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Vietnam's Macro Stability Put First

August 28, 2012 | 1308 GMT
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Vietnamica

Official and unofficial news recently on arrests and political fight among powerful business figures in the country have unnerved domestic markets. The arrest of financial tycoon Nguyen Duc Kien had ripple effects in the financial markets last week. Today investors continue to lose their direction on receiving a series of sensitive news [see story below] from the media.  However, observers have suggested that macro stability is always set as the top priority under all circumstances.

The following signals explain this suggestion.

  • It is expected that efforts to clean up the economy would be finished on arrests of some greatly influential business figures;
  • Political and economic happenings reveal that stabilizing macro economy is still set top priority;
  • Government bodies, such as State Bank and Ministry of Finance, will continue to support the business sector;
  • Organization of the executive branch and monetary system would likely be maintained. In other words, political stability is likely remained.

 

Masan's Chair Dismisses Arrest Rumor

Masan's Chairman Nguyen Dang Quang had dismissed rumor about his being arrested last week. Quang said that he has been in the U.S. and heard of the rumor through friends. "I don't understand what caused the rumor," Quang said (Zing/Infonet, August 26) .

Quang's arrest rumor was spread a few days after the arrests of financial tycoon Nguyen Duc Kien and ACB's CEO Ly Xuan Hai that had sent shockwaves through Vietnam's financial markets early last week. News on these arrests had been published by the media on several occasions before the official confirmation from authorities.

In the early morning of August 27 Quang told news reporters that he has been in Hong Kong and was on his way to Vietnam. He said he would be at New World hotel at 16:00 PM to chair the 10th celebration of Masan Consumer (Infonet, August 27).

 

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