VN asked to stabilize exchange rate to minimize risks of public/private projects  Hiroshi Wantanabe, general director of JBIC, the He said while the In principle, investors will consider the exchange rate fluctuation risks when calculating the prices of the products. However, with PPP mechanism, the risks should be allocated to the parties which can handle the problems in a best way. Therefore, he said, Wantanabe from JBIC also said that foreign investors want the State Bank of If policies change regularly without predictions in advance, investors find it difficult to calculate expected profits and figure out the measures to apply when necessary. The current strict regulations on foreign currency conversion have also caused foreign private investors to hesitate to implement projects in When developing thermal power projects in This means that investors will have to convert VND into foreign currencies to transfer profits abroad and pay bank debts. Meanwhile, they face many difficulties in converting dong into other currencies due to current strict regulations. This is the reason why foreign institutions have been insisting that the government of Le Van Tang, Head of the Bidding Management Agency, said the responsibility of the government of However, Tang said “We have referred to international laws and consulted with experts and found that no one can ensure the exchange rate would not fluctuate after 40 years, and that it is the job of investors to consider risks before making investment decisions,” Tang said. An expert who asked to remain anonymous also commented that no government in the world can commit to keep the exchange rate unchanged for many years. He said it would be better for investors to count on the exchange rate risks when calculating the contracts’ value. VNE |
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