They gave a scenario under which energy demand of the whole economy and all production and service sectors would grow by 22-25% each year.

According the Ministry of Industry and Trade, power consumption of the electricity sector rose by 17-20% annually in the 2006-2010 period. Meanwhile, power supply is expected to rise only 14.1-16% between 2011 and 2015, 11.3-11.6% in the 2016-2020 period and 7.4-9.2% between 2021 and 2030.

Despite increasing demand, the electricity sector still could maintain relatively stable supply in recent years due to stagnant industrial production, explained Do Huu Hao, president of the Vietnam Association of Science and Technology for Energy Efficiency and Conservation.

According to the national power development plan for the 2011-2020 period with the vision to 2030, to meet electricity demand in the country, power production volume and power import of Vietnam must be around 194 to 210 billion kilowatt- hours (kWh) in 2015, from 330 to 362 billion kWh in 2020 and 695 to 834 billion kWh in 2030.

Therefore, the electricity sector from now to 2020 is expected to need an investment capital of around VND929,700 billion, or US$48.8 billion, which is equivalent to US$4.8 billion each year. In the 2021-2030 period, the sector is estimated to need over US$75 billion of investment.

The high demand for power production also brings many investment opportunities for local and international enterprises. They can join power plant projects in Vietnam via many channels such as credit, bond, direct investment under BOT (build-operate-transfer), IPP (independent power producer), PPP (public-private partnership) formats or M&A (merger & acquisition) deals.

However, to attract investors, the power price should be revised up in the future compared to the current average of VND1,242 a kWh, which is said to be lower than the production cost for many power projects.

The Saigon Times Daily

Lam said the satellite had attracted both local and foreign clients, including the current customers of Vinasat-1 and the new ones. Still, he declined to reveal the specific names.

Although VNPT also targets clients in the regional countries, the State-run group pays more attention to the domestic market.

VNPT deputy general director Phan Hoang Duc said it will take ten years to recover the investment capital in Vinasat-2, which has a life span of 15 years like the first telecom satellite. The total satellite capacity rents of Vietnamese customers are estimated at US$10-15 million a year.

Lam said after four years of operation, Vinasat-1 is now running at 90% capacity. It is expected that Vinasat-1 will bring in VND250 billion this year, excluding a 30% capacity used for VNPT’s own services.

Duc unveiled VNPT’s plan to invest in the third satellite in the next 3-4 years.

Regarding the launch on Wednesday, sources from VNPT said the first signal from the satellite had been transmitted back to earth on Wednesday.

Bui Quoc Viet, director of the Information Center under VNPT, told local media that the satellite would be orbiting around the earth for the next ten days before it achieves stable operation. The contractor Lockheed Martin would hand over the satellite control to VNPT in early July.

VNPT has invested US$280 million in Vinasat-2. The satellite applies A2100A frame technology, one of the most advanced satellite technologies at present.

Similar to Vinasat-1, Vinasat-2 is produced by the U.S. aerospace firm Lockheed Martin and was launched on an Arian 5 rocket made by Arianespace at Kouru space launch site in Guyana, South America. The two satellites provide coverage over Vietnam, Laos, Cambodia, Thailand, Myanmar, Singapore and a part of Malaysia.

Because the two satellites are in close orbits with each other, customers can use the same satellite dish to receive signals from both of them.

Vinasat-2 is designed with 30 Ku-band transponders (36MHz bandwidth), with a transmission capacity equivalent to 13,000 voice channels or some 150 TV channels.

Vinasat-2, together with Vinasat-1, will form a system of satellites capable of enhancing safety and stability when providing satellite services to customers. In addition, the two telecom satellites will help strengthen the national network security and offer general benefits to the community.

Prime Minister Nguyen Tan Dung, after watching the launch at VNPT headquarters on Wednesday, said the launch of Vinasat-2 is an important step further on the route to make Vietnam a strong country in information technology and telecommunications.

The Vinasat-1 and Vinasat-2 projects have great political and socio-economic meanings, affirming the sovereignty of Vietnam in space and promoting the image of the country in the international arena, said the Prime Minister.

Vu Tuan Hung, general director of VNPT, said the launch of Vinasat-2 is aimed at the national strategic target to enhance the capacity of telecommunication infrastructure, satisfy the demand for satellite capacity rental and efficiently exploit the satellite frequency and orbit resources that Vietnam has registered at 131.8 degrees east.

Vinasat-2 is also designed to serve the sea economic development strategy of Vietnam, says a report on the Government web portal www.chinhphu.vn.

The Saigon Times Daily

A staff member inspects eBon ham products at a Big C workshop. The French-invested supermarket has registered to put these products under the city’s price stabilization program - Photo: Minh Tam

Big C supermarket chain has registered to join the price stabilization program in HCMC with pork and a number of goods bearing its own brands available on shelves.

According to Le Ngoc Dao, deputy director of the city’s Department of Industry and Trade, Big C has sent its registration form to the department, saying it wants to take part in the program with pork and Wow-labeled products as its own brand at its stores citywide. The French-invested supermarket says it will not receive soft loans which are designed to support participating firms in the program.

At the request of the local government, on Wednesday inspectors in charge of the price stabilization program had a fact-finding trip to the pork and eBon ham processing workshop of Big C to check the products’ quality. After the trip, the inspectors will submit the result to the city’s leaders for the final conclusion.

Duong Thi Quynh Trang, Public Relations manager of Big C, said her supermarket buys pork from D&F Food Processing Factory under Dong Nai Industrial Food Corporation, San Miguel Pure Foods Company (Vietnam) in Binh Duong Province and the supplier Hoang Thy in Dong Nai Province. Besides, the supermarket has commodities bearing its brands produced by other local partners.

The Saigon Times Daily

Speakers share their views at the seminar named “Macro-economy and stock market 2012” held by Kim Eng Securities Company - Photo: Thanh Thuong

Speakers at the seminar “Macro-economy and stock market 2012” held by Kim Eng Securities Company on Wednesday shared the optimistic view that the equity market will take on the uptrend this year.

Economist Tran Du Lich, a member of the National Assembly (NA) Economic Committee, said the investment channels like real estate, gold and savings will hardly gain high profit in the coming time, while the stock market will become an attractive investment channel as it recovers sooner than the economy.

Michael Kokalari, research director of Kim Eng Vietnam, forecast the bailout package for the economy will create a stronger cash flow into the stock market. This is an important condition for the stock index to go up.

Investors now have many opportunities but are still waiting for the market to stop falling, said Kokalari. The market needs to take a rest before bouncing back, he noted.

“I don’t believe the VN-Index will plunge to below 440-445 points,” he said.

NA deputy Lich stressed Vietnam is facing multiple short-term difficulties, such as how to handle the relationship between consumer price index (CPI) and gross domestic product (GDP). It will take time to find whether GDP growth will be maintained at 6.5% or pulled down to 5.5%, how interest rate cuts will be carried out and how to reduce inventories and boost consumption.

Holding a not-so-pessimistic view, Lich said signs of recovery have emerged. Although the index of industrial production only inched up 4% in the first four months of the year, versus 10% in the same period last year, the index of processing industries increased by 7.5% and 9.3% in March and April respectively, Lich said.

He predicted recovery will speed up by the end of the second quarter and the year’s economic growth will reach 5.5%.

From an angle of an economic expert, Lich forecast CPI growth this year will be 5-6%, against the Government’s target of below 10%. He said the fiscal and monetary policies should be utilized to stimulate demand to prevent the economy from falling into stagnation.

In early 2011, enterprises experienced a forex rate shock when the central bank advised up the forex rate by 9.3%, plus power and fuel price hikes as well as surging global goods prices, sending local businesses into tailspin. However, stable forex rate, easing inflation and lower interest rates this year offer conditions for enterprises to make business plans, said Lich.

He stated enterprises must save themselves and the Government’s bailout can only solve the temporary problems.

The Saigon Times Daily

An artist’s view of Chateau villas and townhouses in HCMC’s District 7 developed by Phu My Hung Corporation - Photo: Courtesy of PMH

Phu My Hung Corporation (PMH) continues putting the rest of high-end Chateau villas in District 7’s Phu My Hung new urban area for sale following its market survey conducted in the first sale offer.

The remaining 41 villas of the Chateau project are currently on sale at a price of VND30-90 billion per unit. Last year, PMH launched the sales of 35 villas and 12 townhouses ranging from 510 to 770 square meters of this luxury project.

Villa prices on the market have continued the downtrend over the past months.

The average price of mid-end and low-end villa projects in the first quarter dropped 7% against last quarter, according to a market survey by Savills Vietnam

No new project has entered the market over the past quarter.

The first quarter saw high-end property market posting a transaction success rate of about 5%

Despite uncertainties in the property market, luxury villas with prime locations, private living environment and good amenities remains favorable to wealthy people, Savills reckoned.

Savills estimated more than 140 villa and townhouse projects will supply the city’s market with approximately 60,000 dwellings within the next eight years.

The Saigon Times Daily

All top movers on bourse had below three million shares traded, in which Hoang Quan Consulting–Trading–Service Real Estate Corp. (HQC) and Sacom Development and Investment Corp. (SAM) were leaders in terms of volume with 2.7 million units each. PetroVietnam Fertilizer and Chemicals Corp. (DPM) was the most active in value with VND53 billion traded.

Foreigners drained VND55 billion out from the bourse, selling mostly BVH and DPM while injecting VND10 billion in STB. They accounted for 11.9% and 16% of the market’s buying and selling value respectively.

The Hanoi market suddenly bounced although turnover narrowed to VND651 billion. The HNX-Index added 0.74 point, or 0.96%, against the previous session and ended the day at 77.55.

Gainers slightly outnumbered losers by 152 to 123, including 26 stocks shooting up to the ceiling prices and 48 stocks plunging to the floor prices. Foreigners turned net buyers, accounting for 4% of the buying value and 1.4% of the selling value.

HCMC Securities Co. said both indices fluctuated during the day with a seesaw battle between bulls and bears.

“We seem to have found a level where some investors are willing to buy back in suggesting that the market may bounce over the next day or two. But it is far too early to say if the correction is over yet,” it said in a report on Wednesday.

Meanwhile, Viet Capital Securities Co. thinks the HNX-Index’s rebound is only a flash in the pan or how others call it a “bull trap” and keeps short-term price targets of 435 and 74 points while not recommending further positions until there are fresh buy signals.

“For now, we just stick to our short-term positions, MBB and VIC and medium-term positions in MSN and VIC. They are all down, absolutely, while the positions overall are outperforming the VN-Index and HNX-Index,” it said.

The Saigon Times Daily

Dang Tuyet Dung (C), a representative of Techcombank, hands a symbolic Techcombank Visa Platinum card to the fi rst customer on Tuesday - Photo: Quoc Hung

Vietnam Technological and Commercial Bank, or Techcombank, on Tuesday introduced Techcombank Visa Platinum card, a product for businesspeople, high-raking office staff and VIP customers.

The product provides a credit limit of up to VND1 billion and allows holders to pay for goods and services at over 30 million points of sale worldwide. Cardholders can also withdraw money from over two million ATMs and use the cash advance service of up to US$2,000 in case of emergency.

The Techcombank Visa Platinum card is the only product in Vietnam providing Concierge and Lifestyle services in Vietnamese and English. The services give information and help clients arrange working schedules 24 hours a day.

The Saigon Times Daily

Eximbank’s deputy chairman Pham Trung Cang said the bank’s credit growth contracted 5 per cent in the first four months of 2012.

The bank saw a slow disbursement pace even with preferential credit packages catered to corporate customers in priority areas such as import-exports, supporting industries and small- and medium-sized enterprises.

“Our bank revised lending rates to suitable levels for firms even when the government has yet to cap lending rates at 15 per cent, per year to some priority areas. With good customers, the bank willingly lends out at rates below the current ceiling rate. But, it is rather hard to find out good customers in this current context,” said Cang.

Cang said fewer firms wanted to borrow in the face of sinking consumption.

“Our bank can hardly accomplish the assigned credit growth of 17 per cent for 2012 if no improvements are seen until the year’s end,” Cang said.

While interest pressure is one factor leading to firms’ low capital absorption, bank executives said dwindling output market and rising unsold stock was the largest hindrance facing firms.

ACB general director Ly Xuan Hai said the interest rate was not the single decisive factor to firms’ decisions to borrow.

At ACB, credit growth in the first four months was below expectations against a stable growth in deposit amount. ACB then needed to exert much energy into making its 17 per cent assigned credit growth achievable in 2012, according to a bank source.

Ho Chi Minh City-based HDBank saw its credit growth sink 5 per cent in the first quarter of 2012.

“We cannot lend out at any cost while finding good customers with feasible business plans is extremely hard in current context,” said HDBank’s general director Nguyen Huu Dang.

HDBank succeeded in controlling bad debts at below 1.63 per cent by late 2011. This year, the bank manages to keep this rate of less than 2.5 per cent.

Orient Commercial Bank (OCB) credit growth contracted 2 per cent by mid April 2012.

National Financial and Monetary Policy Advisory Council member Tran Du Lich assumed rising bad debts was a stumbling block to credit growth, hence parallel to dealing with weak banks, the State Bank needed to shortly address the banking system’s bad debt dilemma, paving the way for credit expansion.

Vietnam Investment Review

This has been hailed as an “exploit” created by the “coordination” between the fiscal and monetary policies, between the policy on tightening public spending and the policy on tightening credit.

However, Le Hai Mo, Deputy Head of the Institute for Financial Strategy and Policy, an arm of the Ministry of Finance the coordination can be seen in settling short term problems, while the two policies have not been on the same tone when dealing with long term matters.

“It’s necessary to clarify the function of managing the fiscal policy of the Ministry of Finance and the function of managing the monetary policy of the State Bank,” said Ha Huy Tuan, Deputy Chair of the National Finance Supervision Council.

“If not, when the high inflation returns, the State Bank would blame the inflation on unreasonable fiscal policy, while the finance ministry would blame on the monetary policy,” he added.

Chief Secretariat of the State Bank of Vietnam Dao Minh Tu, on one hand, said the fiscal and monetary policies in 2008-2011 were consistent in implementing the most important tasks for the national economy: they both opened to put brake on the economic recession, or both tightened to fight against inflation.

“However, the efficiency in the coordination in implementing the two policies remains limited. In some cases, the “dephasing” of the two policies badly affected the implementation of macroeconomic tasks,” Tu said.

In order to stop the economic slide, the monetary policy was loosened, which, together with the opened fiscal policy in 2009 and 2010, helped Vietnam escape the economic recession quickly, with the GDP growth rate of 5.3 percent. However, the high inflation risk still existed.

In order to fight against inflation in 2010, the monetary policy was gradually tightened (the credit growth rate decreased from 37.53 percent in 2009 to 31.19 percent in 2010). Meanwhile, the fiscal policy was opened, especially in the public investments. As a result, the inflation rate in 2010 was really high at 11.75 percent, which was nearly double that of 2009 (6.8 percent).

In 2011, in order to fight inflation, both the fiscal and monetary policies were tightened. However, the fiscal policy was not tightened drastically enough. Meanwhile, with the tightened monetary policy, the credit growth rate in 2011 dropped to 14.47 percent, which then pushed the inflation to 18.13 percent.

Also according to Tu, in many cases, the two policies were adjusted in “separate ways”, without a close cooperation, which then led to the conflict and reduced the efficiency of macroeconomic management.

In the first months of 2012, while the State Bank made every effort to slash the lending interest rates to help businesses reduce the production costs, the Ministry of Finance still raised the petroleum retail prices. The two decisions made by the two ministries clearly led to the two different effects.

According to To Kim Ngoc, Deputy Head of the Banking Academy, while the State Bank has been trying to slash the interest rates since late 2011, the Ministry of Finance still has been issuing government bonds for public spending at sky high interest rates.

Especially, experts have noted that the Vietnamese government bonds’ interest rates are even higher than the Greek bonds’ interest rates, the economy which has fallen into debt crisis (approximately 11 percent vs. 9.7 percent per annum)

VietNamNet, Thoi bao Kinh te Vietnam

With eight members of the board of directors and three members of the supervision board, each member would get 4 billion dong in pay in 2012.

As for VIB Bank, the pay of one percent of pretax profit has proposed for the members of the board of directors and the supervision board. Meanwhile, the pay would not be lower than 13.3 billion dong in any cases.

A lot of shareholders expressed their dissatisfaction about the proposed pay levels, saying that the levels are overly high if compared with the pay by big enterprises which have the profits higher by 2-3 times than VIB.

The dissatisfaction of shareholders has been anticipated, because the pay for “VIP” is always inversely proportional with shareholders’ dividends. If banks pay higher to VIP, the sum of money reserved for paying dividends would be lower.

The pay by big joint stock banks, where the State holds controlling stakes, prove to be lower than that in private banks, but the incomes of the bosses are still very high.

Vietcombank, for example, plans to pay 0.28 percent of post tax profit, or 13.9 billion dong, to VIPs in 2012. Explaining the suggested pay level, the bank said it considers the basic business targets, the number of the members of the board of directors, and refer to the pay levels paid by some other banks.

In 2011, the bank’s VIP also received 0.28 percent of the post tax profit, or 11.8 billion dong.

As for Vietinbank, with the targeted pretax profit of 9 trillion dong, the managers of the bank have proposed the pay for the board of directors and supervision board at 0.3 percent of post tax profit.

Meanwhile, the Bank for Investment and Development of Vietnam BIDV plans to pay 19 billion dong to its VIPs in 2012.

High proposed pay to VIP discontent small shareholders

Most commercial banks intend to either keep the pay levels unchanged or raise the pay to the board of directors and supervision board, saying that 2012 would be a very tough year for banks, which means that the managers would bear a hard pressure in their works and they need to be rewarded adequately.

The high suggested pay to banks’ bosses has raised strong opposition from small shareholders, who said that in principle, the income should be lowered in the context of economic difficulties, and it would be unreasonable if the bankers take full advantage of the current difficulties to require big money.

Nguyen Hoang, a small shareholder of a private bank in Hanoi, has complained that the bank’s boss nearly ignores shareholders’ interests. He said that the bank only pays low dividends to shareholders every year, while the pay to important persons of the bank is always sky high.

“Even though we feel discontented about the profit sharing, we can do nothing, because the law does not protect the small shareholders like us,” Hoang said.

Meanwhile, a member of the board of directors of a bank said in fact, he and other members of board of directors do not rely on the pays to live. He said that in return for the high income of nearly 100 million dong a month, they have to work hard and take responsibility for the banks’ operation.

A US dollar is equal to 21,000 Vietnam dong.

VietNamNet