VIETNAMESE ECONOMY UNDER THE MICROSCOPE

Vietnam is one of the countries identified as potentially at risk  from the present financial crisis in a report by credit insurer Coface today. The report described the economy of Vietnam, alongside those of Estonia and Latvia as “overheated” and said: “Years of strong growth have deepened external imbalances and stimulated inflation. Moreover, households and businesses are carrying considerable foreign currency debt.” Vietnam, whose B rating was placed on negative watch, is facing an important foreign exchange crisis, Coface said. However the same report said the so-called BRIC economies (Brazil, Russia, India, China) had so far managed to dodge the full effects of the crisis.