Rumours have been spread these days that the State Bank of Vietnam plans to slash the basic interest rate. However, no representative from commercial banks who were present at the workshop on the interest rate policy held in Hanoi on April 8 wants to believe that this will become realistic.

VietNamNet Bridge – New business strategies have changed the way banks use and mobilize capital, as well as changed the profit flow. In 2008, despite the big difficulties, the total assets of banks still grew considerably: Techcombank’s assets increased by 51%, reaching VND 59.5 trillion, Sacombank increased 5% and VND 67.7 trillion, Eximbank increased 45%, and East Asia Bank increased 26%.

VietNamNet Bridge – The State Bank of Viet Nam yesterday widened the daily trading band for USD/VND to from +/-3 per cent to +/-5 per cent against the official interbank rate to enhance the flexible adjustment of the economy. The decision was effective today, stated the central bank's website.

March 24 (Bloomberg) -- The Vietnamese dong fell the most in three months after the central bank widened the currency’s trading band for the first time since November, seeking a weaker currency to boost exports.

VietNamNet Bridge – After selling US $100 milionl worth of bonds on March 20, the Ministry of Finance continues to auction US $200 million worth of Government bonds on March 24 and 27. Associate Professor Dr. Tran Hoang Ngan, Member of the National Advisory Council for Monetary Policies talked about the bond issuance.

VietNamNet Bridge – Foreign experts have called on the Government to rapidly streamline administrative procedures to make life easier for businesses and thus win the confidence of foreign investors, particularly at a time of economic hardship.

The Government of Viet Nam had no plan to adjust the current foreign exchange rate, said State Bank of Viet Nam Governor Nguyen Van Giau. The central bank had the capacity to balance supply and demand for the US dollar, he said. Giau was responding to predictions the bank would appreciate the dollar and that the greenback supply was low. Neither of which was correct, he said.

Nearly three years have passed since the laws on Enterprises and Investment took effect in July 2006. These two laws opened new opportunities to foreign investors by levelling the playing field for both domestic and foreign investors. But, three years on, there have been some shortcomings as well.

The Ministry of Finance has issued rules specifically for the establishment and operation of foreign representative offices related to securities in Viet Nam. There are only about 10 international representative offices which have been granted operation registration certificates by the State Securities Commission (SSC). Dozens of foreign representative offices are also operating without being licensed by the SSC. The new rules are a move to legalise and standardise the operation of these firms using more specific regulations.

Vietcombank convertible bonds have been trading at around VND104,000 (US$6.50) each, below the average share price of VND107,860 ($6.74) achieved in the banks IPO last week. In 2005, the bank sold 13.65 million convertible bonds with a face value of VND100,000 ($6.25) each. They sold in a flash, even with foreign investors barred from bidding, snapped up by 134 institutional and individual investors at an aggregate price of VND1.36 trillion (over $85 million).