Hanoi builders ordered to stop quoting in dollars

December 30, 2010 | 17:46

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The State Bank of Vietnam here has ordered Ba Dinh Joint Stock company, a company of construction consultants, to stop insisting that payments for its apartments be made in US dollars.

The company has been offering apartments in the Hattoco project located in Mo Lao, Hanoi's Ha Dong district. However, all sales prices are quoted in greenbacks.

The State Bank said that the company's contracts did not conform with Foreign Exchange regulations.

The company has been told to cease the practice – or face stiff fines.

The bank took action after receiving many letters of complaint earlier this month.

Ba Dinh company director Luong Van Phu was quoted by local online newspaper Vnexpress.net as saying that the company had not received any advice from the bank.

"We will comment when we receive the document," Phu said.

However, Phu said that while apartment prices were quoted in dollars, the company converted prices into Vietnamese dong – but he did not say at what rate.

He also claimed that the technique was used "just to save equity and overcome variations in construction material prices".

The Foreign Exchange Ordinance forbids listing or selling goods in foreign currencies.

VNS

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