The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Vietnam: The price of progress

Rapid growth can mean rising inflation, as Vietnam is discovering.

Readers of the financial media and users of trading terminals will have become accustomed to seeing graphs with sharp downward curves in recent months. However, not all of them are directly related to the sub-prime mess. Vietnam’s Ho Chi Minh City Stock Exchange Index, known as the VN Index, has been in free fall for most of 2008 for reasons that have as much to do with growth as sub-prime failure.

After peaking at 1,100 in November 2007, the VN began a steady decline, halving in value by March 2008 and reaching a low of 496 as Euromoney went to press. Foreign investors are spooked: the government has embarked on a programme of strict tightening that has hit markets hard, just as investor caution in the current bout of volatility has encouraged a sell-off of riskier stocks. This round of rate cuts, however, has less to do with global liquidity issues than a pressing domestic concern, one that has always dogged countries that are growing fast.

China has been hogging the headlines recently, but there’s another communist-run Asian state undergoing a period of transformative growth at the moment. Vietnam’s GDP has been growing at about 8% for the past four years, and the government has targeted 9% for 2008.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree