Is Vietnam In a Downward Spiral?
Here’s a run down of the recent woes in Vietnam. As you may recall, they are one of the few Asian emerging markets to be downgraded by the ratings agencies from Ba3 to B1 by Moody’s – both junk ratings. Most of the other ratings in emerging markets are going the other way. There is high inflation and a major accounting scandal sullying the waters. The Vietnamese Dong is depreciating as real interest rates remain too low. The Vietnamese government has refused help so far. So the question becomes: Is Vietnam in a downward spiral?
The CNBC video below reviews the relevant issues.