Vietnam top news 2008

  1. Vietnam Index dropped to 900 points in the first week of 2008. When it hit 808 the Government bought 30 million USD at the market to help foreign investors restock their VND accounts. The next day, 16 Jan VN index jumped.
  2. Minh Khai Lock company was caught in faking its own products by stuffing Chinese locks into Minh Khai packages, 14 Jan.
  3. Management Board Chairman of Phuong Nam Bank, Mr. Kiet was arrested for life-threatening the other two members of the board. 16 Jan.
  4. 6th Conference of the Central Committee. It approved expansion of Hanoi, continuation of salary increase for officials and pilot merging of head of agency and its party secretary, 22 Jan.
  5. Stock fell to 744 points, deleting all the gaining of 2007. 24 January. It later surged back to 860 before Tet holidays.
  6. North Vietnam experienced a record long cold weather period from 13 Jan. Temperature in Hanoi dropped to 7 degrees Celcius and went below zero in mountains of Sapa and Lang Son.
  7. The Central Bank requested commercial banks to buy non-convertible bonds worth 23 trillion VND (at 7.8% per year) to control inflation.Immediately, last week of February became an interest rate racing between commercial banks. Overnight lending shot up to 35%/year and fixed deposite rate jumped to 11-12% per year. People sell dollars to pump VND to bank deposits. The State Bank had to lend 30 trillion VND to banks at rate 15% to fill up liquidity vaacum.
  8. State bank restricts lending to stock and property traders. Stock fell to 690 but house prices did not change in February. House price in Saigon dropped about 10%.
  9. Dollar fell to 15540 VND at free market. State bank did not adjust official rate of 16020 leaving commercial banks an unrealistic rate of 15850 creating great rooms for corruption. State bank widened trade margin to 1% around official reference rate. Export companies suffered badly, 17 Mar 08.
  10. Price for construction materials rised 20-40% compared to Dec 2007 putting many contractors into loss, delaying many infrastructure projects. 18 Mar 08.
  11. Stock Exchange Committee reduced trade margins to 1%/day for HoChiMinh and 2%/day for Hanoi stock centers as Vietnam Index plunged below 500. 25 March.
  12. Dollar surged back to 16200 VND at a surprise to most people as dollar was weak worldwide. 27 March.
  13. Hanoi People's Council approved controversial merging of Ha Tay province, part of Vinh Phuc and part of Hoa Binh provinces to Hanoi Capital. 27 March.
  14. Prime Minister Nguyen Tan Dung released a national message admitting bad economic situation and calling for strong measures to curb inflation. CPI reached 9.2% for the first quarter of 2008, highest for the last 13 years. Sun 30 March.
  15. Cholera came back to Hanoi and many other provinces, April.
  16. Former Vice Minister of Transportation Nguyen Viet Tien was aquited after being held for months. 28 March. Two reporters and two police officers (colonel) were arrested for "wrong reporting and disclosing information" in PMU18 case.
  17. During Sakura festival organized by Japanese Embassy in Hanoi, 6 April, near the end Vietnamese visitors trimmed off flowers from all three sakura trees.
  18. Vinasat-1 communication satellite constructed by Lockheed Martin was launched successfully by Ariane-5 vehicle operated by Arianespace from French Guiana 19 April (Hanoi time).
  19. Rice prices exploded during 26 and 27 April in Saigon and later the price hike spreaded over the country. People emptied rice shelves in supermarkets and shops. Later the price stabilized at 20-30% higher than before the fever. 15% broken rice normal quality stood at 11000VND/kg, high quality rice reached 30000VND/kg. A street Pho bowl costs 15000 VND. Trade deficit for the first 4 months stood at alarming 11.1 bill USD (vs 12.4 bill for whole 2007). YoY price index for April reached 21%.
  20. Earth quake in XiChuan, China caused shaking in Hanoi's tall buildings, office workers rushed to streets. 12 May.
  21. Stock market slumped to lowest in 2 years, VN Index =460, 17 May.
  22. State Bank of Vietnam removed ceiling on deposit interest rate of 12% and raised the basic rate at 12% from 8.5%. However, the new ceiling 18% per year is set for bank lending rate. Dollar jumped to 16450 at free market, May.
  23. Dollar jumped to 17500 VND at free market on 27 May after the HCM stock center was down by "accident" pushing traders stranded.
  24. The National Assembly approved by 92.9% the merging of the whole Ha Tay province to Hanoi, 29 May.
  25. Secretary General Nong Duc Manh visits China, 30 May.
  26. Central bank raised basic interest rate to 14%. Commercial banks raised deposit rate to 18% for VND and 8% for USD, June.
  27. Former Prime Minister Vo Van Kiet who was the main force of renovation during 1990s, died at 85 in Singapore, 10 June 2008.
  28. Foreign Minister of Belgium and his delegation, during official visit to Vietnam, were downgraded from their business tickets to economic class by Vietnam Airlines to give seats to Central Committee members in Hanoi-Saigon flight, 13 June.
  29. Prime Minister Nguyen Tan Dung visits US, 23-26 June 2008, met President Bush, talked on regional security.
  30. Stock market has gone down to 368, 20 June 2008.
  31. State bank widened exchange rate margin from 1% to 2%, 26 Jun. Dollar rate stabilized around 16800 VND/USD.
  32. Party Central Committee held 7th Conference 15 July, it spent several days on youth motivation strategy instead of critical macroeconomic issues.
  33. Petrol price was raised from 14500VND/l to 19000VND/l, i.e. 31%, at 10am 21 July.
  34. State owned Electricity of Vietnam implemented load shedding in June and July, causing frequent power cuts to all parts, especially outside Hanoi and HCMC.
  35. Hanoi and Ha Tay officially merged, 1 August 2008.
  36. Seven journalists had their reporter's ID recollected by the Ministry of Information and Communications. Most controversial of them were two reporters from Thanh Nien and Tuoi Tre related to PMU18 case, 1 August 08. In October one was sentenced for 2 years, one for suspended sentence.
  37. Vietnam got a silver medal for weight lifting at Beijing Olympics, 9 August 08.
  38. Vietnam is in difficult position regarding the Russia-Gruzia conflict. MOFA tried to keep a neutral point while Russia and US pressed VN to support their position in the Security Council.
  39. Start of Gasohol E5 (5% ethanol) sale at price of 16500/lit (vs 17000 for gas A92) by Petro Vietnam Oil, 15 September. It was stopped on 20 Sep by the Ministry of Industry and Trade because of lacking standards for Gasohol.
  40. After lowering petrol to 17000 and re-applying the duty, the Ministry of Finance announced the end to subsidying petrol products, effective 16 Sep.
  41. State Bank of Vietnam increased the inter-bank rate from 16495 to symbolic 16512 at the time when dollar was in surplus and traded 16500-16600 VND, a move believed to prevent trading dollar at too low rate, 12 Sep.
  42. Hanoi People's Committee decided to build a public park on the land at 42 Nha Chung which is claimed by Hanoi Church on 20 Sep and few days later on dispute land at 178 Nguyen Luong Bang, also claimed by the Church. Catholic followers had occupied 178 Nguyen Luong Bang for a month. The decision triggered a strong protests by thousands of Jesus fans. AP reporter Ben Stocking claimed he was bitten by secret police while trying to photograph the park construction. Later 178 Nguyen Luong Bang was decided to be a public park too.
  43. Phone numbers were changed for 10 millions of fixed phone VNPT subscribers, adding digit "3", on 5 October. Viettel followed on 26 Oct, with digit "6".
  44. State Bank lowered key rate to 13% in the feeling of eased inflation pressure, 21 Oct. Petrol reduced to 15500VND/liter (A92).
  45. PM Nguyen Tan Dung made official visits to Australia and China, 23 Oct.
  46. VN index hit new bottom of 322 points, 28 Oct. CPI went to negative -0.19% for October triggering euphoria about end of inflation?
  47. Fire broke out at domestic building of Tan San Nhat Airport. All domestic flights had to move to International terminal, many were canceled. 27 Oct.
  48. Hanoi and neighboring provinces got heavy rains on 31/10 and 1/11. In Hanoi the gauge recorded 420mm (vs. record 390 in 1984). Many streets were flooded. 22 people were killed. Some areas like Tan Mai and Thai Ha were flooded for a week.
  49. State Bank reduced basic interest rate to 12% to boost economy after inflation eased, 5 Nov.
  50. State Bank enhanced the exchange rate margin to 3% while reducing reference rate to 16508, effective 7 Nov. Dollar selling rate jumped to 16950 in banks and 17200 at the free market.
  51. Daughter of Prime Minister Nguyen Tan Dzung married a Vietnamese American Henry Nguyen (Nguyen Bao Hoang), 16 Nov. Before that Vietnamese citizenship (second citizenship) was given to Nguyen.
  52. State Bank cut basic interest rate to 11% and eased cash reserve requirement for commercial banks, effective 21 Nov. Dollar at black market 17380. VN Index fell to 336 on 20 Nov.
  53. State Bank cut rate to 10%, 1 Dec. Export slowed down.
  54. Japan suspended new ODA to Vietnam because of PCI bribery case, Japanese ambassador anounced at CG, 4 Dec 08. Japanese ODA planned about 700 million USD soft loan to infratructure projects in Vietnam in 2008.
  55. There were different talks about economic stimulus packages ranging from 1-6 billion VND with different explainations for sources of funds from tax reduction (which takes effect jan 09), selling government bonds to invest in infrastructure, build low cost houses.
  56. State Bank cut rate to 8.5%, effective 25/12, banks lowered lending rate to 11% but still had no borrowers.
  57. Methane explosion in Quang Ninh mine killed 12 miners. Gang shooting killed 6 in Quang Ninh. Binh Duong had 3 horrible murder cases.
  58. State bank devaluated nominal exchange rate for USD 3% to 16989VND/USD, effective 25 Dec.  The next day SBV decreased the rate to 16987!
  59. GDP in 2008 grew 6.23% vs adjusted target of 7% or original target of 9%.

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