Vietnam desperately needs inflows of overseas capital, but the attractiveness of the country for foreign investment is in danger because of energy shortage. The Vietnamese dong remained stable today.
Retail electricity prices were too low in Vietnam to attract investors to the power industry. The government is trying to address the issue by raising prices, but it may not do so soon enough. Meanwhile, low retail power prices attracted investors to electricity-intensive industries, adding to the problem.
Obviously, in modern times no economy can perform well without enough electricity. And the Vietnamese economy needs foreign investments as country’s growth last year was worst since 1999.
USD/VND traded at 21,125 and EUR/VND was at 28,876.50 as of 00:46 GMT today.
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