[Update] Vietnam on Bloomberg, Reuters, WSJ

[b]Vietnamese Bonds Advance on Speculation More Rate Cuts Coming[/b] By Bloomberg News - May 31, 2012 5:32 PM GMT+0700 [B]Vietnam’s two-year bonds advanced, pushing the yield down by the most in more than two weeks, on speculation slowing growth will prompt more interest-rate cuts. The dong was steady.[/B] Deputy Prime Minister Nguyen Xuan Phuc said on May 21 that the economy is showing [B]signs of a slowdown[/B]. The country reduced borrowing costs for a third month in May. Gross domestic product increased 4 percent in the first quarter, the least since 2009, official data show. “We expect another 200-300 basis points of rate cuts over the next six to nine months as growth risks take precedence over inflation concerns,” Vishnu Varathan, a Singapore-based economist at Mizuho Corporate Bank Ltd. wrote in a research note yesterday. The yield on the two-year bonds fell 21 basis points, or 0.21 percentage point, to 8.94 percent today, the most since May 15, according to a daily fixing rate from banks compiled by Bloomberg. The yield on the five-year notes dropped two basis points to 9.61 percent. The yields on the two tenors decreased 1.81 percentage points and 1.04 percentage points this month. The State Treasury sold 55 percent of the 2 trillion dong ($96 million) of two-year debt offered at an auction this week but only 27 percent of the 3 trillion dong of five-year securities, according to a statement on the stock exchange’s website. “Banks may be preferring government bonds with shorter terms,” said Ha Thi Quynh Trang, a Hanoi-based fixed-income trader at Bank for Investment & Development of Vietnam. “The economy may not be stable in the next few years.” The dong was little changed today and this month at 20,868 per dollar as of 4:20 p.m. in Hanoi, according to data compiled by Bloomberg. The State Bank of Vietnam set the currency’s reference rate at 20,828, unchanged since Dec. 26, according to its website. The dong is allowed to trade as much as 1 percent on either side of the rate. To contact Bloomberg News staff for this story: Diep Ngoc Pham in Hanoi at [email]dpham5@bloomberg.net[/email] To contact the editor responsible for this story: Sandy Hendry at [email]shendry@bloomberg.net[/email]

[b]Investors believe in VN’s long-term growth[/b] (31/05/2012) [B]At the Vietnam Business Forum (VBF) on May 29, investors expressed their continued belief in Vietnam’s long-term growth, as macro-economy has improved due to the Government’s timely effective measures.[/B] The VBF is a dialogue channel between the Vietnamese Government, business community in Vietnam and international donors. According to Mr. Vu Tien Loc, President of the Vietnam Chamber of Commerce and Industry (VCCI), many enterprises are facing difficulties in production and business. The Government on May 10 issued a resolution on some measures to remove the obstacles against them. At the forum, foreign investors said they want[B] stronger transparency[/B] in investment and business in Vietnam, shorter time for licensing investment projects, especially in such big cities as Hanoi and Ho Chi Minh City. To lure more foreign direct investment, especially in [B]hi-tech sector[/B], Vietnam should effectively implement laws and regulations on intellectual properties. Country Director of the World Bank in Vietnam, Ms. Victoria Kwakwa, said the rapid economic growth has become a springboard for poverty reduction and life quality of Vietnamese people, so slower growth can affect the society. Recent growth-accelerating measures taken by the Government should be more inclined to long-term, she said. At the forum, the State Bank of Vietnam and the Finance Ministry were asked to allow foreign investors to raise the stake they can hold in banks in Vietnam, [B]currently capped at 20%[/B]. [B]Strategic partners[/B] should hold stakes of [B]up to 30%[/B]. Speaking at the event, Deputy Prime Minister Vu Van Ninh said Vietnam’s economy is still facing numerous difficulties, thus, the Government would be keen on curbing inflation, stabilizing macro-economy, maintaining reasonable growth along with renovating growth model and restructuring the economy. He said the Government would issue policies to improve the country’s business environment toward sustainable development. PV (source: chinhphu.vn)

[b]Finance companies may be merged with banks[/b] 31-May-2012 Intellasia | Vneconomy | 1:41 PM [B]The State Bank of Vietnam (SBV) is drafting a circular guiding the reorganisation of credit institutions, creating a legal basis to promote the restructuring process.[/B] When finalised and issued, this will be an important document following the central bank’s Circular No 04/2010/TT-NHNN stipulating [B]the merger, consolidation and acquisition[/B] of credit institutions. The scope of the [B]draft circular[/B] will be conditions, dossiers, order and procedures for approving the reorganisation of credit institutions in Vietnam. The reorganisation of credit institutions as provided in the draft circular covers only the merger, consolidation and changes of legal form of credit institutions. Accordingly, forms for merger and consolidation of credit institutions are determined in five cases including banks, finance company being merged into a bank, finance company being merged into another finance company, financial leasing company to be merged into another financial leasing, people’s credit fund to be merged into another people’s credit fund; microfinance institution to be merged into another microfinance institution. In addition, the draft circular also specified many cases and gave more detailed guidance on the implementation of the legal forms for the transfer of credit institutions. As originally drafted, [B]this provision will ensure the legacy of provisions in Circular No. 04/2010/TT-NHNN[/B] stipulating the merger, consolidation and acquisition of credit institutions and comply with the contents in the Law on Credit Institutions and Business Law, at the same time avoid legal troubles that may arise from the merger and consolidation amongst credit institutions.

[b]Vietnam Scandal to Boost State Firm Disclosure: Southeast Asia[/b] By Bloomberg News - May 31, 2012 3:22 PM GMT+0700 [B]Vietnam’s state-owned companies, accounting for a third of the economy, are set to begin publishing audited earnings as the government boosts oversight and reassures investors after losses and corruption scandals.[/B] The companies will all have to publicly post results online at least once a year under rules expected to be signed by Prime Minister Nguyen Tan Dung within the next few weeks, Dang Quyet Tien, deputy head of the finance ministry’s corporate-finance department, said in an interview in Hanoi. In some cases, financial statements will be required quarterly, he said. “It’s a fundamental change,” Tien said. State-owned companies will be required to publish information including sales, profit, losses, debt, return on assets, return on equity, cash flow and salary ranges, he said. Unlisted state companies only compile earnings once a year at present and there is no requirement to release the data publicly. The regulations, which will probably come into effect in the second half, will also detail ministries’ responsibility over companies as well as potential penalties, Tien said. Vietnam is stepping up scrutiny as police seek an ex-head of the nation’s biggest shipping line accused of mismanagement and after eight shipyard executives were jailed for losses in March. “We’ll need to improve our accounting and reporting process, but that’s good,” said Nguyen Van Bien, deputy general director of state-owned Vietnam National Coal-Mineral Industries Group, the country’s biggest miner. “More detailed results will help the government grade companies better, and investors will have more information before investing.” [B]KPMG, Ernst & Young[/B] Under the new regulations, state companies will appoint independent auditors to examine their financial statements before they are posted online, Tien said. The companies will be encouraged to select from among the largest international auditors such as KPMG LLP, Ernst & Young LLP, Deloitte Touche Tohmatsu Ltd., PricewaterhouseCoopers LLP, he said. “It would be great if the government could begin to impose discipline on these firms, through transparency and forcing them to announce to the world exactly how they make their money,” said Jonathan Pincus, a Ho Chi Minh City-based economist at the Harvard Kennedy School’s Vietnam program. “The public tolerance for very risky speculation in the state sector is zero at this point.” Concerns about a lack of financial transparency contributed to Standard & Poor’s downgrading Vietnam to BB-, three levels below investment grade, in December 2010. Moody’s Investors Service cut its rating on the country to B1, four below investment grade, the same month. [B]Slowest Improvements[/B] Vietnam has encouraged state-owned companies to list on the stock exchange and sell non-core businesses to tackle inefficiencies that have weighed on the economy. The nation’s industrial productivity grew an average of less than 1 percent annually over the past decade, the slowest rate in Southeast Asia, according to a Jan. 20 Harvard Kennedy School policy discussion paper, based on World Bank’s Development Indicators. The state sector’s share of the economy has declined to 33 percent of GDP in 2011 from 40 percent in 1994, while the foreign share has increased to 19 percent in 2011 from 6 percent in 1994, said Art Woo, a Hong Kong-based director of sovereign ratings at Fitch Ratings. The police said this month they are searching for Duong Chi Dung after the ex-chairman of Vietnam National Shipping Lines fled his home in Hanoi on May 17. Dung, who has been suspended from his current post as head of the Vietnam Mari-time Administration, is accused of “intentionally violating state regulations on economic management, causing serious consequences,” according to a posting on the government website last week, citing Col. Tran Duy Thanh, head of the economic- crime investigation bureau. [B]Falsifying Contracts[/B] Dung and two other former executives at the ship and port operator, known as Vinalines, were allegedly involved in falsifying contracts that raised the cost of a floating dock to $24.3 million from $14 million in 2007, according to a May 22 posting on the government website. “The Vinalines case has created pressure on the government to move faster with rules to scrutinize companies,” said Nguyen Duc Kien, deputy head of the National Assembly’s economic committee. “It had discussed this before, but hadn’t done much.” Former executives at Vietnam Shipbuilding Industry Group were imprisoned for as long as 20 years in March after a probe into the company’s near collapse in 2010 under $4 billion of debt. Vietnam Electricity Chairman Dao Van Hung was also fired in February after the power company lost 11.5 trillion dong over two years, according to postings on the government website. “We are concerned when we hear stories, reports about problems in the state enterprise sector,” Victoria Kwakwa, the World Bank’s Vietnam country director, said May 28. “You need to ensure accountability. You need to have clear targets for performance that SOEs are held accountable for. You need modern, clear management and governance.” To contact Bloomberg News staff for this story: Nguyen Dieu Tu Uyen in Hanoi at [email]uyen1@bloomberg.net[/email] To contact the editor responsible for this story: Neil Denslow at [email]ndenslow@bloomberg.net[/email]

[b]Billionaire City Belies Capitalism’s Victories[/b] By William Pesek Jun 1, 2012 2:00 AM GMT+0700 Suddenly, it’s not much fun being Hong Kong. [B]Riding the dragon’s tail[/B] was thrilling while it lasted. The 10 years after China joined the World Trade Organization in 2001 saw one of history’s greatest booms, one that bestowed enormous riches on the city of [B]7 million people[/B]. The ranks of Hong Kong’s billionaires swelled along with hubris about its central place in the Asian century. That was until the Chinese slowdown, which almost everyone said could never happen. Data on China’s trade, production and construction paint a grim picture, as do Europe’s debt crisis and slowing world growth. Hong Kong’s wide-open economy might have a problem that few want to admit: It may be a case study in the flaws of one brand of capitalism. The city is more than a proxy for concerns about China. It’s a laboratory for the brand of finance-driven capitalism that not so long ago was heralded as the model for others to follow. Small, laissez-faire Hong Kong was the world’s special- enterprise zone. Now the world awaits a judgment on [B]the Anglo- Saxon economic model.[/B] [B]Economic Canary [/B] As test cases go, Hong Kong hardly looks like a breakthrough. The free-market crowd adores the city for its low taxes, unrestricted entry of foreign capital and rule of law. It is routinely ranked the freest economy anywhere. Never mind that its leader is picked by China; its currency is pegged; it is home to the only state-backed Disney theme park; and a handful of oligarchs rule the place. To the true believers, this is market-freedom central. Yet what have Hong Kongers gotten out of their emancipated economy? The [B]highest income-inequality gap in Asia[/B]. A widening divide between rich and poor is tolerable if it is tempered with hope that it is bridgeable. But Hong Kong’s government is failing on this front. Politically connected tycoons have enriched themselves from monopolies in power generation, real estate, transportation and telecommunications. The 99 percent are falling further behind. Hong Kong’s plan to ride out the global financial storm was twofold: First, encourage visits from [B]28 million mainland tourists[/B] a year to splurge at luxury shops; second, to spur immigration by hyper-wealthy bankers seduced by beggar-thy- neighbor [B]tax policies[/B]. It isn’t clear that the opportunities created by this strategy are empowering locals to share in Hong Kong’s growth in the long run. Promoting itself as the center of offshore yuan transactions doesn’t look like a long-term growth strategy, either. Once China brings those markets onshore, Hong Kong may be left out of the loop. The school system churns out well-trained young people, but Hong Kong’s job-creation machine is coming up short. True, unemployment is just 3.3 percent. But what does the average Hong Konger who can’t get a job at HSBC Holdings Plc or billionaire Li Ka-shing’s Cheung Kong Group do for work? Pouring concrete, driving a bus or selling Gucci sunglasses or Prada shoes to their wealthy mainland cousins is fine, but do these jobs fulfill Hong Kong’s promise as an economic Mecca? Local leaders seem clueless about all this. Donald Tsang, Hong Kong’s chief executive, dismissed the wealth gap as a byproduct of capitalism. Economics 101 tells Tsang that he can no more ignore the fallout from growing inequality than residents can overlook their city’s worsening air quality. [B]Clueless Leaders[/B] And then there’s Henry Tang, who thankfully lost his bid to replace Tsang come July. Tang’s “Basement-gate” scandal left Hong Kong residents aghast as they were squeezed by surging rents and living costs. His lavish and illegally constructed underground playpen enraged the masses. Not the most perceptive head in the crowd, Tang says there’s ample proof that Hong Kong’s model works: Just look at the steady influx of chief executives and bankers. Tang’s basement, replete with wine cellar and movie theater, became a rallying cry. So might the widening ethics investigation focusing on Tsang’s overseas trips on the yachts and jets of business owners. It is feeding outrage over the collusion between politics and the corporate world, not unlike the one sweeping the mainland. [B]The Bo Xilai scandal[/B] is shining a bright and unsparing spotlight on official corruption in China and how it stymies much-needed economic and political reforms. The epic wads of cash being amassed by the so-called princelings, the descendants of the [B]Mao Zedong leadership generation[/B], are making huge waves in the Chinese blogosphere. The timing poses a challenge to the legitimacy of China’s elites as the nation’s economic outlook turns negative. [B]Hong Kong has its own troubles with billionaires[/B]. The arrest of the Kwok brothers in March offered the possibility that Hong Kong was finally clamping down on the rich and unaccountable. In time, we will know if the bribery case against Raymond and Thomas Kwok, co-chairmen of Sun Hung Kai Properties Ltd., is a pivotal moment. Yet if the world’s showcase economy can’t get things right, [B]what hope is there for China? Or Vietnam and Myanmar, for that matter?[/B] Not much when the bellwether of this version of capitalism seems to be pointing in the wrong direction. (William Pesek is a Bloomberg View columnist. The opinions expressed are his own.) [B]About William Pesek[/B] William Pesek is based in Tokyo and writes on economics, markets and politics throughout the Asia-Pacific region. His journalism awards include the 2010 Society of American Business Editors and Writers prize for commentary. Read more opinion online from Bloomberg View. To contact the writer of this article: William Pesek in Hong Kong at [email]wpesek@bloomberg.net[/email] To contact the editor responsible for this article: James Greiff at [email]jgreiff@bloomberg.net[/email]

[b]Vietnam Equity Movers: Mirae, Vinh Hoan, Ba Ria Thermal Power[/b] By Bloomberg News - Jun 1, 2012 12:47 PM GMT+0700 Shares of the following companies had unusual moves in Vietnam trading. Stock symbols are in parentheses and prices are as of the 11:30 a.m. break in Ho Chi Minh City. The VN Index (VNINDEX), the benchmark measure of the Ho Chi Minh City Stock Exchange, advanced 0.3 percent to 430.60. The gauge has declined 1.6 percent this week. Mirae Joint-Stock Co. (KMR) , which produces materials for the garment and textile industry, rose 4 percent to 5,200 dong, poised for the highest close since May 25. The company plans to sell 6 million new shares at 10,000 dong each, according to a filing on its website. Vinh Hoan Corp. (VHC) gained 1.4 percent to 37,500 dong. The seafood company plans to pay a 2011 dividend of 1,000 dong a share on Aug. 10, according to company figures posted on the exchange’s website. Ba Ria Thermal Power Joint-Stock Co. (BTP) , which generates electricity from gas turbine plants, advanced 4.9 percent to a one-week high of 6,400 dong. The company will pay a 2011 dividend of 700 dong a share on July 2, it said in a statement on the exchange’s website. To contact Bloomberg News staff for this story: Nguyen Dieu Tu Uyen in Hanoi at [email]uyen1@bloomberg.net[/email] To contact the editor responsible for this story: Darren Boey at [email]dboey@bloomberg.net[/email]

[b]Vietnam to cut dong deposit ceiling to 9 pct-newspaper[/b] HANOI, June 1 | Thu May 31, 2012 9:50pm EDT [B](Reuters) - Vietnam's central bank may cut the ceiling rate on dong deposits by 2 percentage points to 9 percent later this year to help boost lending to facilitate economic growth, a state-run newspaper said on Friday.[/B] The downward adjustment would be the last in 2012, the central bank was quoted by the ruling Communist Party-run Nhan Dan (People) daily as telling bankers at a meeting on Thursday. The central bank has cut the ceiling rate on dong deposits three times so far this year, having lowered the highest rate banks could pay depositors to 11 percent after inflation had eased. The latest move had been in effect since Monday. (Reporting by Ho Binh Minh; Editing by Paul Tait) ----------- [B][COLOR="#FF0000"]UPDATE 1-Vietnam may cut dong deposit ceiling to 9 pct-newspaper[/COLOR][/B] Thu May 31, 2012 10:42pm EDT * Vietnam's next rate cut could be in June * Ceiling on short-term dong loans could be 12-13 pct (Adds details) [B](Reuters) - Vietnam's central bank may cut the ceiling rate on dong deposits by another 2 percentage points to 9 percent later this year to help boost lending and spur economic growth, a state-run newspaper said on Friday, as policymakers across Asia eye fresh stimulus to combat the global downturn.[/B] Another rate cut in the pipeline would help ease corporate difficulties in accessing bank loans, after Vietnam's economic growth slowed to an annual pace of [B]4 percent in the first quarter of 2012[/B], the slowest since 2009. The downward adjustment would be the last in 2012, the central bank was quoted by the ruling Communist Party-run Nhan Dan (People) daily as telling bankers at a meeting on Thursday. The central bank could also impose a ceiling of 12-13 percent on dong loans with terms shorter than 12 months, while commercial banks could negotiate with borrowers on rates for longer terms, the report said. Central bankers were not immediately available for comments, while the official Tuoi Tre (Youth) newspaper said the next rate cut would be as early as this month. The central bank has cut the ceiling rate on dong deposits three times so far this year, having lowered the highest rate banks could pay depositors to 11 percent after inflation had eased. The latest move had been in effect since Monday. Vietnamese banks with surplus funds should step up lending to the agricultural and export sectors and part of the real estate market, Prime Minister Nguyen Tan Dung said early this week. Loans by the country's banking system in May dropped 0.2 percent from the end of 2011, the central bank said at the Thursday meeting. Vietnam's economic growth is forecast to slow to 5.7 percent this year from 5.8 percent in 2011, the World Bank said, while Hanoi aims to boost growth to around 6 percent in 2012. (Reporting by Ho Binh Minh; Editing by Kim Coghill)

[b]PRESS DIGEST - Vietnam newspapers - June 1[/b] HANOI, June 1 | Thu May 31, 2012 10:26pm EDT [B] (Reuters) - These are some of the leading stories in the official Vietnamese press on Friday. Reuters has not verified these stories and does not vouch for their accuracy.[/B] FINANCIAL NEWS: NHAN DAN - [B]Loans by the banking system[/B] at the end of May are estimated to [B]fall 0.2 percent[/B] from Dec. 31, 2011, the State Bank of Vietnam said. TUOI TRE - The World Bank said it would extend $4.2 billion in soft loans to Vietnam during the 2012-2016 period, the biggest package for the country ever by the bank. - Debt by state-owned enterprises (SOE) stood at [B]415 trillion dong ($19.9 billion)[/B] as of Sept 2011, or 16.9 percent of the country's total outstanding loans, the Finance Ministry said in a SOE restructuring project. ECONOMIC AND GENERAL NEWS: VIETNAM NEWS - The World Bank launched on Thursday the Country Partnership Strategy with Vietnam for the 2012-2016 period, putting less focus on financial flows and more on how the bank can assist the country to capitalise on new ideas and manage its own resources better. - Vietnam's coffee consumption in the 2012/2013 crop year would rise to 1.83 million 60-kg bags, from 1.7 million bags in the current season, the U.S. Department of Agriculture forecast. THOI BAO KINH TE VIETNAM - Vietnam's economy would accelerate from late in the second quarter or early third quarter of this year, with the annual growth in the second quarter expected to reach 4.5 percent, said Chairman Vu Viet Ngoan of the National Financial Supervisory Committee. (Reporting by Hanoi Newsroom; Editing by Anand Basu)

2 bạn đang ol cùng nhau ak 8-} Sao b black cái gì cũng hơn blacks mà chỉ là "chập chững vào nghề", còn blacks lại là "bắt đầu biết công biết việc" nhỉ?;)):-??

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Edited June 2, 201212 yr by an_tran_2810

[quote name='phuong1290']2 bạn đang ol cùng nhau ak 8-} Sao b black cái gì cũng hơn blacks mà chỉ là "chập chững vào nghề", còn blacks lại là "bắt đầu biết công biết việc" nhỉ?;)):-??[/QUOTE] đăng ký cùng dịp, nằm vùng một thời gian rồi mới dùng 1 nick

[b]Cam Ranh Bay[/b] [B][SIZE=3]Panetta Is First Top U.S. Official Since War in Cam Ranh Bay[/SIZE][/B] By Gopal Ratnam - Jun 3, 2012 1:22 PM GMT+0700 U.S. Defense Secretary Leon Panetta today met U.S. personnel at Cam Ranh Bay, becoming the top most American official to visit the former U.S. military base since the end of the Vietnam War. [B]“This is a historic trip,[/B]” Panetta told sailors aboard the USNS Richard E. Byrd, a U.S. merchant marine supply ship. “The fact that the ship is here and being serviced by Vietnamese contractors is a tremendous indication of how far we have come” Cam Ranh Bay, [B]a deep-water port[/B] located about 220 miles (354 kilometers) north of Ho Chi Minh city, hosted the U.S. naval and air base that was the main point of entry for equipment and supplies during the Vietnam War. Panetta’s visit signals closer military ties between one- time foes who resumed diplomatic relations 17 years ago. The warming relationship with Vietnam, which shares a land border to the north with China, has received a boost since President Barack Obama announced a strategy to rebalance U.S. military forces toward the Asia-Pacific region. “This is the place where lots of [B]ships, troops and supplies[/B]” came through during the war and a “tremendous amount of blood was spilled on all sides,” Panetta said. “Access to U.S. naval ships to this facility is a key component” of the U.S. strategy for the Asia-Pacific region and “we see a tremendous opportunity” to take the relationship with Vietnam [B]“to the next level[/B],” Panetta said. [B]Vietnamese Ports[/B] U.S. vessels including non-military medical and supply ships began calling at Vietnamese ports after relations were normalized in 1995. In November 2003, the missile frigate USS Vandegrift arrived in Ho Chi Minh City, the first U.S. Navy ship to dock in Vietnam since the end of the war. [B]Panetta travels to Hanoi tonight[/B] and will meet with his counterpart, Defense Minister Phung Quang Thanh, to discuss implementing a defense memorandum of understanding the two countries signed last year, according to U.S. defense officials who spoke on the condition of anonymity to discuss diplomatic talks. The agreement made in September calls for regular top-level meetings as well as cooperation on mari-time security, search and rescue, peacekeeping activities and humanitarian aid and disaster relief. Panetta is on a three-country trip to Asia including Singapore, Vietnam and India to bolster military ties in a region that Obama has said is critical to U.S. interests. The U.S. will increase its naval power in the Pacific, Panetta said yesterday at the Shangri-La Dialogue security talks held in Singapore. To contact the reporter on this story: Gopal Ratnam in Washington at [email]gratnam1@bloomberg.net[/email] To contact the editor responsible for this story: Paul Tighe at [email]ptighe@bloomberg.net[/email] ----------------------- [B][SIZE=3]Cam Ranh Bay Lures Panetta Seeking U.S. Return to Vietnam Port[/SIZE][/B] By Gopal Ratnam - Jun 4, 2012 8:27 AM GMT+0700 [B]Thirty-seven years after the Vietnam War ended in a communist victory, the top U.S. defense official returned to the old hub of American military activity seeking greater naval access to the port that greeted most of the more than 2.5 million Americans who served in Vietnam.[/B] [B]Defense Secretary Leon Panetta[/B] became the highest-ranking American official to visit Cam Ranh Bay since the Vietnam War, after arriving yesterday at the former American and South Vietnamese air base there in his U.S. Air Force 747 jet. Enlarge image Cam Ranh Bay Lures Panetta Seeking U.S. Return to Vietnam Port [ATTACH]1031.vB[/ATTACH] Leon Panetta, U.S. defense secretary, right, is saluted as he arrives at Cam Ranh Bay International Airport in Cam Ranh Bay, Vietnam. Photographer: Jim Watson/AFP/Getty Images Enlarge image Cam Ranh Bay Lures Panetta Seeking U.S. Return to Vietnam [ATTACH]1032.vB[/ATTACH] Troopers of the First Brigade of the U.S. 101st Air Borne Division look to shore at the pier in Cam Ranh Bay, South Vietnam following their arrival on July 29, 1965. Source: AP Enlarge image President Lyndon B. Johnson Greets Troops in Cam Ranh Bay [ATTACH]1033.vB[/ATTACH] President Lyndon B. Johnson greets troops in Cam Ranh Bay. Photographer: George Silk/Time Life Pictures/Getty Images Enlarge image Cam Ranh Bay Lures Panetta Seeking U.S. Return to Vietnam Port The visit, a week after Americans commemorated their 58,282 countrymen and women who died in the war, reflected the U.S.’s expanding relationship with a former enemy and efforts by the Obama administration to counter the rise of China as a competitor for influence in Asia. “This is a historic trip,” Panetta told the sailors on the USNS Richard E. Byrd, a U.S. merchant-marine supply ship undergoing repairs at the Cam Ranh Bay port. “The fact that the ship is here and being serviced by Vietnamese contractors is a tremendous indication of how far we have come.” While the fear of a communist takeover of South Vietnam propelled the U.S. into war five decades ago, the emergence of China prompted the Obama administration to rewrite military strategy with the goal of increasing the American presence in the Asia-Pacific region and working with countries that express anxiety about the prospect of Chinese dominance. Stationing more U.S. forces in the region requires working with partners such as Vietnam and being “able to use harbors like this as we move our ships from our ports on the West Coast towards our stations here in the Pacific,” Panetta told reporters on the Byrd’s deck. [B]Non-Combat Ships[/B] So far, Vietnam lets only non-combat ships, such as the Byrd, dock at Cam Ranh Bay, a U.S. defense official said. Supply ships operated by the U.S. Military Sealift Command and manned by merchant marines call at the port for repairs and maintenance, said the official, who spoke on condition of anonymity to discuss the sensitive Vietnamese restrictions. Cam Ranh Bay, located about 220 miles (354 kilometers) north of Ho Chi Minh City, has been of strategic significance to the world’s powers for more than 100 years. The more elderly among the Vietnamese in conical straw hats who waved at Panetta’s motorcade yesterday had seen the Americans pass this way before, followed by the Russians. Their ancestors had watched the French and Japanese come and, eventually, go. [B]Built by France[/B] Built by the French in the 19th century and later occupied by Japan during World War II, Cam Ranh Bay was offered to the U.S. by its ally South Vietnam in 1965. The U.S. upgraded the air and naval facilities for use in the war. It was handed back to South Vietnam in 1972 as part of the so-called Vietnamization effort and captured by the communist forces in 1975. About four years later, the Soviet Union was granted access to Cam Ranh Bay. It upgraded the war-torn facilities, adding runways, dry docks, shelters for submarines, weapons-storage facilities and signals intelligence stations, according to a history of the port by Ian Storey and Carlyle Thayer, “Cam Ranh Bay: Past imperfect, Future Conditional,” published in 2001 by the journal Contemporary Southeast Asia. While the Soviet presence at Cam Ranh Bay declined at the end of the Cold War, Russia held on to the port until 2002, Storey and Thayer wrote. Since then Vietnam has opened Cam Ranh Bay to international commerce. [B]58,282 Dead[/B] The significance of visiting Cam Ranh Bay less than a week after the U.S. marked Memorial Day was invoked by Panetta. “Last Monday I stood before the Vietnam Memorial” in Washington, “to recognize the 50th anniversary of the Vietnam War,” Panetta said. “Today I stand on a U.S. ship at Cam Ranh Bay to recognize the 17th anniversary of harmonization of relationship between U.S. and Vietnam.” In addition to the deaths of 58,282 U.S. troops in the Vietnam War, 1,666 Americans are still missing. The U.S. and Vietnam have a joint effort to find and return remains. Panetta said the U.S. and Vietnam aren’t slaves to their history even though a “tremendous amount of blood was spilled on all sides” during the war. Vietnam and the U.S. resumed diplomatic relations in 1995, and since then U.S. ships have called on several Vietnamese ports. In November 2003, the missile frigate USS Vandegrift arrived in Ho Chi Minh City, the first U.S. Navy ship to dock in Vietnam since the end of the war. [B]Committed to Region[/B] “It’s significant to have a secretary of defense of the United States visit Cam Ranh Bay,” said former Senator Chuck Hagel, a Vietnam War veteran and one of the founders of the annual Shangri-La Dialogue, which Panetta addressed in Singapore on June 2. “It reinforces the belief that America is committed to that region and to our relationships with the nations in the region, including those that once were our enemy,” Hagel, a Nebraska Republican, said yesterday in a phone interview. Vietnam and China have clashed over which country has rights to the Paracels and Spratly Islands in the South China Sea. Inviting Panetta to visit Cam Ranh Bay is a signal to China that Vietnam has U.S. backing, Thayer, an emeritus professor at the University of New South Wales in Australia, said in an e- mail. [B]Message to China[/B] Panetta’s visit is “aimed at sending a strategic message to Beijing that Chinese assertiveness will be resisted,” even though the U.S. and Vietnam may deny it, Thayer said. The U.S. defense secretary’s visit to Cam Ranh Bay wasn’t publicly announced until the evening before his arrival, and Vietnam’s deputy defense minister, General Nguyen Chi Vinh, played down the significance of the stop beforehand. Vietnam “did not share” the idea that it was attempting to create a deterrent to China’s military rise, Vinh told the South China Morning Post, in an interview published June 2. “To have peace, stability and security in the region, it is very important for us to have good relations with China so that we can enjoy mutual benefit,” the newspaper quoted Vinh as saying. Panetta was less reluctant to portray U.S.-Vietnam relations as gaining momentum. He told reporters on the USNS Byrd that he had come to Vietnam to make progress on a memorandum of understanding signed by the two countries in September and “expand on that relationship.” “We look forward to working together with the country of Vietnam and take this relationship to the next level,” Panetta said. The U.S. would help Vietnam establish rules of conduct in the South China Sea and deal with “critical mari-time issues,” he said. To contact the reporter on this story: Gopal Ratnam in Hanoi at [email]gratnam1@bloomberg.net[/email] To contact the editor responsible for this story: John Walcott at [email]jwalcott9@bloomberg.net[/email]

[b]Vietnam’s Stocks: Vegetable Oil Packing, Tay Ninh Rubber[/b] By Bloomberg News - Jun 4, 2012 2:50 PM GMT+0700 Shares of the following companies had unusual moves in Vietnam trading. Stock symbols are in parentheses and prices are as of the close in Ho Chi Minh City. The VN Index (VNINDEX), the benchmark measure of the Ho Chi Minh City Stock Exchange, [B]dropped 2.8 percent to 416.65, the lowest level since Feb. 21[/B]. [B]Vegetable Oil Packing Joint-Stock Co. (VPK VN[/B]), which manufactures and trades packages and containers for the food processing industry, fell 4.7 percent to 14,100 dong, the most since May 9. Vietnam Dairy Products Joint-Stock Co. (VNM), or Vinamilk, cut its stake in the company to 4.87 percent from 17.76 percent, according to the exchange’s website. [B]Tay Ninh Rubber Joint-Stock Co. (TRC VN)[/B], slumped 4.8 percent to 39,800 dong, the lowest close since May 18. The November-delivery rubber contract lost as much as 5.9 percent to 240.3 yen a kilogram ($3,074 a metric ton), the lowest level for the most-active contract since Nov. 30, 2009. To contact Bloomberg News staff for this story: Nguyen Kieu Giang in Hanoi at [email]giang1@bloomberg.net[/email] To contact the editor responsible for this story: Darren Boey at [email]dboey@bloomberg.net[/email]

[b]PRESS DIGEST - Vietnam newspapers - June 4[/b] HANOI, June 4 | Sun Jun 3, 2012 10:16pm EDT (Reuters) - These are some of the leading stories in the official Vietnamese press on Monday. Reuters has not verified these stories and does not vouch for their accuracy. FINANCIAL NEWS: THANH NIEN - [B]Interest rates on loans for the real-estate market[/B] have been dropping quickly in recent days, easing to 13.0-15.5 percent, as banks aim to expand credit to this sector, bankers said. DAU TU - A total of $1.72 billion in [B]official development assistance funds[/B] for Vietnam had been disbursed in the first five months of this year, [B]up 43 percent from a year ago[/B], the Planning and Investment Ministry said. ECONOMIC AND GENERAL NEWS: VIETNAM NEWS - Vietnam is preparing for the official launch on July 1 of the competitive power generation market after several delays, the government said. QUAN DOI NHAN DAN - The United States wants to expand defence ties with Vietnam following a memorandum signed last year on defence co-operation, U.S. Defence Secretary Leon Panetta said at a news briefing on Sunday in Cam Ranh Bay at the start of his Vietnam visit. SAIGON GIAI PHONG - The Dung Quat Industrial Ship Co handed over a 104,000-tonnage tanker, the country's largest domestically built, to Petrovietnam Transportation Corp on Sunday, marking a landmark in Vietnam's shipbuilding sector. TUOI TRE - The number of unemployed people in Ho Chi Minh City last year accounted for 30 percent of Vietnam's total, while the number of those seeking unemployment benefits in the city this year would rise 15-20 percent from 2011, the Labour Ministry said. THOI BAO KINH TE VIETNAM - Vietnam's cement consumption in the first five months of 2012 dropped 8 percent from a year ago to 19.56 million tonnes, but sales were recovering with many construction projects having started in May, industry reports show. (Reporting by Hanoi Newsroom; Editing by Sunil Nair)

[b]HNX to tender 5tr dong G-bonds June 7[/b] 04-Jun-2012 Intellasia | Thoi Bao Kinh Te Vietnam page 9 | 8:21 AM [B]Hanoi Stock Exchange (HNX) announced to hold the tender session on June 7, 2012 for bidding government-guaranteed bonds issued by Vietnam Development Bank. The bond value was posted at 5 trillion dong.[/B] In details, the bonds would have two terms of three years (worth 2 trillion dong) and five years (3 trillion dong), to be issued on June 11, 2012 under book entry method. The bonds would be offered at price equalling, or lower, or higher than the par value. The yield was supposed to be paid periodically every year, at the same date with the issuance date, while the principal to be paid once at due date. The applied bidding method would be the combination between competitive and non-competitive bidding ones.

[b]IMF Says Vietnam Should Focus on Inflation Over Rate Reductions[/b] By Bloomberg News - Jun 4, 2012 6:01 PM GMT+0700 [B][URL="http://topics.bloomberg.com/vietnam/"]Vietnam[/URL]’s central bank should prioritize containing inflation and be cautious about lowering [URL="http://topics.bloomberg.com/interest-rates/"]interest rates[/URL] further after reductions in the past three months, the [URL="http://www.imf.org"]International Monetary Fund[/URL] said. [/B] The government should focus on economic stability even if it means accepting “somewhat slower growth,” Sanjay Kalra, the IMF’s resident representative for the country, said in a statement today. Vietnam has [B]a history of loosening monetary policy prematurely[/B], and the rate cuts may cause price pressures to re-emerge in as little as three months, the [URL="http://topics.bloomberg.com/world-bank/"]World Bank[/URL] said separately today. Vietnam cut interest rates last week for the third straight month as policy makers stepped up efforts to bolster a struggling economy after inflation eased to the lowest since 2010. The [URL="http://www.bloomberg.com/quote/VEGDYOY:IND"]economy[/URL] expanded 4 percent in the first quarter, the slowest since 2009, and growth in the current three-month period may be as low as 4.4 percent, Deputy Minister of Planning & Investment Cao Viet Sinh said today. [B]“Risks to the outlook for 2012 include a loss of market confidence in the government’s policy orientation[/B],” Kalra said at a conference in the central Vietnamese town of Dong Ha. “Government policies need to credibly prioritize stability.” The central bank cut its [URL="http://www.bloomberg.com/quote/VNREFINC:IND"]refinancing rate[/URL] to 12 percent from 15 percent between March and May and reduced its repurchase rate to 11 percent from 14 percent over the same period. Inflation slowed to 8.34 percent in May after reaching 23 percent last year, the fastest in [URL="http://topics.bloomberg.com/asia/"]Asia[/URL]. Inflation may ease to as low as 5 percent next quarter and range between 6 percent and 8 percent by the end of the year, according to a JPMorgan Chase & Co. report today. The central bank’s policy rates may be cut by as much as 300 basis points by the end of the third quarter, JPMorgan economists estimate. While the three rate cuts came “earlier than expected for most market participants,” inflation has also slowed more rapidly than had been anticipated, the IMF said. The [URL="http://topics.bloomberg.com/state-bank/"]State Bank[/URL] of Vietnam will “steer interest rates on a declining path,” and may eliminate a rate cap on dong deposits, central bank Deputy Governor Le Minh Hung said in a statement distributed at the conference today. [B]Inflation is “expected to be under control,” he said.[/B] --Jason Folkmanis and Nguyen Dieu Tu Uyen in Dong Ha, Vietnam. Editors: Shamim Adam, Rina Chandran To contact Bloomberg News staff for this story: Jason Folkmanis in Dong Ha, Vietnam at [EMAIL="folkmanis@bloomberg.net"]folkmanis@bloomberg.net[/EMAIL]; Nguyen Dieu Tu Uyen in Dong Ha, Vietnam at [EMAIL="uyen1@bloomberg.net"]uyen1@bloomberg.net[/EMAIL] To contact the editor responsible for this story: Stephanie Phang at [EMAIL="sphang@bloomberg.net"]sphang@bloomberg.net[/EMAIL]

[b]Vietnam’s PV Oil Said to Sell Bach Ho Oil to Petrobras, Arcadia[/b] By Ramsey Al-Rikabi - Jun 4, 2012 3:43 PM GMT+0700 PV Oil Corp., Vietnam’s state-run oil-marketing company, sold as much as 900,000 barrels of Bach Ho crude loading to Arcadia Petroleum Ltd. and Petroleo Brasileiro SA, or Petrobras (PETR4), said two people with knowledge of the deal, declining to be identified because the information is confidential. Additional cargoes were sold to unknown buyers, they said. Petrobras paid a premium of about $3.80 to $4 a barrel more than benchmark Minas crude, one of the traders said. [CODE]Details of the deal are as follows: ------------------------------------------------------------ Crude: Bach Ho (Vietnam) Buyers: Petrobras, 300,000 barrels for June Arcadia, 600,000 barrels for July Seller: PV Oil ------------------------------------------------------------[/CODE] To contact the reporter on this story: Ramsey Al-Rikabi in Singapore at [email]ralrikabi@bloomberg.net[/email] To contact the editor responsible for this story: Alexander Kwiatkowski at [email]akwiatkowsk2@bloomberg.net[/email] ------------------ [B][SIZE=3]Vietnam Sells More Bach Ho; Dubai Oil Strengthens: Asia Crude[/SIZE][/B] By Ramsey Al-Rikabi - Jun 4, 2012 5:19 PM GMT+0700 [B]Vietnam’s PV Oil sold as much as 900,000 barrels of its Bach Ho crude for June and July loading in the second round of deals following the closing of the country’s only refinery.[/B] The company sold 300,000 barrels to Petroleo Brasileiro SA, known as Petrobras (PETR4), and 600,000 barrels to Arcadia Petroleum Ltd., according to two traders who participate in the market. They declined to be identified because the information is confidential. Brazil’s Petrobras paid a premium of about $3.80 to $4 a barrel more than benchmark Minas crude for a cargo loading around June 20, one of the traders said. That compares with 800,000 barrels of Bach Ho crude for July, which sold at a premium of about $6 a barrel to benchmark Minas oil. [B]PV Oil’s parent company, Vietnam Oil & Gas Group[/B], shut the 131,000-barrel-a day Dung Quat oil refinery on May 15 until about June 15. [B]Most of the oil processed at facility is Bach Ho[/B]. Russia’s TNK-BP offered to sell 100,000 metric tons of East Siberia-Pacific Ocean crude, or ESPO, for loading July 13 to July 18, said two traders who participate in the market, declining to be identified because the information is confidential. The offer closes today. PT Pertamina, Indonesia’s state-owned oil company, offered to sell 145,000 barrels of Geragai condensate for loading in July, according to a tender document obtained by Bloomberg News. Bids close June 7. [B]Dubai Timespreads[/B] Dubai crude’s backwardation, when prices for prompt supplies are greater than future delivery, rose 1 cent. Swaps for July were $1.33 cents a barrel more than September, according to data from PVM Oil Associates Ltd., a London-based broker. The difference between oil delivered in one month compared with three months, known as the timespread, has widened 21 percent during the last month from $1.10 on May 4, a sign that demand from refiners is increasing. The July Brent-Dubai exchange for swaps, which measures the European marker grade’s premium against the Middle Eastern oil, dropped 7 cents to $2.90 a barrel, according to data from PVM. The August EFS was down 14 cents to $2.89. Oman for July delivery slid $3.53 to $95.18 a barrel at 12:30 p.m. on the Dubai Mercantile Exchange. Eight Dubai partial cargoes were sold today, according to a survey of traders who monitor the Platts pricing window. Royal Dutch Shell Plc was the only buyer, paying $95.15 a barrel for four 25,000-barrel lots from Phibro LLC, two from Glencore International Plc and one from Mercuria Energy Trading SA. Shell bought the eighth from Mercuria at $95.10. To contact the reporter on this story: Ramsey Al-Rikabi in Singapore at [email]ralrikabi@bloomberg.net[/email] To contact the editor responsible for this story: Alexander Kwiatkowski at [email]akwiatkowsk2@bloomberg.net[/email]

[b]PRESS DIGEST - Vietnam newspapers - June 5[/b] HANOI, June 5 | Mon Jun 4, 2012 10:07pm EDT (Reuters) - These are some of the leading stories in the official Vietnamese press on Tuesday. Reuters has not verified these stories and does not vouch for their accuracy. FINANCIAL NEWS: SAIGON GIAI PHONG - [B]State-run Agribank[/B], Vietnam's largest lender by assets, said it will extend a 10 trillion dong ($478.8 million) lending package to support the export sector, with an annualised interest rate of [B]12 percen[/B]t for a six-month loan, the lowest rate in the domestic market now. ECONOMIC AND GENERAL NEWS: VIETNAM NEWS - Vietnam's consumer price index in June is forecast to edge up between 0.1 percent and 0.2 percent from May, the Industry and Trade Ministry's market management board said. QUAN DOI NHAN DAN - Vietnamese and Danish officials are investigating after Demark reported irregulari-ties in the use of official development assistance funds from Denmark in several Vietnam projects, Foreign Minister Pham Binh Minh said. HANOI MOI - Vietnam's economy is expected to grow 4.5-4.6 percent in the second quarter from a year ago, making it hard to achieve an annual target of 6.0-6.5 percent, the Planning and Investment Ministry said. LAO DONG - Nearly [B]172,000 people[/B] had registered for unemployment insurance in the first four months of 2012, up 70 percent from the same period last year, the Labour Ministry said. ($1 = 20885.0000 Vietnam dong) (Reporting by Hanoi Newsroom; Editing by Gopakumar Warrier)

[b]PRESS DIGEST - Vietnam newspapers - June 6[/b] HANOI, June 6 | Tue Jun 5, 2012 9:57pm EDT (Reuters) - These are some of the leading stories in the official Vietnamese press on Wednesday. Reuters has not verified these stories and does not vouch for their accuracy. FINANCIAL NEWS: VIETNAM NEWS - The Vietnamese dong fell to below 21,000 per dollar on Tuesday as banks were [B]buying the foreign currency to balance previous oversales[/B] while some companies also sought to buy the U.S. currency for [B]debt repayments[/B], bankers said. ECONOMIC AND GENERAL NEWS: VIETNAM NEWS - Vietnam is currently listed among the countries facing [B]water shortages[/B], with the average amount of water use at 3,850 cubic metres per person per year, below the sufficient level of 4,000 cubic metres, the Food and Agriculture Organisation said. TUOI TRE - While the debt ratio in Vietnam is currently under control, the risk is high for debt obligation in state-owned enterprises and the financial sector, the World Bank said in a report to the mid-term Consultative Group meeting on Tuesday. THANH NIEN - Ho Chi Minh City would need 46 trillion dong ($2.2 billion) to build [B]four elevated roads[/B] to help ease traffic, with funds for site clearance totalling 15 trillion dong, the city's Transport Service said in a report to the municipal government. (Reporting by Hanoi Newsroom; Editing by Gopakumar Warrier)

[b]Vietnam 5-Year Bonds Gain as Interbank Rates Slide; Dong Weakens[/b] By Bloomberg News - Jun 6, 2012 2:19 PM GMT+0700 [B]Vietnam’s benchmark five-year bonds rose for a fifth day on speculation falling money-market rates are boosting demand for government debt. The dong weakened.[/B] [B]The overnight interbank deposit rate[/B] declined 15 basis points to [B]1.22 percent[/B], the lowest level since June 2009 when Bloomberg started compiling the data. The measure, which was at 11.81 percent at the end of 2011, has fallen more than 300 basis points in the last month. “Liquidity in the money market is good, supporting the trend lower,” said Tran Kieu Hung, a Hanoi-based fixed-income trader at Bank for Investment & Development of Vietnam. Five-year bond yields fell two basis points, or 0.02 percentage point, to [B]9.53 percen[/B]t, according to a daily fixing rate from banks compiled by Bloomberg. That’s the lowest since May 21. The dong dropped 0.3 percent to [B]21,005 per dollar as of 2:11 p.m[/B]. in Hanoi, according to data compiled by Bloomberg. The State Bank of Vietnam set its reference rate at 20,828, unchanged since Dec. 26, according to its website. The currency is allowed to trade up to 1 percent on either side of the rate. To contact the reporter on this story: Nick Heath in Hanoi at [email]nheath2@bloomberg.net[/email] To contact the editor responsible for this story: Sandy Hendry at [email]shendry@bloomberg.net[/email]

[b]Vietnamese stocks rise, eyes on macro data, earnings[/b] (Updates with market close, foreigner trading, comments) HANOI, June 6 (Reuters) - Vietnamese stocks closed up on Wednesday on [B]speculations of a cut in fuel prices[/B] [B]and interest rates[/B], while investors were waiting for details on the country's economic growth and corporate earnings, a broker and an analysts said. Foreigners sold 80.85 billion dong ($3.85 million) worth of stocks and bought shares valued at 33.27 billion dong on the Ho Chi Minh Stock Exchange, the exchange said. VN INDEX [B]Up 1.28 percent at 426.39 points.[/B] Volume of shares traded: 91.50 million. Value of shares traded: 1.75 trillion dong. Largest gainers , largest losers HNX INDEX Up 0.27 percent at 73.78 points. Volume of shares traded: 36.07 million. Value of shares traded: 349.64 billion dong. Largest gainers , largest losers Analyst comments Chau Thien Truc Quynh, head of retail brokerage, Viet Capital Securities: "The stock market gained due to speculations of a fuel price cut and interest rate slashing plus a rise on global markets. "[B]Trading volume rose steeply[/B], mainly due to put-through transaction value of Sacombank . This was a positive signal that helped improve the sentiment. "The gain is unsustainable and the market may continue moving [B]sideways[/B] to consolidate from now until the end of this month, waiting for [B]quarterly earnings and positive macro news[/B]." Doan Thi Anh Nguyet, analyst, Saigon-Hanoi Securities: "The market rose as investors bought on dips around the Fi-bonacci 50 percent level after a sharp fall from the peaks set in May at 490 points on HOSE ([B]the main market[/B]) and 88-90 points in the Hanoi exchange. "The bottom-fishing also came from the government's bold moves and a credit growth rate picking up. "Supply of cheap goods has dried up. Investors are expecting [B]clear signals[/B] from macro-economy and aggregate demand." ($1=20,980 dong) (Reporting by Vu Duy; Editing by Ho Binh Minh and Anand Basu) ((Hanoi newsroom)(+844 3825-9623)(email: [email]duy.vu@thomsonreuters.com[/email])) Keywords: MARKETS VIETNAM STOCKS/ ([I]C) Reuters 2012. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters.[/I]

[b]TEXT-S&P ratings[/b] [B][COLOR="#FF0000"]TEXT-S&P:Vinacomin rtg unaffected by sovereign rtg action[/COLOR][/B] Wed Jun 6, 2012 6:10am EDT (The following statement was released by the rating agency) June 06 - Standard & Poor's Ratings Services said today that its rating and outlook on Vietnam National Coal and Mineral Industries Holding Corp. Ltd. (Vinacomin; BB-/Negative/--) are not affected by the sovereign rating action on Vietnam (BB-/Stable/B; axBB+/axB). Standard & Poor's recently revised the sovereign rating outlook to stable from negative. We are not revising the outlook on Vinacomin because the rating and outlook on the company primarily reflect its stand-alone credit profile of 'bb-'. We believe there is a "low" likelihood of extraordinary government support in the event of financial distress, as defined in our criteria for rating government-related entities. Our view is based on the "limited" importance Vinacomin's creditworthiness represents to the government. We continue to believe there is a one in three chance the rating on Vinacomin [B]could be lowered in the next 12 months if the company's operating cash flows weaken because of increasing domestic sales at government-regulated prices.[/B] Vinacomin will have to rely more on debt to fund its significant capital expenditure program if cash flows weaken. This could lead the company's credit protection measures or liquidity to deteriorate. A debt-to-EBITDA ratio of more than 4x on a sustained basis would indicate such deterioration. RELATED CRITERIA AND RESEARCH -- Vietnam Outlook Revised To Stable From Negative; 'BB-/B' Sovereign Ratings Affirmed, June 6, 2012 --------------------- [B][COLOR="#FFD700"]TEXT-S&P ratings - Vietnam (Socialist Republic of)[/COLOR][/B] (The following statement was released by the rating agency) June 06 - ============================================================================== Ratings -- Vietnam (Socialist Republic of) ------------------------ 06-Jun-2012 =============================================================================== CREDIT RATING: BB-/Stable/B Country: Vietnam Primary SIC: Sovereign Mult. CUSIP6: 92670L Mult. CUSIP6: Y9374Q =============================================================================== Credit Rating History: Local currency Foreign currency 19-Aug-2011 BB-/B BB-/B 23-Dec-2010 BB/B BB-/B =============================================================================== Issues: Rating Rating Date US$228.243 mil step up Brady's Bond bnds due 03/12/2028 BB- 23-Dec-2010 US$290.1 mil step up brady bnds due 03/14/2016 BB- 23-Dec-2010 US$24.552 mil fltg rate brady bnds due 03/13/2028 BB- 23-Dec-2010 US$750 mil 6.875% bnds due 01/15/2016 BB- 23-Dec-2010 VND500 bil 7.15% bnds due 06/13/2012 BB- 19-Aug-2011 VND100 bil 9.15% bnds due 06/20/2012 BB- 19-Aug-2011 VND500 bil 7.25% bnds due 06/27/2012 BB- 19-Aug-2011 VND500 bil 7.35% bnds due 07/04/2012 BB- 19-Aug-2011 VND600 bil 7.40% bnds due 07/11/2012 BB- 19-Aug-2011 VND400 bil 7.38% bnds due 07/16/2012 BB- 19-Aug-2011 VND1.57 tri 7.42% bnds due 07/24/2012 BB- 19-Aug-2011 VND400 bil 7.40% bnds due 07/30/2012 BB- 19-Aug-2011 VND200 bil 7.45% bnds due 08/14/2012 BB- 19-Aug-2011 VND100 bil 7.80% bnds due 09/07/2012 BB- 19-Aug-2011 VND100 bil 8.80% bnds due 10/01/2012 BB- 19-Aug-2011 VND500 bil 7.90% bnds due 10/16/2012 BB- 19-Aug-2011 VND935 bil 7.85% bnds due 10/19/2012 BB- 19-Aug-2011 VND700 bil 7.86% bnds due 10/23/2012 BB- 19-Aug-2011 VND800 bil 7.87% bnds due 10/31/2012 BB- 19-Aug-2011 VND400 bil 8.00% bnds due 11/07/2012 BB- 19-Aug-2011 VND1.2 tri 8.30% bnds due 11/14/2012 BB- 19-Aug-2011 VND100 bil 8.30% bnds due 11/20/2012 BB- 19-Aug-2011 VND100 bil 8.50% bnds due 11/28/2012 BB- 19-Aug-2011 VND50 bil 8.55% bnds due 10/04/2013 BB- 19-Aug-2011 VND200 bil 8.55% bnds due 11/01/2013 BB- 19-Aug-2011 VND200 bil 8.36% bnds due 12/13/2013 BB- 19-Aug-2011 VND700 bil 7.04% bnds due 03/21/2014 BB- 19-Aug-2011 VND500 bil 7.20% bnds due 04/04/2014 BB- 19-Aug-2011 ND700 bil 7.30% bnds due 04/18/2014 BB- 19-Aug-2011 VND100 bil 8.80% bnds due 03/18/2015 BB- 19-Aug-2011 VND50 bil 8.80% bnds due 04/13/2015 BB- 19-Aug-2011 VND160 bil 8.95% bnds due 03/28/2016 BB- 19-Aug-2011 VND105 bil 9.10% bnds due 05/17/2020 BB- 19-Aug-2011 VND100 bil 9.20% bnds due 06/15/2020 BB- 19-Aug-2011 VND90 bil 9.20% bnds due 06/30/2020 BB- 19-Aug-2011 VND50 bil 9.25% bnds due 08/25/2020 BB- 19-Aug-2011 VND50 bil 9.25% bnds due 09/08/2020 BB- 19-Aug-2011 VND200 bil 9.25% bnds due 12/21/2020 BB- 19-Aug-2011 VND130 bil 9.25% bnds due 03/09/2021 BB- 19-Aug-2011 VND300 bil 9.25% bnds due 04/05/2021 BB- 19-Aug-2011 VND100 bil 9.25% bnds due 04/06/2021 BB- 19-Aug-2011 VND80 bil 9.25% bnds due 04/18/2021 BB- 19-Aug-2011 VND50 bil 9.25% bnds due 07/17/2021 BB- 19-Aug-2011 VND500 bil 9.25% bnds due 07/31/2021 BB- 19-Aug-2011 VND30 bil 8.90% bnds due 09/12/2021 BB- 19-Aug-2011 VND100 bil 8.50% bnds due 10/06/2021 BB- 19-Aug-2011 VND250 bil 9.00% bnds due 10/13/2021 BB- 19-Aug-2011 VND25 bil 9.00% bnds due 10/17/2021 BB- 19-Aug-2011 VND100 bil 9.00% bnds due 10/18/2021 BB- 19-Aug-2011 VND100 bil 9.00% bnds due 11/15/2021 BB- 19-Aug-2011 VND100 bil 9.00% bnds due 11/28/2021 BB- 19-Aug-2011 VND150 bil 9.00% bnds due 11/30/2021 BB- 19-Aug-2011 VND150 bil 9.00% bnds due 12/12/2021 BB- 19-Aug-2011 VND200 bil 9.00% bnds due 01/17/2022 BB- 19-Aug-2011 VND430 bil 8.70% bnds due 12/05/2012 BB- 19-Aug-2011 VND700 bil 8.70% bnds due 12/12/2012 BB- 19-Aug-2011 VND700 bil 8.68% bnds due 12/18/2012 BB- 19-Aug-2011 VND2.6 tri 8.65% bnds due 12/19/2012 BB- 19-Aug-2011 VND700 bil 8.65% bnds due 12/26/2012 BB- 19-Aug-2011 VND1.5 tri 8.68% bnds due 12/26/2012 BB- 19-Aug-2011 VND250 bil 8.50% bnds due 01/15/2013 BB- 19-Aug-2011 VND1.05 tri 8.50% bnds due 01/17/2013 BB- 19-Aug-2011 VND400 bil 8.50% bnds due 01/29/2013 BB- 19-Aug-2011 VND250 bil 8.50% bnds due 01/31/2013 BB- 19-Aug-2011 VND80 bil 8.50% bnds due 02/21/2013 BB- 19-Aug-2011 VND55 bil 16.00% bnds due 08/12/2013 BB- 19-Aug-2011 VND300 bil 14.20% bnds due 10/29/2013 BB- 19-Aug-2011 [B]US$1 bil 6.75% 10-year benchmark size global[/B] bnds due 01/29/2020 BB- 23-Dec-2010 VND20 mil 11.50% bnds due 04/27/2015 BB- 19-Aug-2011 VND170 mil 12.10% bnds due 03/22/2013 BB- 19-Aug-2011 VND600 mil 11.25% bnds due 05/17/2013 BB- 19-Aug-2011 VND100 mil 9.00% bnds due 06/18/2012 BB- 19-Aug-2011 VND550 mil 9.80% bnds due 07/06/2013 BB- 19-Aug-2011 VND1 mil 9.80% bnds due 07/08/2013 BB- 19-Aug-2011 VND10 mil 10.80% bnds due 12/15/2012 BB- 19-Aug-2011 VND100 mil 9.20% bnds due 07/23/2012 BB- 19-Aug-2011 VND1 mil 10.60% bnds due 06/21/2013 BB- 19-Aug-2011 VND2 mil 11.02% bnds due 05/27/2013 BB- 19-Aug-2011 VND500 mil 12.00% bnds due 03/10/2013 BB- 19-Aug-2011 VND250 mil 11.40% bnds due 04/26/2013 BB- 19-Aug-2011 VND1 mil 11.15% bnds due 06/10/2015 BB- 19-Aug-2011 VND300 mil 10.40% bnds due 09/09/2015 BB- 19-Aug-2011 VND900 mil 10.95% bnds due 06/07/2013 BB- 19-Aug-2011 VND950 mil 10.40% bnds due 07/06/2015 BB- 19-Aug-2011 VND500 mil 11.50% bnds due 04/19/2015 BB- 19-Aug-2011 VND2 mil 10.90% bnds due 06/10/2013 BB- 19-Aug-2011 VND500 mil 11.40% bnds due 04/19/2013 BB- 19-Aug-2011 VND1 mil 10.55% bnds due 06/24/2015 BB- 19-Aug-2011 VND1 mil 9.78% bnds due 09/30/2013 BB- 19-Aug-2011 VND1 mil 11.33% bnds due 05/13/2015 BB- 19-Aug-2011 VND300 mil 9.80% bnds due 08/02/2013 BB- 19-Aug-2011 VND750 mil 10.80% bnds due 10/11/2020 BB- 19-Aug-2011 VND1 mil 11.05% bnds due 06/15/2015 BB- 19-Aug-2011 VND850 mil 10.80% bnds due 10/18/2020 BB- 19-Aug-2011 VND1 mil 11.20% bnds due 06/08/2015 BB- 19-Aug-2011 VND3 mil 10.29% bnds due 10/18/2015 BB- 19-Aug-2011 VND1 mil 9.68% bnds due 10/11/2013 BB- 19-Aug-2011 VND2 mil 11.00% bnds due 01/25/2015 BB- 19-Aug-2011 VND2 mil 9.65% bnds due 10/18/2013 BB- 19-Aug-2011 VND200 mil 11.33% bnds due 06/01/2015 BB- 19-Aug-2011 VND1 mil 11.20% bnds due 05/27/2015 BB- 19-Aug-2011 VND100 mil 9.00% bnds due 07/08/2012 BB- 19-Aug-2011 VND900 mil 11.50% bnds due 04/26/2015 BB- 19-Aug-2011 VND2 mil 11.25% bnds due 05/13/2013 BB- 19-Aug-2011 VND1 mil 10.30% bnds due 07/08/2015 BB- 19-Aug-2011 VND2 mil 10.08% bnds due 06/24/2013 BB- 19-Aug-2011 VND500 mil 11.30% bnds due 06/07/2020 BB- 19-Aug-2011 VND3 mil 10.95% bnds due 06/21/2015 BB- 19-Aug-2011 VND10 mil 10.80% bnds due 12/18/2014 BB- 19-Aug-2011 NONE CP prog auth amt VND44.9 bil B 03-Jun-2002 ------------------------[B][COLOR="#008000"] TEXT-S&P ratings - Vietnam Joint Stock Commercial Bank for Industry and Trade[/COLOR][/B] (The following statement was released by the rating agency) June 06 - =============================================================================== Ratings -- Vietnam Joint Stock Commercial Bank for Industry and Tra 06-Jun-2012 =============================================================================== CREDIT RATING: B+/Stable/B Country: Vietnam =============================================================================== Credit Rating History: Local currency Foreign currency 15-Mar-2012 B+/B B+/B =============================================================================== Issues: Rating Rating Date US$250 mil 8.00% nts due 05/17/2017 B+ 15-Mar-2012 -------------------------------- [B][COLOR="#00FFFF"]TEXT-S&P ratings - Bank for Investment and Development of Vietnam[/COLOR][/B] Wed Jun 6, 2012 5:31am EDT (The following statement was released by the rating agency) June 06 - =============================================================================== Ratings -- Bank for Investment and Development of Vietnam --------- 06-Jun-2012 =============================================================================== CREDIT RATING: B+/Stable/B Country: Vietnam Primary SIC: Commercial Banks =============================================================================== Credit Rating History: Local currency Foreign currency 08-Dec-2011 B+/B B+/B 23-Dec-2010 BB-/B BB-/B 22-Jul-2010 BB/B BB/B ============================================================================== ------------------- [B][COLOR="#0000FF"]TEXT-S&P revises otlk on two Vietnam banks after sovereign action[/COLOR][/B] Wed Jun 6, 2012 5:34am EDT (The following statement was released by the rating agency) June 06 - Standard & Poor's Ratings Services today revised the outlooks on Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) and Bank for Investment and Development of Vietnam (BIDV) [B]to stable from negative[/B]. At the same time, Standard & Poor's affirmed its [B]'B+/B' issuer credit ratings on both the banks[/B]. We also revised the ASEAN scale ratings on BIDV to 'axBB/axB' from 'axBB-/axB'. We revised the outlook on the two banks following a similar sovereign rating action on Vietnam (BB-/Stable/B; axBB+/axB) earlier today. The ratings on Vietinbank and BIDV are one notch above the banks' respective stand-alone credit profiles, reflecting: (1) the banks' "high systemic importance" in Vietnam's banking system; and (2) our assessment of a "highly supportive" government, which qualifies for a one-notch rating uplift from the banks' stand-alone credit profile of 'b'. RELATED CRITERIA AND RESEARCH -- Vietnam Outlook Revised To Stable From Negative; 'BB-/B' Sovereign Ratings Affirmed, June 6, 2012 -- Vietnam Banking Outlook: Banking Sector Reforms Could Herald Greater System Stability In 2012, March 12, 2012 -- Banks: Rating Methodology And Assumptions, Nov. 9, 2011

[b]Business Briefs June 6[/b] 06-Jun-2012 Intellasia | | 1:46 PM * Da Nang Securities Joint Stock Co (DNSC) has decided to hike its chartered capital from 50 billion dong to 60 billion dong, following the licence No 87/GPDC-UBCK dated May 30, 2012 that was issued by the State Securities Commission (SSC) regulating about adjustment in the company’s business registration licence No 29/UBCK-GPHDKD dated December 18, 2006. * The available statistics shows that in the recent three consecutive trading session, from June 1 to 5, the volume of STB-coded shares being traded via negotiation transactions reached over 93.643 million units, with total value of over 2.341 trillion dong. * Representative of ministry of industry and trade revealed that [B]Vietnam Textile and Garment Group (Vinatex) would delay its initial public offerings (IPO)[/B] that was scheduled to take place in late 2012 because at present, the group has only submitted documents for the ministry for selecting the company to calculate the enterprise value. * Tan Viet Securities Inc (TVSI) announced that from June 4, 2012, the company would lower the lending interest for borrowers. * Vietnam Dairy Products Company has offloaded over one million shares of Vegetable Oil Packing Co. (VPK) to reduce its ownership from 17.7 percent to 4.8 percent. * Da Nang Securities Company has spurred its chartered capital to 60 billion dong. * Saigon Fuel Company (SFC) has announced June 12 as the ex-dividend date to pay 2012 first round dividend in cash for shareholders at 8 percent. * Vietnam Securities Investment Fund (VFMVF1) has announced its net asset value per unit by May 31 at 15,664 dong, inching up by 86 dong against the previous week. * Cho Lon Securities Company has sold over 320,000 shares of Tan Binh Import – Export Company (TIX), a 1.3 percent stake in the enterprise. * Vneco 8 Electricity Construction Joint Stock Company has applied to trade 1.8 million shares on the Hanoi Stock Exchange. * MB Securities Company has offloaded over three million shares ofVinaconex – PVC Construction Investment Co (PW) to reduce its holding from 14.5 percent to 4.3 percent. Meanwhile, Ocean Commercial Bank has sold five million PW shares, a 16.6 percent stake in the enterprise. * Vinaconex Compound Stone Joint Stock Co (HNX-listed VCS) has lately announced that the main reason that led to the slump of 50 percent in Q1 pre-tax profit was the merger of Vicostone with Style Stone Joint Stock Co when raising its holdings to 99.9 percent. * In the annual general meeting (AGM), the shareholders of Song Da 3 Joint Stock Co (coded SD3) have approved the 2011 business results. The company decided not to pay 2011 dividend to the existing shareholders. * The northern bourse-listed An Giang Coffee Joint Stock Co (coded AGC) has lately released the Q1 business results. * The southern bourse-listed Sao Ta Food Joint Stock Co (coded FMC) has lately released the business results of May 2012. * Hoa Binh Construction and Real Estate Trading Joint Stock Co (coded HBC) has won three bidding packages worth over 900 billion dong. * Pham Quoc Thai, vice general director of Ba Ria Thermo Power Joint Stock Co (coded BTP) has announced that by the end of May, thermo power plant is estimated to have produced over 300,000 MWh. * Duong Van Khen, chief accountant of Phuoc Hoa Rubber Joint Stock Co (coded PHR) has lately released that in May, the company has sold 1,435 tonnes of latex with average sales price of 77.7 million dong per tonne. Accumulatively, after the first five months of 2012, the company reported selling 9,366 tonnes of latex, bringing in revenue of about 700 billion dong. * Pomihoa Steel Co Ltd has lately submitted application for withdrawing from Kyoei Vietnam Steel Co Ltd, a joint venture between Japan’s Kyoei Steel Group and Pomihoa Steel Co Ltd for building the new steel mill in Ninh Binh province. * Viglacera Dong Trieu Joint Stock Co (coded DTC) has recently announced to finish capital withdrawal of 2.5 billion dong in Clinker Viglacera Joint Stock Co. After DTC’s existing shareholders refused to purchase in 651,722 shares in the latest share issuance to raise the chartered capital, DTC has completed offloading shares of Clinker Viglacera Joint Stock Co to Viglacera Corp at price of 10,000 dong per share. * The management board of Dong A Painting Joint Stock Co (coded HDA) has lately approved for raising chartered capital by double, from 22 billion dong to 45 billion dong. * PetroVietnam Fertiliser and Chemicals Corp has announced to supply some 130,000 tonnes of urea fertiliser this month to meet the crop demand and cool down the price. * AEON Vietnam Co Ltd has been licensed to develop the AEON- Binh Duong Canary shopping centre project with an investment of $95 million. The project will cover 62,000 square meters in the Canary complexin Binh Duong Province’s Thuan An Town. * Ha Tay Trading Joint Stock Company has introduced [B]The Sun Garden, an apartment project located in Hanoi City’s Ha Dong District.[/B] The 35-floor building worth 355 billion dong will be kicked off in this quarter and apartments will be handed to customers in the third quarter of 2014. * Industrial Chemicals Co, Toyota Tsusho Vietnam and Taiwan-based Formusan Union Chemical yesterday started work on the plant producing surface active substances (LAS) in an area of 1.5 hectares in Dinh Vu Industrial Park, Hai Phong City. Having an investment of $6.6 million and an annual estimated capacity of 24,000 tonnes of products, the plant will provide material for detergent production and go into operation next March. * Dung Quat Shipbuilding Industry Company on Sunday handed over a 104,000- tonne ship, the largest and most modern locally-built vessel in the last five years, to PetroVietnam Transportation Corporation (PV Trans. * District 5 Public Services Company and Hung Thinh Real Estate Company have launched the sale of the 155 Nguyen Chi Thanh apartment project at prices starting from 1.5 billion per unit. * Saigon- Hanoi Commercial Bank has launched [B]iDiamond package. that increases daily limit of Internet banking transactions to a maximum of l billion dong.[/B] Customers depositing money at the bank from now to July 25 will have chances of winning a Children Care insurance productofPjico and bank accounts for kids. * Asia Commercial Bank has offered ATM money withdrawal fee exemptions for Visa cards issued in Vietnam and Europe and Master cards issued in Vietnam. * [B]ANZ Bank has adjusted lending interest rates for home-related loans to between 13.65 percent and 14.52 percent per annum.[/B]

[b]PRESS DIGEST - Vietnam newspapers - June 8[/b] HANOI, June 8 | Thu Jun 7, 2012 10:21pm EDT (Reuters) - These are some of the leading stories in the official Vietnamese press on Friday. Reuters has not verified these stories and does not vouch for their accuracy. FINANCIAL NEWS: THOI BAO KINH TE VIETNAM - Vietnam should strive to curb state budget deficit this year below 4.8 percent of gross domestic product as targeted by the National Assembly, said Phung Quoc Hien, head of the assembly's financial and budgetary committee. ECONOMIC AND GENERAL NEWS: VIETNAM NEWS - [B]Japanese companies[/B] are extremely interested in investing in Vietnam via mergers and acquisitions, following falling demand at home due to population decline, said Onji Yoshimitsu, chief executive of Japanese M&A advisory firm Recof Corp, at a forum in Ho Chi Minh City. NHAN DAN - [B]Vinafood 2[/B], Vietnam's top rice exporter, is expected to win the supply of another [B]20,000 tonnes[/B] of the grain to the Philippines after it had won a tender for 100,000 tonnes of 25 percent broken rice, priced at[B] $400 per tonne.[/B] THOI BAO KINH TE VIETNAM - Vietnamese rice businesses are concerned that the harvest of low-quality summer-autumn paddy will peak in the Mekong Delta in July and August while exporters have not secured many deals of low-quality grain so far this year, industry officials said. - [B]Vietnam's mergers and acquisitions[/B] in the first quarter rocketed 207 percent from a year earlier to [B]$1.5 billion[/B], mainly via share issues to foreign investors, VinaCapital's statistics showed. DAU TU - It is very tough to attain an annual growth of 6.0-6.5 percent this year while a 5-6 percent growth is more feasible if the government amends measures to balance the target of curbing inflation and pushing growth, National Assembly delegates said. (Reporting by Hanoi Newsroom; Editing by Gopakumar Warrier)

[b]Vietnam Cuts Fuel Prices[/b] [B][COLOR="#FF0000"]Vietnam Cuts Fuel Prices to Tackle Inflation, Growth[/COLOR][/B] By Bloomberg News - Jun 8, 2012 2:48 PM GMT+0700 (Corrects percentage change in gasoline price in first paragraph of story published June 7.) [B]Vietnam cut fuel costs for the third time in a month, lowering gasoline by 3.5 percent, as policy makers pass on lower world prices to domestic consumers in a bid to contain inflation and counter slowing economic growth.[/B] The cost of 92-RON gasoline, the most commonly used fuel grade in Vietnam, was lowered to 21,900 dong ($1.04) a liter from 22,700 dong, the Ministry of Finance said in an e-mailed statement. Diesel was reduced to 20,500 dong per liter from 21,200 dong. Fuel oil was reduced to 18,250 dong per kilogram from 18,900 dong, while kerosene was lowered to 20,400 per liter from 21,100 dong. The new prices took effect from 2 p.m. today, according to the statement. [B]Crude prices have fallen 5.3 percent since May 23[/B], when Vietnam last cut petroleum prices, amid concerns that Europe’s debt crisis and weaker-than-expected Chinese manufacturing could dent demand. [B]Lower fuel costs may help aid an economy[/B] that grew at 4 percent in the first quarter, the slowest pace since 2009. Vietnam’s inflation rate slowed to 8.34 percent in May from 23.02 percent in August 2011. “[B]We saw Vietnam’s growth slowing very sharply[/B],” Singapore-based Vishnu Varathan, market economist at Mizuho Corporate Bank, said by telephone. “Trying to relieve the pressure on consumers as well as business can only be a good thing.” Brent crude, used to price more than half the world’s oil, rose as much as 20 percent this year, amid speculation that Western sanctions aimed at halting Iran’s nuclear program will disrupt Middle East shipments. Brent for July settlement fell as much as $1.02 to $99.62 a barrel on the London ICE Futures exchange as of 3:50 p.m. in Hanoi. To contact the reporters on this story: Nick Heath in Hanoi at [email]nheath2@bloomberg.net[/email]; Nguyen Kieu Giang in Hanoi at [email]giang1@bloomberg.net[/email] To contact the editor responsible for this story: Alexander Kwiatkowski at [email]akwiatkowsk2@bloomberg.net[/email] -------------------------------- [B][COLOR="#0000FF"]Vietnam to Cut Deposit Rate Cap to Spur Economic Growth[/COLOR][/B] By Bloomberg News - Jun 8, 2012 12:01 AM GMT+0700 [B]Vietnam’s central bank will cut the dong deposit rate cap by two percentage points next week as policy makers attempt to revive the economy and encourage more lending to businesses.[/B] [B]The cap will be 9 percent from 11 percent currently and will take effect June 11[/B], State Bank of Vietnam Governor Nguyen Van Binh told the National Assembly yesterday. The reduction will support companies and is in line with easing consumer price gains that are at their lowest since 2010, Binh said. Declines in borrowing costs still don’t “meet the needs of businesses,” he said. [B]A slowdown[/B] in the Vietnamese economy is hurting companies amid a credit crunch after the central bank raised borrowing costs last year to fight what was then the fastest inflation in Asia. Gross domestic product grew 4 percent in the first quarter, the slowest since 2009, and the pace of expansion for the full year may be as low as 5.2 percent, Deputy Minister of Planning & Investment Cao Viet Sinh, said in an interview this week. “The central bank is trying to reduce the [B]funding cost of banks[/B], hoping that banks will pass on the benefit to the ultimate consumer,” said Prakriti Sofat, a Singapore-based economist at Barclays Plc. “The move will likely encourage more consolidation in the banking sector, in line with what the central bank wants, since weak banks may find it difficult to source funding.” Vietnam’s move to spur growth coincides with China’s cut yesterday of its interest rates for the first time since 2008. [B]Access to Funds[/B] Companies are still finding it [B]hard to access cheap funds from banks[/B], Nguyen Thi Kim Ngan, deputy chairwoman of the legislative body, said yesterday. Current lending rates are currently as high as 18.5 percent, according to a central bank statement on its website June 6. The central bank lowered its refinancing rate, discount rate and repurchase rate by one percentage point in each of the last three months. The Vietnamese government asked the central bank to speed up lending-rate cuts after consumer-price gains eased, according to a resolution on the government website May 10. Inflation slowed to a 21-month low of 8.34 percent in May. Binh forecasts consumer prices will rise 0.2 percent in June from May and the year-end inflation rate will be 7 percent to 8 percent. “If this is followed by cuts in other policy rates, it might be interpreted that the government is over-concerned about stimulating growth,” said Kevin Snowball, the Ho Chi Minh City- based chief executive of PXP Vietnam Asset Management. “If this is not followed by cuts in other policy rates, then it creates more of a net interest margin, which may encourage banks to make more loans.” [B]The central bank has injected about 180 trillion dong ($8.6 billion) into the economy, Binh said, calling it a “huge” amount.[/B] “Liquidity in the banking system has improved significantly,” he said. To contact Bloomberg News staff for this story: Nguyen Kieu Giang in Hanoi at [email]giang1@bloomberg.net[/email] To contact the editor responsible for this story: Stephanie Phang at [email]sphang@bloomberg.net[/email]