Vietnam dong to be added to Big Mac Index Nguyen Van Phu By Nguyen Van Phu - The Saigon Times Daily The first McDonald’s store takes shape in HCMC and is scheduled for opening this Saturday at 2-6 Bis Dien Bien Phu Street, District 1 - Photo: Tuan Linh HCMC – When the first McDonald’s outlet makes debut in HCMC this Saturday, The Economist, a world’s leading economic news magazine, will certainly keep close watch over the event as it is the publisher of the Big Mac Index. The Economist publishes the index as an informal way to measure the purchasing power parity (PPP) between two currencies. Therefore, in an article about Big Mac Index updates early this year, the newspaper said it would add Vietnam dong currency to the index next month after McDonald’s inaugurates its first store in the country. The index is named after a hamburger sold at McDonald’s stores, the Big Mac. The exchange rate between two different currencies is the value … [Read more...] about Vietnam dong to be added to Big Mac Index
Purchasing power parity example
Đà Nẵng - Slow institutional change is seen as a 'bottle neck' in boosting Việt Nam's economy and growth in the context of world development during the next two decades, according to Nguyễn Văn Vịnh. Vịnh, Deputy Director of Strategy Institute under the Ministry of Planning and Investment, made his remarks during a workshop entitled Việt Nam 2035 Aspirations: Development of Dynamic Private Sector and Need for Institutional Modernisation in the central city yesterday. Vịnh emphasised that institutional reform in Việt Nam has yet to catch up with rapid changes in the world economy and trade, and the country can sometimes appear backwards, in comparison to other nations. Vịnh, who is a member of the compilation council for Việt Nam's Report 2035 by the World Bank, said Việt Nam remains behind other countries in the region and world in economic development. "Việt Nam is a success story, following a 30-year renewal process, but we lag behind other countries economically due to different … [Read more...] about Institutional changes help boost economic growth
The Hanoitimes - Vietnamese scientists, in reply to the criticism that they are parasites on society because they produce few inventions, say they do not receive enough money to conduct scientific research. Associate Professor Dr Pham Bich San, Secretary General of the Vietnam Union of Science and Technology Association VUSTA, repeatedly said in local newspapers that while Vietnam has an excessive number of scientists, it seriously lacks patent co-operation treaties (PCT) or valuable inventions. Scientists say they have to conduct scientific research in poor conditions and with limited financial capability. An official of the Ministry of Science and Technology (MST) noted that the science development of a country heavily depends on research and development (R&D) expenditures and works. The GERD index (Gross domestic expenditure on research and development) of Vietnam not only is far below that of big economies like the US and China, but also that of smaller countries. South … [Read more...] about VN not offer enough financial support for research, scientists say
VietNamNet Bridge - "How much did Vietnam have to trade off to join the Trans-Pacific Partnership (TPP) and the Vietnam-EU Free Trade Area (FTA)? Surely, we will have to pay dearly for them when the tax rate falls to zero percent," said Prof. Nguyen Mai, Chairman of the Vietnam Association of Foreign Invested Enterprises (VAFIE) at a recent seminar. From the left: Prof. Nguyen Mai, Dr. Le Dang Doanh, Dr. Nguyen Tri Hieu. Prof. Mai said Vietnam has recently promoted the TPP too much, but it remains a big question when the TPP will take effect. The VAFIE Chairman said many people believe that Vietnam is becoming the world’s factory, but he wondered how Vietnam can become its factory with its current way of production. He also expressed concern about the perception of global integration of officials and entrepreneurs at the local level. "How foolish is it to let foreigners be the main beneficiaries in the Vietnamese market? Who instructs Vietnamese private businesses to benefit … [Read more...] about TPP – what is the cost for Vietnam?
Credit growth negative for last two months The credit growth of the banking system as of Tuesday stood at minus 0.16% against late 2012, versus minus 1% in January and minus 3% in the same period last year, according to the Credit Department of the State Bank of Vietnam (SBV). The credit growth for 2013 is set at 12%, counting banks’ investment in government bonds. A senior source from SBV said whether this target can be achieved or not greatly depends on the capital absorptive capacity of the economy and the health of enterprises. The Credit Department said it would continue to strictly manage credit quality of banks to prevent capital from flowing into inappropriate places, producing no effect. Classification of credit groups will be announced soon. SBV will take into account governance capacity and capital scale of each bank and then list them into groups with specific credit growth limits. Strong banks that have already merged with weak banks resulting in higher bad … [Read more...] about BUSINESS IN BRIEF 23/2