U.S. Dollar Firmer in Vietnam, Remittances to HCMC Hit $3.7 Billion

Tuan Minh

20:05 09/11/2015

BizLIVE - U.S. dollar prices rose against the Vietnamese dong on Monday amid speculation that the Fed would raise interest rates next month. Overseas remittances to HCM City continued increasing through October.

U.S. Dollar Firmer in Vietnam, Remittances to HCMC Hit $3.7 Billion
U.S. Dollar Prices Rise as Fed Plans Interest Rate Liftoff
Banks in Vietnam increased USD prices by 60 dong a dollar on Monday afternoon while free-market USD strengthened to 22,560 dong.
The strengthening of the greenback in Vietnam takes cues from speculation that the U.S. Federal Reserve (Fed) would hike interest rates by some 25 basis points in December after the release of a positive employment report for October.
Remittances to HCM City Gain 13% y/y to $3.7 Billion in Jan-Oct
Overseas remittances to Ho Chi Minh City reached $3.7 billion in the ten months through October, representing a 13% year-on-year increase.
Remittances to the city often increase towards the final months of the year and the amount in the fourth quarter alone could be equal to that in the first six or seven months of the year, said Nguyen Hoang Minh, deputy director of the State Bank of Vietnam-HCM City branch.
The remittances could hit $5.5 billion this year, up $500 million from last year, he added.
China Airline Eyes Guangzhou-Phu Quoc Air Service
China Southern Airlines plans to launch flights connecting China’s Guangzhou with Phu Quoc island off mainland Vietnam’s southern province of Kien Giang in early 2016, an official has said.
The Chinese air carrier will use its Boeing or Airbus aircraft for three weekly flights on the route.
Vietnam Government Reaps $196 Million from IPOs in Ten Months
The Vietnamese government booked proceeds of 4.4 trillion dong ($195.6 million) from selling shares of state-owned enterprises via 51 initial public offerings (IPOs) on the Hanoi Stock Exchange in the first ten months of this year.
Investors bought out shares of 33 companies, including service provider Thang Long GTC Company, Central Transport Hospital, Vietnam National Tea Corp and Vietnam National Vegetable, Fruit and Agricultural Product Corp.
Quang Ninh Province Commits to Aid Investors in Border Gate EZ
Vietnam’s northern province of Quang Ninh will further improve the investment climate to support investors in the province’s Mong Cai Border Gate Economic Zone, a provincial official said at the conference on improving the investment and business environment and raising the Provincial Competitiveness Index, held on November 7.
The Mong Cai Border Gate Economic Zone Management Authority granted the investment certificates to two projects in the zone, signed an agreement to receive the support of BIDV to build schools and signed memoranda of understanding with investors of seven projects. The total value of the ten projects was 9.7 trillion dong ($431 million).
Vietnam Climbs in Global Prosperity Index
Vietnam has advanced one step to the 55th position out of 142 countries in the Global Prosperity Index, according to a report of the UK-based think-tank The Legatum Institute.
The country has made progress in some categories, such as rising from the 69th in 2014 to the 64th this year in entrepreneurship and opportunity, from 61st to 59th in governance and from 70th to 57th in education.
South Korea Pledges to Pour $6.22 Billion Investment in Vietnam in Jan-Oct
FDI approvals for South Korea’s fresh and operational projects in Vietnam reached $6.22 billion in the ten months through October, putting the nation at the top of investors in the Southeast Asian country.
Vietnam Ministry Rejects Samsung’s Preferential Tax Request
Vietnam’s Ministry of Finance has turned down Samsung Electronics Vietnam Company’s request for reductions in corporate income tax for some of its projects, saying that the firm’s proposal does not match the current legislation.
Thanh Hoa Province Leader Pledges Incentives for Investors
Thanh Hoa province’s authorities will create the best conditions for investors, said Nguyen Dinh Xung, chairman of the municipal People’s Committee, at FLC Group’s meeting with investors on November 7.
Mr. Xung highlighted the province’s competitive edges, which are a developed transport network, abundant labor force, rich mineral resources, and a wide range of heritages and beaches eligible for tourism development.
Vietnam Largest Island Lures $8 Billion in Investment
Investors have registered to implement over 200 projects with a combined investment capital of 168 trillion dong (roughly $8 billion) on Phu Quoc island, the largest island in Vietnam, till September this year.
Fitch Publishes Vietcombank’s ‘B+’ Rating; Outlook Stable
Fitch Ratings published Vietcombank’s Long-Term Issuer Default Rating of ‘B+’ with stable outlook, which reflects the outlook on the sovereign rating.
Fitch Ratings has published Bank for Foreign Trade of Vietnam’s (Vietcombank) Long-Term Issuer Default Rating (IDR) of ‘B+’, with stable outlook. The agency has also published Vietcombank’s Viability Rating (VR) of ‘b-’.