Monday, October 06, 2008

Vietnam's Troubled Economy

From Time.com

A year ago, Vietnam was being hailed as the next Asian miracle, a success story to match the rise of the Asian tigers of the 1990s and more recently the stunning growth of China and India.

Thanks to economic reforms, the communist country was attracting record amounts of foreign investment. The economy expanded by 8.5% last year—among the fastest rates in the region—and housing prices doubled and tripled, driven up in part by frantic buyers who stood in line to snap up condos before they had even been built. The country's nascent stock market was minting millionaires. In Hanoi and Ho Chi Minh City, their flashy new cars clogged roads better suited for bicycles.

But a funny thing happened on the way to prosperity. Halfway through 2008, Vietnam's authoritarian government finds itself grappling with soaring prices, collapsing markets and an increasingly restive workforce. Inflation, now running at an annual rate of 25%, is eating up much of the gains made by citizens over the last several years. Vietnam's stock market, which has fallen 58.5% since January, currently holds the unhappy title of being the worst-performing in the world in the last 30 days.

Citing the government's difficulty in reining in inflation, Moody's, which grades creditworthiness, lowered Vietnam's ratings outlook last week to negative from positive. Poor ratings signal that banks may have trouble meeting their financial obligations, undermining investors' confidence in the country.

In a nutshell, the economy overheated and the government was too slow to respond, says Jonathan Pincus, chief economist for the United Nations Development Program in Vietnam. "It's how we got into this problem," he says.

Read whole article

1 Comments:

Blogger qqqqqq said...

0822jejeadidas zx flux femme bronze En étudiant asics gel noosa tri 11 France les défis rencontrés par les équipes virtuelles multiculturelles, Vinaja a constaté que nike air jordan low retro ces problèmes incluent des pannes de communication, des conflits nike jordan prix france possibles entre les membres, des retards dans les réponses, des basket nike hommes presto fly heures de travail limitées, un manque de synergie chaussures adidas zx flux noir dans les équipes multiculturelles et des vacances différentes. Le nike air jordan spizike homme profil standard en forme de poire et le profil inférieur air jordan officiel france permettent une adresse et un swing sûrs. nike air jordan 11 retro low Les chaussures de basket-ball plus chers que Nike utilise ces technologies similaires. air jordan future low noir femme

10:57 AM  

Post a Comment

Subscribe to Post Comments [Atom]

<< Home