Sectors

Vietnam urged to focus on FDI to achieve stability

Date: 28 Nov 2009

The State Bank of Vietnam’s surprise decision to devalue the currency heightened concerns about investing in the country. But Moody’s Economy.com argues that policy-makers must encourage FDI to finance the trade deficit.

Keywords (click to search): [Vietnam] [FDI] [Matt Robinson] [Moody's Economy.com]

Pamela Tang
Greater foreign direct investment (FDI) and sounder fundamentals hold the key to Vietnam achieving stability in the longer term, says Moody’s Economy.com.

The nation’s economic progress has been called into question after the State Bank of Vietnam, the central bank, decided to devalue the dong by 5.4% to 17,961 against the US dollar on November 25.

This move caught some investors by surprise and has heightened concerns about investing in the country.

The devaluation was designed to curb a widening trade deficit, but some, such as Matt Robinson, an economist at...

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