Why Invest in Vietnamese Dong

forex trading outlook today - Why Invest in Vietnamese Dong : The Vietnamese Dong Exchange Rate vs the Australian Dollar is currently 19400 VND to 1 AUD. Stated another way, 1 Australian dollar can buy 19,400 Vietnamese Dong.

That being said, it has never been a better time to Invest in the Vietnamese Dong. Although the Dong has been under pressure for sometime, as the Vietnamese Dong value chart to the bottom of this text shows, it has always been a compelling investment, and especially now that China is emerging to become a world power (some say it already has, especially with the new fifth generation stealth fighter it unveiled recently, its recent propulsion to the second largest economy, surpassing Japan, as well as its formidable population), it needs to feed and supply the ravenous North. Vietnam has a young, 90% literate population, and their labor is typically cheaper than China's. Its exports include the raw materials and agricultural products that China's sizable new middle class craves. Its oil reserves are also respectable, and oil production and exportation has fueled its recent economic expansion.

Vietnam was recently inducted into the World Trade Organization, which means it can now compete with other export-oriented countries.

It was not an easy path; Vietnam has recently endured high levels of inflation and tremendous uncertainty. With the recent weather extremes, Vietnam has faced power outages across the country, but especially during the hot summer months, where the populace sought relief from the heat in shopping malls and retail shops. This affects industrial output, as the factories could not fill orders. This also had an affect on agriculture, because the severe weather can produce droughts. The Vietnamese Dong exchange rate history shows how difficult it has been for the Vietnam Dong to gain against the Australian dollar.

However, "Vietnam has made a shift from a highly-centralised planned economy to a socialist-oriented market economy which use both directive and indicative planning (see Five-Year Plans of Vietnam). Over that period, the economy has experienced rapid growth." (Source: en.wikipedia.org/wiki/Economy_of_Vietnam).

The country has also embraced solar energy, since the country is well suited for high levels of direct sunlight. This will ensure consistent energy production to satiate the emerging demand.

Related Post: