Gas prices continue to jump

For the third time in recent weeks, domestic gas prices have climbed upwards.

The Saigon Petrol Company has said it will increase the cost of cooking gas by VND1,833 a kilogram from November 28, while the price of a 12-kilogram cylinder will climb by VND22,000 to VND267,000.

Other companies including Saigon Gas, Elf Gas and Total Gas have also raised their prices by VND22,000-26,000 for a 12-kilogram cylinder.

Cooking gas has now seen a total increase of about VND40,000 per cylinder over the last several weeks.

Gas importers blame the increase on the global price of gas combined with a change in the exchange rate of the US dollar against the Vietnamese dong.

Nguyen Si Thang, chairman of the Vietnam Gas Association said that although world gas prices have risen notably over the past week, the association has asked its members, including Petrol VN Gas, VT Gas, Petrolimex, and MT Gas, to keep prices unchanged until the end of November.

In addition, some domestic gas traders are taking advantage of the world price and increasing their stockpiles. Thus, gas companies are forced to boost retail prices to stabilize the market, he said.

Vietnam, Germany seek ways to boost cooperatives

The experiences of Germany and measures to develop cooperatives in Vietnam topped the agenda at a workshop in Tay Ninh province on Nov. 27.

Speaking at the workshop, Hildergard Von Walther, Southeast Asian regional Director of a cooperative development project run by the German Cooperative Federation, said that the most important thing for development is to find out what the obstacles are to the growth of cooperatives.

The German expert also emphasised the implementation of regulations and polices as well as the provision of training courses and consultations to cooperative members. She pledged to help cooperatives in Vietnam in the field.

The two sides also analysed and reviewed the operation of cooperatives in Vietnam and Germany to identify problems and draw lessons.

The Vietnamese side drew a lesson from the German model that cooperatives should be set up based on their members’ real needs and desires and their operation should be flexible, adapting to changes on the market.

Director of the Vietnam Cooperative Union’s Information and Communication Department Hoang Van Long acknowledged shortcomings in training and law enforcement in Vietnamese cooperatives and confirmed that cooperative members are at the very heart of the health of a cooperative.

Vietnam’s first Rice Festival kicked off today

Vietnam’s first Rice Festival took place in the southern province of Hau Giang on November 28 and lasts to December 2.

The Festival includes a variety of activities: to present Gold Cup to prestigious rice exporters of Vietnam, ‘Agricultural God of integration’ Gold Cup to outstanding farmers, a prize-giving ceremony to commend people who are good at agriculture encouragement. Additionally, awards will be presented to farmers who have initiative in agricultural production. Also, farmers from the Cuu Long River Delta will compete in a boat race during the Festival.

On the sideline of the Festival, there will be several art performances themed ‘Honouring Vietnam’s rice’, ‘Greeting Vietnam’s ricefields’ and so on.

Viettel wins best telco award

National telecom giant Viettel (Vietnam Military Telecom Corporation) has won the Best Operator in a Developing Market award at the World Communication Awards 2009.

Viettel had been nominated for two awards at this year’s event-for Best Operator in a Developing Market and Best Regional Operator. However, the Best Regional operator award was given to COLT Telecom Group SA, a European company.

Among 17 winners announced at the awards night in London on November 25 were globally famous companies like Starhub of Singapore, British Telecom and Orange Business Services of France.

Last year, Viettel, the largest mobile network operator in Vietnam in terms of subscribers was also nominated for the ‘Best Operator in a Developing Market’ award but did not win.

The award is open to all fixed and mobile operators and service providers with all or part of their business operating within what as widely recognised as a developing nation. The World Communication Awards recognise the achievements made by companies and individuals to increase innovation, and great new services that are helping to shape the industry’s future.

Sale of borrowed stocks banned

The government has prohibited the short sale of stocks in a move to stabilize the shaky exchange.

According to the order given by the State Securities Commission (SSC) on Tuesday, brokerages starting next month will be limited to allowing their customers to sell only stocks that they own in their accounts, meaning the soonest they can sell a stock is four days after they buy it.

Under Vietnam’s Securities Law, which took effect at the beginning of 2007, brokerages can allow short-selling – the sale of borrowed stocks in the hope of buying them back at a lower prices – in accordance with instructions by the Finance Ministry.

Though the regulation is still pending official guidance, many large brokerages have already lured investors by allowing them to sell shares one or two days after they buy them.

Pham Trung Minh, head of registration at the depository, told Dau tu chung khoan that selling stocks less than four days after buying them meant that the sellers were essentially selling borrowed stocks, as the shares would not yet be officially registered in their accounts.

Many brokerages that allowed short sales said they weren’t violating the law and were merely making use of a loophole.

Short sellers often seek out troubled companies and anticipate drops in market prices, so they sell borrowed shares at high prices and then buy them back at a lower cost for profit. Some analysts believe that short sales are a major cause of market downturns.

General director of a brokerage who wished not to be named said some customers had directly threatened him that they would switch to his competitors if he refused to allow short sales two days after they buy.

Phuong Hoang Lan Huong, general director of Vietnam Securities Depository, told Thoi bao kinh te Saigon short-selling occurred at her company because it did not keep track of each broker’s account.

Nguyen Thanh Ky, general secretary of Vietnam Securities Association, said short sales while shares are still “on their way” to customers’ accounts was no risk to the market as the shares were technically already the investors’ assets.

Nguyen Hoang Hai, Ky’s counterpart at the Vietnam Association of Finance Investors, suggested allowing brokers to participate in trading sooner than four days after they buy stocks, so that investors can be more active and reduce risks.

VietNamNet/VNA, TN, ND, SGGP