the end of the year, the dong will still lose up to 5.1% of its value this year.
The local currency has depreciated by 4.5%, after three exchange rate adjustments and widening of the forex trading band two times.
The real exchange rate in the interbank market, according to ANZ, is VND22,408 per dollar.
The bank noted that in the last two years, the dong only depreciated by 1.3% every year.
Standard Chartered and HSBC have also highly appreciated the State Bank’s move to devalue the dong by another 1%.
The central bank’s decision, in the eyes of Standard Chartered, shows its concern about the impact of the Chinese yuan devaluation. Standard Chartered believes that the latest adjustment is nearly equal to the 3 percent yuan devaluation.
As soon as the announcement about the exchange rate adjustment was released, dollar prices soared in both the official and black markets.
At noon on August 19, Vietcombank’s selling price soared to VND22,350-22,450 per dollar, or VND150 dong per dollar more expensive than earlier this morning and VND345 higher than the day before.
Meanwhile, the greenback was traded at VND22,450-22,550 per dollar at the gold shops on Ha Trung street in Hanoi.
However, HSBC has advised businesses not to rush to buy dollars at this moment, as the central bank has just made the exchange rate adjustment.
HSBC’s CEO Pham Hong Hai said he believes market stability will return thanks to the management body’s flexibility. In principle, after a spell of heavy fluctuations, the dollar price will stabilize at a new price level.
While the State Bank remains cautious with its exchange rate adjustments, economists have repeatedly urged to devalue the dong more sharply.
Dr. Nguyen Tri Hieu, a renowned economist, said it is necessary to reconsider the policy on maintaining the strong dong and that Vietnam should devalue the dong by 10 percent within two or three years.
Meanwhile, Nguyen Duc Thanh from VEPR says Vietnam should devalue the dong more sharply than the yuan devaluation.
http://ift.tt/1Ly4Yho
************
Backdoc: » August 25th, 2015, 1:57 am •
THE NEW GLOBAL REALITY WILL SEE CERTAIN INDUSTRIES IN COUNTRIES JUST SIMPLY DRY UP AND GO AWAY WHILE OTHERS WILL FLOURISH!
REMEMBER HOW THE U.S. LOST THE COAL BUSINESS TO VIETNAM? MMMM
THIS IS AN EXAMPLE! CHEAPER LABOR AND AN ABUNDANCE SHIFTED THE LANDSCAPE!
THE WINNERS AND THE LOSERS WILL BE REDEFINED IN THIS NEW REALITY!
THE BLACKGOLD LANDSCAPE IS IN THE BATTLE WORLDWIDE TO SEE HOW THIS LANDSCAPE WILL BE REDEFINED!
LOOK FOR THESE ECONOMIC BATTLES AS COMPANIES GET SQUASHED OR GO GLOBAL! THE COMPANIES THAT DON'T GO GLOBAL WILL BE ACQUIRED OR DIE!
DING DONG, DOC IMO
************
ThunderHawk ; VIETNAM: Livestock industry on the TPP chopping block
Vietnam’s livestock industry on which the livelihoods of nearly 10 million people depend will most likely be put on the chopping block by the 11 other signatory nations to the Trans-Pacific Partnership (TPP) trade accord.
Deputy Director Tong Xuan Chinh of the Department of Livestock Production also pointedly asserted that the nation’s farmers and ranchers would simply lack the capacity to compete in a post TPP world.
“Other TPP members such as the US, Canada, New Zealand, Japan and Australia will undoubtedly swallow the livestock industry in one big gulp,” said Nguyen Duc Thanh, director of the Vietnam Institute for Economic and Policy Research (VEPR).
The industry is largely characterized by smallholders most of whom are family farmers with limited production and little to no resources to invest in the advanced technologies required to effectively compete in the global marketplaces.
Thanh said VEPR research is consistent with Deputy Director Chinh’s conclusions and shows that many if not substantially all of the smallholders will be forced to close their doors and go out of business.
In the transitional period, Thanh stressed it would be necessary for the government to provide financial and retraining assistance for the displaced farmers and some restructuring of the industry necessary.
The livestock industry may just be the sacrificial lamb that the nation will have to cough up in exchange for advantages the nation could gain as a whole in other industries such as the textiles industry.
http://ift.tt/1JtEuag
************
Backdoc: » August 25th, 2015, 2:01 am
LOOK FOR THESE POLICIES TO CHANGE AND WATCH THE DEBT CRASH WITH THE DOLLAR! LIKE THE ARTICLES SAID,"CLEVER" !!!!
DING DONG, DOC IMO
************
ThunderHawk : VIETNAM: Fiscal policy, public debt are major problems, not inflation or monetary policy
Concerns about public debt arose again after the Ministry of Finance (MOF) asked for VND30 trillion from the State Bank.
Though MOF and the State Bank of Vietnam have both said that it would be legal for the State Bank to lend money to the State budget to cover its expenses, the public has not calmed down about the issue.
The HCM City Securities Company (HSC), citing the State Budget Law and State Bank Law, said the State Bank has the right to advance money for the State budget expenditure at the interest rate of zero percent.
However, the problem is in the amount of money the finance ministry has asked for. HSC commented that the proposed VND10-15 trillion would not be worrying, but VND30 trillion is a large amount.
Bizlive quoted an HSC report as saying that the total money supply is estimated at VND5,500 trillion, which means that the sum of VND30 trillion wanted by MOF is equal to 0.54% of the total money supply.
Why does MOF need money from SBV?
MOF last week asked for a VND30 trillion loan from the central bank, but affirmed that it borrowed money not because of the state budget deficit.
However, the explanation could not satisfy economists.
“You will only borrow money when you lack money. If you don’t lack money, there is no need to borrow,” said Pham The Anh from the Hanoi Economics University on Thoi Bao Kinh Te Sai Gon, a renowned expert in public finance.
Borrowing money, according to Anh, should be seen as a normal thing, if the State lacks money temporarily.
The government can borrow money from the central banks and give money back after it collects taxes.
However, worries still exist. “It is okay that the State Bank said it would pay the money back within the fiscal year. However, the problem is that it’s unclear if the information about the loan would be made public,” Anh said.
“In general, central banks publicize information about how much to borrow, when and how much to pay debt. But we don’t have such information,” he said.
Is the budget deficit worrying?
Anh believes that overspending is the major reason behind the lack of money.
“Seventy percent of budget’s expenditure goes to regularly expenses, which is a high proportion,” Anh said.
While the state needs much money to spend, its revenue from tax collection is modest.
In previous years, when the inflation rates were high, the yearly budget revenue increased sharply by 20% sometimes.
The increase is predicted to be at 6-7% only this year. Meanwhile, the crude oil price decrease has also affected the budget revenue.
http://ift.tt/1Ly4Yhr
The dong/dollar exchange rate adjustment, according to ANZ, will help ease the pressure on the State Bank to intervene in the forex market.
However, according to the bank, even if Vietnam does not change its policies from now to the end of the year, the dong will still lose up to 5.1% of its value this year.
The local currency has depreciated by 4.5%, after three exchange rate adjustments and widening of the forex trading band two times.
The real exchange rate in the interbank market, according to ANZ, is VND22,408 per dollar.
The bank noted that in the last two years, the dong only depreciated by 1.3% every year.
Standard Chartered and HSBC have also highly appreciated the State Bank’s move to devalue the dong by another 1%.
The central bank’s decision, in the eyes of Standard Chartered, shows its concern about the impact of the Chinese yuan devaluation. Standard Chartered believes that the latest adjustment is nearly equal to the 3 percent yuan devaluation.
As soon as the announcement about the exchange rate adjustment was released, dollar prices soared in both the official and black markets.
At noon on August 19, Vietcombank’s selling price soared to VND22,350-22,450 per dollar, or VND150 dong per dollar more expensive than earlier this morning and VND345 higher than the day before.
Meanwhile, the greenback was traded at VND22,450-22,550 per dollar at the gold shops on Ha Trung street in Hanoi.
However, HSBC has advised businesses not to rush to buy dollars at this moment, as the central bank has just made the exchange rate adjustment.
HSBC’s CEO Pham Hong Hai said he believes market stability will return thanks to the management body’s flexibility. In principle, after a spell of heavy fluctuations, the dollar price will stabilize at a new price level.
While the State Bank remains cautious with its exchange rate adjustments, economists have repeatedly urged to devalue the dong more sharply.
Dr. Nguyen Tri Hieu, a renowned economist, said it is necessary to reconsider the policy on maintaining the strong dong and that Vietnam should devalue the dong by 10 percent within two or three years.
Meanwhile, Nguyen Duc Thanh from VEPR says Vietnam should devalue the dong more sharply than the yuan devaluation.
http://ift.tt/1Ly4Yho
************
Backdoc: » August 25th, 2015, 1:57 am •
THE NEW GLOBAL REALITY WILL SEE CERTAIN INDUSTRIES IN COUNTRIES JUST SIMPLY DRY UP AND GO AWAY WHILE OTHERS WILL FLOURISH!
REMEMBER HOW THE U.S. LOST THE COAL BUSINESS TO VIETNAM? MMMM
THIS IS AN EXAMPLE! CHEAPER LABOR AND AN ABUNDANCE SHIFTED THE LANDSCAPE!
THE WINNERS AND THE LOSERS WILL BE REDEFINED IN THIS NEW REALITY!
THE BLACKGOLD LANDSCAPE IS IN THE BATTLE WORLDWIDE TO SEE HOW THIS LANDSCAPE WILL BE REDEFINED!
LOOK FOR THESE ECONOMIC BATTLES AS COMPANIES GET SQUASHED OR GO GLOBAL! THE COMPANIES THAT DON'T GO GLOBAL WILL BE ACQUIRED OR DIE!
DING DONG, DOC IMO
************
ThunderHawk ; VIETNAM: Livestock industry on the TPP chopping block
Vietnam’s livestock industry on which the livelihoods of nearly 10 million people depend will most likely be put on the chopping block by the 11 other signatory nations to the Trans-Pacific Partnership (TPP) trade accord.
Deputy Director Tong Xuan Chinh of the Department of Livestock Production also pointedly asserted that the nation’s farmers and ranchers would simply lack the capacity to compete in a post TPP world.
“Other TPP members such as the US, Canada, New Zealand, Japan and Australia will undoubtedly swallow the livestock industry in one big gulp,” said Nguyen Duc Thanh, director of the Vietnam Institute for Economic and Policy Research (VEPR).
The industry is largely characterized by smallholders most of whom are family farmers with limited production and little to no resources to invest in the advanced technologies required to effectively compete in the global marketplaces.
Thanh said VEPR research is consistent with Deputy Director Chinh’s conclusions and shows that many if not substantially all of the smallholders will be forced to close their doors and go out of business.
In the transitional period, Thanh stressed it would be necessary for the government to provide financial and retraining assistance for the displaced farmers and some restructuring of the industry necessary.
The livestock industry may just be the sacrificial lamb that the nation will have to cough up in exchange for advantages the nation could gain as a whole in other industries such as the textiles industry.
http://ift.tt/1JtEuag
************
Backdoc: » August 25th, 2015, 2:01 am
LOOK FOR THESE POLICIES TO CHANGE AND WATCH THE DEBT CRASH WITH THE DOLLAR! LIKE THE ARTICLES SAID,"CLEVER" !!!!
DING DONG, DOC IMO
************
ThunderHawk : VIETNAM: Fiscal policy, public debt are major problems, not inflation or monetary policy
Concerns about public debt arose again after the Ministry of Finance (MOF) asked for VND30 trillion from the State Bank.
Though MOF and the State Bank of Vietnam have both said that it would be legal for the State Bank to lend money to the State budget to cover its expenses, the public has not calmed down about the issue.
The HCM City Securities Company (HSC), citing the State Budget Law and State Bank Law, said the State Bank has the right to advance money for the State budget expenditure at the interest rate of zero percent.
However, the problem is in the amount of money the finance ministry has asked for. HSC commented that the proposed VND10-15 trillion would not be worrying, but VND30 trillion is a large amount.
Bizlive quoted an HSC report as saying that the total money supply is estimated at VND5,500 trillion, which means that the sum of VND30 trillion wanted by MOF is equal to 0.54% of the total money supply.
Why does MOF need money from SBV?
MOF last week asked for a VND30 trillion loan from the central bank, but affirmed that it borrowed money not because of the state budget deficit.
However, the explanation could not satisfy economists.
“You will only borrow money when you lack money. If you don’t lack money, there is no need to borrow,” said Pham The Anh from the Hanoi Economics University on Thoi Bao Kinh Te Sai Gon, a renowned expert in public finance.
Borrowing money, according to Anh, should be seen as a normal thing, if the State lacks money temporarily.
The government can borrow money from the central banks and give money back after it collects taxes.
However, worries still exist. “It is okay that the State Bank said it would pay the money back within the fiscal year. However, the problem is that it’s unclear if the information about the loan would be made public,” Anh said.
“In general, central banks publicize information about how much to borrow, when and how much to pay debt. But we don’t have such information,” he said.
Is the budget deficit worrying?
Anh believes that overspending is the major reason behind the lack of money.
“Seventy percent of budget’s expenditure goes to regularly expenses, which is a high proportion,” Anh said.
While the state needs much money to spend, its revenue from tax collection is modest.
In previous years, when the inflation rates were high, the yearly budget revenue increased sharply by 20% sometimes.
The increase is predicted to be at 6-7% only this year. Meanwhile, the crude oil price decrease has also affected the budget revenue.
http://ift.tt/1Ly4Yhr
Backdoc: » August 25th, 2015, 2:06 am
CONFUCIUS SAY: HE WHO CONTROLS TRADE CONTROLS CURRENCY! HEEE HEEE
DING DONG, DOC IMO
************
ThunderHawk : VIETNAM: Businesses optimise FTA opportunities
Businesses need time to access trade pacts, especially the European-Vietnam Free Trade Agreement (EVFTA) which is expected to bring numerous opportunities and benefits for import-export firms.
Speaking at a press conference in Hanoi on August 20, Head of the International Relations Department under the Ministry of Finance Vu Nhu Thang said 70% of businesses have yet to optimise FTA opportunities.
He mentioned Vietnam’s commitments to export duties and financial services in the EVFTA.
He underlined garment-textile and footwear exports to the EU as Vietnam’s strengths, saying once the EVFTA comes into effect, 80% of the sectors’ products will enjoy a 0% tax rate and the remaining will be applied within seven years.
The EVFTA is considered a comprehensive and high-quality trade pact forecast to benefit the two sides, especially regarding potential Vietnamese industries such as garment-textiles, farm produce and timber products.
The EU is currently one of Vietnam’s key trade partners. Trade has increased considerably between 2012 and 2015, topping US$36.7 billion last year.
Many products imported from the EU have helped Vietnam to develop industry, garment-textiles, footwear and means of transport.
The EU is also a major investor in Vietnam with 24 out of the 28 member countries running 2,000 investment projects worth nearly US$30 billion in the Southeast Asian nation last year.
http://ift.tt/1JtErLC
************
Backdoc: LOOKS LIKE MORE AND MORE COUNTRIES ARE FIGURING IT OUT THAT YOU HAVE TO PAY TO PLAY! DOC IMO
************
ThunderHawk : Over 40 countries yearn for FTAs with EAEU
Over 40 countries worldwide want to establish free trade agreements (FTA) with the Eurasian Economic Union (EAEU) which comprises Russia, Kazakhstan, Belarus, Armenia and Kyrgyzstan.
The statement was made by Russian Minister of Economic Development Alexei Ulykayev during a consultation meeting of economic ministers from East Asia Summit (EAS) member countries held on August 24 in Kuala Lumpur, Malaysia , on the sidelines of the 47th ASEAN Economic Ministers’ Meeting (AEM) and related meetings.
According to the minister, after the EAEU signed an FTA with Vietnam in May this year, over 40 countries and international organisations including Indonesia, China, Thailand and Cambodia want to establish FTAs with the union.
Active participation to the process will lead to cement ties in the region, increase regional investment attractiveness as well as create favourable conditions for Russian companies to approach new markets, he said.
http://ift.tt/1Ly4Yht
CONFUCIUS SAY: HE WHO CONTROLS TRADE CONTROLS CURRENCY! HEEE HEEE
DING DONG, DOC IMO
************
ThunderHawk : VIETNAM: Businesses optimise FTA opportunities
Businesses need time to access trade pacts, especially the European-Vietnam Free Trade Agreement (EVFTA) which is expected to bring numerous opportunities and benefits for import-export firms.
Speaking at a press conference in Hanoi on August 20, Head of the International Relations Department under the Ministry of Finance Vu Nhu Thang said 70% of businesses have yet to optimise FTA opportunities.
He mentioned Vietnam’s commitments to export duties and financial services in the EVFTA.
He underlined garment-textile and footwear exports to the EU as Vietnam’s strengths, saying once the EVFTA comes into effect, 80% of the sectors’ products will enjoy a 0% tax rate and the remaining will be applied within seven years.
The EVFTA is considered a comprehensive and high-quality trade pact forecast to benefit the two sides, especially regarding potential Vietnamese industries such as garment-textiles, farm produce and timber products.
The EU is currently one of Vietnam’s key trade partners. Trade has increased considerably between 2012 and 2015, topping US$36.7 billion last year.
Many products imported from the EU have helped Vietnam to develop industry, garment-textiles, footwear and means of transport.
The EU is also a major investor in Vietnam with 24 out of the 28 member countries running 2,000 investment projects worth nearly US$30 billion in the Southeast Asian nation last year.
http://ift.tt/1JtErLC
************
Backdoc: LOOKS LIKE MORE AND MORE COUNTRIES ARE FIGURING IT OUT THAT YOU HAVE TO PAY TO PLAY! DOC IMO
************
ThunderHawk : Over 40 countries yearn for FTAs with EAEU
Over 40 countries worldwide want to establish free trade agreements (FTA) with the Eurasian Economic Union (EAEU) which comprises Russia, Kazakhstan, Belarus, Armenia and Kyrgyzstan.
The statement was made by Russian Minister of Economic Development Alexei Ulykayev during a consultation meeting of economic ministers from East Asia Summit (EAS) member countries held on August 24 in Kuala Lumpur, Malaysia , on the sidelines of the 47th ASEAN Economic Ministers’ Meeting (AEM) and related meetings.
According to the minister, after the EAEU signed an FTA with Vietnam in May this year, over 40 countries and international organisations including Indonesia, China, Thailand and Cambodia want to establish FTAs with the union.
Active participation to the process will lead to cement ties in the region, increase regional investment attractiveness as well as create favourable conditions for Russian companies to approach new markets, he said.
http://ift.tt/1Ly4Yht
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