Vietnam has been a dumping ground for U.S. inflation, but in spite of this the country’s currency has continued to rise in value. The country has had one of the fastest economic expansions out of any other country in the world. The Vietnamese dong has survived in spite of constant devaluations and political problems that have affected the country, and its economy is one of the fastest growing economies in all of Southeast Asia and the rest of Asia. Now is an excellent time to invest in Vietnamese dong because the currency is expected to be revalued soon, and it will eventually reset to its true value which is much higher than what it currently is, compared to the U.S. dollar.
Why the Vietnamese dong will reset
As the economy of Vietnam continues to grow, many other countries have begun investing in Vietnam and opening factories and other facilities. The country has become one of the most attractive places in the world to invest because of the many opportunities that have arisen. In the past, the IMF devalued the Vietnamese dong with pressure from the United States because of trade sanctions that were placed on it. The devaluations kept the value of the Vietnamese dong low, and people in the country were forced to use U.S. dollars for much of their trading. The sanctions were eventually lifted in two stages, and since then the country has rebounded quickly economically.
Vietnam made a transition from a communist to more of a capitalist economy
Vietnam has made the transition from its previous Soviet influenced communist economy to much more of a capitalist economy. In 1980, Vietnam was one of the poorest countries in the world, but those who visit Vietnam now will see heavy traffic, large corporate buildings, modern restaurants and more in Ho Chi Minh City and Hanoi among many other cities. The economic development that has occurred over the past thirty years in Vietnam has been nothing short of amazing, the country’s economy has even weathered the storm of a global recession with its large amount of foreign investment and its impressive export numbers.
Vietnam has a rapidly growing economy
Vietnam’s economic growth is on pace with some of the fastest growing countries in Asia, and it has the fastest growing middle class as well. It has an excellent GDP to debt ratio and its natural resources are currently being developed, including its plentiful oil and gas fields. With the rapid pace of development for the country, it is expected that eventually its currency will reset to its true value, as it is currently pegged to the dollar. If the Vietnamese dong is release from its current dollar peg, it may rise to be much higher than what it is currently worth, and the free market will begin to dictate what the currency should be trading at. Even now, many people prefer using the dollar in Vietnam, but the country needs its own currency so that it can do business with other countries without reliance on the dollar, and this is expected to occur within the next few years.