Category: Economy & Foreign Trade

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Cambodia & Laos Economy & Foreign Trade International Relations Vietnam

Lao PM Praises Bilateral Relations with Vietnam

Lao Permanent Deputy Prime Minister Somsavat Lengsavat praised cooperation between Laos and Vietnam over the years as a Laos inspection committee met with Vietnamese officials in Hanoi yesterday.

For the second straight year, Vietnam has been the largest investor in Laos’ economy with 48 projects worth US$1.42 billion in total capital, followed by China and Thailand.

“There are many bright prospects for bilateral economic ties,” said Prime Minister Somsavat, who is also the chairman of the Laos-Vietnam Cooperation Sup-Committee. “Laos has strong potential for hydro-electricity, land, and minerals while Vietnam has capital, capability, and technology.”

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Central Asia Economy & Foreign Trade Finance & Taxes

The Tugrik is on the Rise and Mining may Resume in Mongolia

1 TugrikIn Mongolia, where no coins are used, the country’s national currency, the tugrik (or tögrög), has slowly been making a comeback due to massive deflation and significant revaluation against the U.S. dollar.

As such, the humble 1 tugrik banknote – the smallest currency denomination in Mongolia, worth roughly US$0.0007 – has re-entered the daily lives of Mongolia’s citizens after being virtually unusable in recent years.

In addition, an end to the impasse between the Mongolian government and the worlds mining corporations looms on the horizon, which would likely ensure that the country comes out of the recession in better shape than it went in.

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Eastern Europe Economy & Foreign Trade

Recession Expected to Continue through 2010 in Baltic Region

Nordea Bank AB has predicted that Estonia, Latvia, and Lithuania will experience negative growth in 2010 as their economies fail to rebound as quickly as the rest of Europe.

In the company’s Baltic Rim Outlook yesterday, the region’s largest bank predicts Estonia’s GDP to fall by 0.5 percent, Latvia’s by 2.9 percent, and Lithuania’s output to shrink 2.4 percent before the countries return to positive growth in 2011.

Even then, the growth rates will not match those of a few years ago with expected growth rates of only 4 percent, 2.7 percent, and 3 percent in Estonia, Latvia, and Lithuania, respectively.

Within the European Union, the Baltic states have been hit the worst following the collapse of their real estate sector and languid growth in western Europe, where the three countries look to for more than 60 percent of their foreign sales.

“The hopes of recovery largely rely on the export sector, but so far demand from the main export partners is only growing cautiously,” Nordea Bank said in their report.

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Economy & Foreign Trade Finance & Taxes Vietnam

Vietnam Plans Billion Dollar Debt Sale

Vietnam plans to sell $1 billion of 10-year dollar-denominated bonds in an attempt to curb inflation, an expanding trade deficit, and a weakening national currency (the dong).

The sale could occur as early as this week with a coupon rate of not greater than seven percent, according to Vietnam’s central bank.

“The new issue should have an absolute yield of around 6.85 percent to 7 percent,” said Sergey Dergachev of Frankfurt-based Union Investments. “Vietnam is economically much weaker, with significant twin deficits and a highly managed exchange rate.”

The proceeds of the sale will help fund Vietnam Oil & Gas Group, Vietnam National Shipping Lines, Song Da Corp., and Vietnam Machinery Installation Corp., the State Bank of Vietnam said in a statement on their website.

The sale may also help the floundering Vietnamese dong which depreciated 5.4 percent last year against the dollar and is currently trading at VND18,420 to USD1.