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As the Dong Falls, Vietnam Faces a Harder Test at the Time of Global Crisis

By John Dermody, Travis Hodgkins, and Nema Milaninia

The Financial Times recently reported that the Vietnam's dong is depreciating steadily as budget deficit and account imbalance grows with "chronic current account deficit that reached $8.4bn, or 9.3 per cent of gross domestic product, in 2008". Vietnamese government is facing the threat of not gathering enough money for its $80bn fiscal stimulus package as bonds and other commercial tools are falling flat. Investors are holding onto foreign currency due to the uncertainty of the dongs mostly credits to growing trade imbalances and insufficient foreign reserves. This is a predictable test that most developing countries face at this stage of...

Full post as published by Transnational Law Blog on June 07, 2009 (boomark / email).