[Vnbiz] Vietnam's position on economic issues

[Vu The Binh]

Anh Hoanh,

When the government said 1, people would see it as 0, and vice versa. 
You can see if if checking the sayings of government since last year. 
That means, 40% could be feasible, though the government has been trying 
to have some strong actions during last few days.

Second, rushing to buy USD not only due to the "spirit" of the crowd, 
though that is an important point. The fact probably is: capital is 
flying out of the country. Also, government bonds are being sold by the 
foreign investors in the stock market with low price (any one can 
confirm it?). Big guys are buying dollars for getting them out of the 
country, probably.

In the other view, who can have lots of money for buying gold, dollars 
... if not the one related to corruption. And who can have chance to 
corrupt? They are also the one who start to buy gold, dollars first, 
since the first sign of possible "crisis".

Let's see what government can do and what the people is going to do next 
week.

Have a nice weekend,

Binh.


Tran Dinh Hoanh wrote:
> [ Vietnam Business Forum ]
> 
> 
> 
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> 
> Dear CACC,
>  
> The following article is about the Vietrnamese government's position on 
> a numer of issues that we have discussed lately:  Eventual devaluation 
> of the VND upto 40%?  No.  Vietnam needs IMP support (for the dong)?  
> No.  Balance of payment:  Still has 1 billion USD in surplus.  
> Indirectr-investment capital flight:  Vietnam is not worried about it 
> and will not try to stop it.  High USD exchange rate on the free 
> market:  SBV doesn't like it and will enforce its offical rate 
> thoughout.  (I don't like this SBV position. Obviously SBV is trying to 
> keep the USD low (and the VND high) to hold down inflation.  This is a 
> lot of work and generates other pressures from distorting the economy 
> too much..  The situation like a couple of days ago is much better:  
> Allowing the USD to go up to its true value (in the free market) would 
> help export, and keeping USD low in the commercial banks would help 
> import, and withdrawing VND back through the sell of USD to commercial 
> banks to reduce inflation.  This arragement won't work well in the long 
> term, but for a short while, it may work out very well).
>  
> Have a good day!
>  
> Hoanh