Vietnam top news 2008
- 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.
- Minh Khai Lock company was
caught in faking its own products by stuffing Chinese locks into Minh Khai
packages, 14 Jan.
- Management Board Chairman
of Phuong Nam Bank, Mr. Kiet was arrested for life-threatening the other
two members of the board. 16 Jan.
- 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.
- Stock fell to 744 points,
deleting all the gaining of 2007. 24 January. It later surged back to 860
before Tet holidays.
- 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.
- 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.
- 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%.
- 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.
- Price for construction
materials rised 20-40% compared to Dec 2007 putting many contractors into
loss, delaying many infrastructure projects. 18 Mar 08.
- 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.
- Dollar surged back to 16200
VND at a surprise to most people as dollar was weak worldwide. 27 March.
- 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.
- 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.
- Cholera came back to Hanoi and many other
provinces, April.
- 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.
- During Sakura festival
organized by Japanese Embassy in Hanoi,
6 April, near the end Vietnamese visitors trimmed off flowers from all
three sakura trees.
- 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).
- 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%.
- Earth quake in XiChuan, China
caused shaking in Hanoi's
tall buildings, office workers rushed to streets. 12 May.
- Stock market slumped to
lowest in 2 years, VN Index =460, 17 May.
- 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.
- Dollar jumped to 17500 VND
at free market on 27 May after the HCM stock center was down by
"accident" pushing traders stranded.
- The National Assembly
approved by 92.9% the merging of the whole Ha Tay province to Hanoi, 29 May.
- Secretary General Nong Duc
Manh visits China,
30 May.
- Central bank raised basic
interest rate to 14%. Commercial banks raised deposit rate to 18% for VND
and 8% for USD, June.
- Former Prime Minister Vo
Van Kiet who was the main force of renovation during 1990s, died at 85 in Singapore,
10 June 2008.
- 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.
- Prime Minister Nguyen Tan
Dung visits US, 23-26 June 2008, met President Bush, talked on regional security.
- Stock market has gone down
to 368, 20 June 2008.
- State bank widened exchange
rate margin from 1% to 2%, 26 Jun. Dollar rate stabilized around 16800
VND/USD.
- Party Central Committee
held 7th Conference 15 July, it spent several days on youth motivation
strategy instead of critical macroeconomic issues.
- Petrol price was raised
from 14500VND/l to 19000VND/l, i.e. 31%, at 10am 21 July.
- State owned Electricity of
Vietnam implemented load shedding in June and July, causing frequent power
cuts to all parts, especially outside Hanoi and HCMC.
- Hanoi and Ha Tay officially merged, 1
August 2008.
- 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.
- Vietnam got a silver medal for
weight lifting at Beijing Olympics, 9 August 08.
- 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.
- 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.
- After lowering petrol to
17000 and re-applying the duty, the Ministry of Finance announced the end
to subsidying petrol products, effective 16 Sep.
- 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.
- 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.
- 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".
- State Bank lowered key rate
to 13% in the feeling of eased inflation pressure, 21 Oct. Petrol reduced
to 15500VND/liter (A92).
- PM Nguyen Tan Dung made
official visits to Australia
and China,
23 Oct.
- VN index hit new bottom of
322 points, 28 Oct. CPI went to negative -0.19% for October triggering
euphoria about end of inflation?
- 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.
- 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.
- State Bank reduced basic
interest rate to 12% to boost economy after inflation eased, 5 Nov.
- 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.
- 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.
- 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.
- State Bank cut rate to 10%,
1 Dec. Export slowed down.
- 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.
- 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.
- State Bank cut rate to
8.5%, effective 25/12, banks lowered lending rate to 11% but still had no
borrowers.
- Methane explosion in Quang
Ninh mine killed 12 miners. Gang shooting killed 6 in Quang Ninh. Binh
Duong had 3 horrible murder cases.
- State bank devaluated
nominal exchange rate for USD 3% to 16989VND/USD, effective 25 Dec. The next day SBV decreased the rate to
16987!
- GDP in 2008 grew 6.23% vs
adjusted target of 7% or original target of 9%.
Top News 1998
Top News 1999
Top News 2000
Top News 2001
Top News 2002
Top News 2003
Top News 2004
Top News 2005
Top News 2006
Top News 2007
Back | Home