Vietnam practically evaded all the direct problems that came with the financial crisis, but the country was mildly affected by the diminished export demand. The Vietnamese economy and related exchange traded fund (ETF) may show a significant expansion as other countries start increasing imports.
PXP Vietnam Asset Management says Vietnam’s economy could grow 7.5% this year, reports Jason Folkmanis for Bloomberg. The Vietnamese economy expanded 5.3% in 2009 after a drop in demand for exports and foreign direct investment. PXP believes the gradual recovery in export demand will provide the extra push in economic expansion.
The International Monetary Fund projects 6% growth this year and the Vietnamese government estimates 6.5% expansion. [Why Vietnam is on track for growth.]
Vietnam, the world’s second-largest exporter of rice grain behind Thailand, saw a 68% surge in rice exports in December from November. Inflationary pressures are likely, especially in the price of food, and experts predict that inflation could reach double digits by the second quarter.
Harvard University Professor Joseph Nye points to Vietnam’s open economy, foreign direct investment and increasing exports as factors that aided the country’s rebound from the recent global financial downturn, according to SGGP. Pime Minister Nguyen Tan Dung says Vietnam has been expanding its market economy and boosting international economic integration.
For more information on Vietnam, visit our Vietnam category.
- Market Vectors Vietnam (NYSEArca: VNM)
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.