Vietnam Economic News: 31.5 – 7.6.2024
Summary of Vietnam Economic News: 31.5 – 7.6.2024
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Summary of Vietnam Economic News: 31.5 – 7.6.2024 ---
VIETNAM SPEEDING UP SOUTH CHINA SEA ISLAND-BUILDING PACE, US RESEARCHERS SAY
Reuters News – 7 June 2024
Vietnam has been increasing its dredging and landfill work in the South China Sea, creating almost as much new land as in the previous two years combined, setting the stage for a record year of island-building, U.S. researchers said on Friday. Since November 2023, when the Washington-based think tank issued its last report, Vietnam has created 692 new acres (280 hectares) of land, compared to 404 acres created in the first 11 months of 2023 and 347 acres in 2022, the Center for Strategic and International Studies' Asia Maritime Transparency Initiative said in a new report. China, which has been building islands in the South China Sea since 2013, claims sovereignty over vast swathes of it, including the areas where Vietnam has been building up islands. The sea is one of the world's most contested waterways, where more than $3 trillion of trade passes each year. China, Brunei, Malaysia, the Philippines, Taiwan and Vietnam have lodged competing claims for some or all of the Spratly Islands. The activity has raised fears that the area is becoming a flashpoint that could yield serious consequences in global affairs.
VIETNAM TYCOON ON DEATH ROW FOR MASSIVE FRAUD ILLEGALLY MOVED MONEY OVERSEAS, POLICE SAY
Reuters News – 6 June 2024
Vietnam real estate tycoon Truong My Lan, sentenced to death in the country's largest-ever financial fraud case, had illegally transferred money abroad, according to police, with state media on Thursday reporting $4.5 billion had been moved. Police said late on Wednesday an investigation into those transfers and money laundering has been completed, but gave no further details. State media said on Thursday that Lan had illegally transferred $1.5 billion out of Vietnam and moved $3 billion into the country. The reports did not specify which countries were the recipients or origins of that money. A court in April sentenced Lan to death for her role in siphoning off more than $12 billion from Saigon Joint Stock Commercial Bank (SCB), which she effectively controlled through dozens of proxies, despite rules strictly limiting large shareholding in lenders. SCB did not immediately respond to a request for comment on Thursday and Lan's legal representatives could not be reached. Lan is also accused of laundering 445.7 trillion dong, including the money she and her accomplices siphoned off from SCB and from her illegal bond issuance, state media reported on Thursday. ($1 = 25,425.0000 dong)
VIETNAM CENTRAL BANK SAYS IT HAS RESOURCES TO STABILISE LOCAL GOLD MARKET
Vietnam News – 29 May 2024
Vietnam's central bank said on Friday (Jun 7) it "has enough recourses and determination" to stabilise the domestic gold market, amid a sharp rise in local gold prices this year. "The State Bank of Vietnam (SBV) is simultaneously implementing measures to stabilise the market, and has obtained initial objectives," it said in a statement. Gold is a popular investment choice and a wealth preservation tool in Vietnam, where the central bank tightly controls the imports of the metal. The latest import batch was more than a decade ago. Domestic selling gold prices rose 11.5 per cent in the first four months of this year, and at the end of May remained 20 per cent higher than international prices. To cool down domestic prices and narrow the gap, the SBV held six gold auctions from Apr 23 to May 23, selling 1.8 tons of the metal. On Monday, the SBV started selling gold to the market through four state-owned banks. The central bank on Friday set its gold price at 75.98 million dong (US$2,988.75) per tael, compared with a recent peak in domestic market price of around 90 million dong in mid-May. A tael is equivalent to 37.5 grams, or 1.21 troy ounces. The central bank in its Friday statement brushed off information on social media that it was short of gold for sale as "fake news".
VIETNAM VINUNI WON GBP1 MILLION GLOBAL GRAND PRIZE IN THE TRINITY CHALLENGE
Dow Jones Institutional News– 7 June 2024
On June 6, 2024, The Trinity Challenge (TTC), an organization dedicated to finding innovative solutions for the world's most pressing health challenges, awarded the Grand Prize worth GBP1 million, the largest prize in TTC 2024, to the virtual veterinary platform solution Farm2Vet. The solution is led by lecturers from VinUni University, faculty on antibiotic resistance in Veterinary Medicine, with the expectation of effectively addressing the issue of antibiotic resistance in veterinary medicine - one of the top 10 greatest global health threats. VinUniversity is a private, not-for-profit university established by Vingroup - the largest private conglomerate in Vietnam. VinUni aspires to become a university of excellence with a mission to develop talents for the future. The University has built strategic collaborations with Cornell University and the University of Pennsylvania - a choice that speaks to our commitment to excellence, innovation in research and teaching, and to making a difference in the world.
VIETNAM DOMESTIC FLIGHTS PRICE STILL SOARING
Vietnam News – 2 June 2024
Domestic air ticket prices have become a headache for many families and tourists making travel decisions. This has not only affected consumer pockets, but the domestic tourism and aviation industries as well, analysts have said. The average price for economy class tickets on Vietnam's domestic routes has surged by up to 25 per cent yearon-year. "Aside from Vietnam, airfares are generally high worldwide because prices are the function of supply and demand," said Subhas Menon, Director General of the Association of Asia Pacific Airlines. "If demand is much more than supply, then prices tend to be high. So, this is the case now. Just look at aircraft deliveries and delays. Supply is not keeping up with demand." Also, aircraft recalls for inspection and repairs and the modest quantity of newly leased aircraft have led to a significant decline in the number of commercial planes in the market recently.