Regulation

High Expectation for Organic Fertilizers

March 16, 2012 (Vietnamica) — According to Institute of Agricultural Environment, Vietnam would need 13 million tons of organic fertilizers for its 15.26 million ha of agricultural areas. Statistics provided by the Ministry of Agriculture and Rural Development revealed that over 150 companies are producing over 500,000 tons of organic fertilizer per year, but most were small with a capacity of just 500 to 2,000 tons per year which could not meet the country’s demand (VNS, Mar 03).

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State Bank of Vietnam: The Media Provided Incorrect Information About Acquisition of HBB

March 14, 2012 (Vietnamica) — The State Bank of Vietnam, on March 13, has released that the central bank has not received any report and/or request for approval on the acquisition of HBB by SHB. The central bank affirms that the media provided incorrect information about this alleged deal. The SBV’s release, however, does not mean there would be no acquisition of HBB.

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Sabeco: Long Way to the Bourse

March 14, 2012 (Vietnamica) — Saigon Beer-Alcohol-Beverage Corporation (Sabeco) was equitized in 2008. Following its IPO, the Ministry of Industry and Trade – representative of the State – holds 89.59 percent of Sabeco’s charter capital. However, in a recent information disclosure, it is revealed that the State’s holdings in Sabeco are accounted for just 51 percent. Other shareholders and investors, in light of this, are wondering who has silently acquired the country’s largest beverage manufacturer (DTCK, Mar 14).

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SHB Fully Acquires HBB – Who Knows?

March 13, 2012 (Vietnamica) – VnEconomy – one of the largest economic and business newspaper in Vietnam – on Mar 12, has reported that Saigon Hanoi Bank is fully acquiring Habubank. The State Bank of Vietnam has reportedly agreed on the deal in principle. The two banks have allegedly signed an agreement on swapping 1.34 shares of HBB for 1 share of SHB. The deal is advised by Vietcombank Securities. The acquisition will also bury Habubank brand.

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William Lowther Denied Bribing Former Vietnamese Central Bank Governor Le Duc Thuy

March 10, 2012 (Vietnamica) — William Lowther, one of Cumbria’s most high-profile businessmen, has denied allegations he attempted to bribe a former Vietnamese central bank governor Le Duc Thuy. The charge relates to allegations that he conspired with five men to bribe Le Duc Thuy by helping his son obtain a place at Durham university and by paying for accommodation and course fees in 2003 (Financial Times, March 9).

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Vietnam: Central Bank Plans to Cut Rates by 1Pct

March 9, 2012 (Vietnamica) — The Governor of the State Bank of Vietnam has announced that the central bank plans to cut rates by 1 percentage point shortly. To this end, the refinancing rate will be lowered from 15 percent to 14 percent, while the cap on deposit interest will be cut from 14 percent to 13 percent. The plan reminds that Asia’s smaller economies remain highly vulnerable to a weakened global economy, despite recent signs that growth is firming up in the region (WSJ, Mar 7). Meanwhile, one may think the cut is too soon (FT, Mar 7).

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