Are Viet banks protected from the worsening global depression?

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Izzy_Cool

Good question Traveller...and one that affects all of us to some degree or another. My opinion, for what it's worth is thus:

We already had ashake-up with the stock market crashing and the government clamping down on credit. So we're reorganising now.

The Vietnamese Dong is still non-convertible, so I don't see a huge impact on us in regards to currency speculation. Today's problem is NOT a repeat of 1998 which was caused solely by Soros' crashing the Thai economy.

I think we WILL be affected in terms of FDI.
South Korea, Japan, Singapore, Thailand and the US will be very cautious with regards to investment for the next 6-12 months (or until the global economy stabilizes). So we WILL be affected in a secondhand way.

Here in Vietnam, we will weather the storm as we always do. With a "grin and bear it" attitude and the knowledge that things will always get better sooner or later.

Personally, this crunch is born of a lack of confidence. Bush caused it through poor economic practices, but if everyone keeps their heads straight, we can get on with business a lot faster.

nguyenthanhtungtinbk

I don't think Vietnam will have a big problem, because:

- First of all, the big hedge funds in the world will have very small chances to make financial crisis in Vietnam (which happened to Thailand in 1997), if Vietnam can keep the exchange rate with the other currencies stable like now and also because of some other currency restrictions like you said. If the crisis could happen in Vietnam, it happened in June or July this year I think (but it didn't). The goverment and the banks had good lessons from that time and many things have been improved. The government has also kept an eye on money flow in-out of Vietnam.

- In recent months, the macroeconomic situation has experienced positive changes: Inflation has slowed down and gross domestic product growth rebounded at 6.55 per cent in the third quarter of this year.

- The economy in Vietnam is still not 100% opened even though Vietnam joined WTO. For example: Not all foreigners can buy property in Vietnam. This will decrease the risk of money investment with no observation.

- Some other evidences can be seen. For example, AIG in the US got in a big problem but AIG Vietnam (the child company) is still making profit ^_^

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