- Vietnam's inflation rate recently topped 25%.
- The trade deficit in the first five months of 2008 stands at $14 billion vs. $11 billion for 2007.
- The prime interest rate to has been raised to 14%.
- Is a drastic currency devaluation coming?
For a country that was growing like a ‘New China’ until recently, things seem to have taken a terrible turn. As foreign investors lose confidence, the stock market continues to plummet.
Yet another lesson in emerging market investing. These are markets that lack depth, and large foreign investment flows can really distort valuations ( both upward and downward).
There is money to be made in markets like Vietnam and other emerging markets, provided that you buy cheap and are invested for the long term.