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Title: Vietnam Business Forecast Report Q3/2010
Category: Economy
Source: Business Monitor International Ltd.
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Date: 9/6/2010 Pages: 60 Language: English File Type: Size: 1,854 Kb
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Summary:
Two more devaluations down and Vietnam’s balance of payments position is in considerably better shape than in late 2009. With the inflow of foreign direct investment and remittances now larger than the trade defcit, BMI expect Hanoi’s fX reserve stockpile to increase from us$15.0bn to us$17.5bn over 2010. nonetheless, with fX reserves still at less than three months of imports, it still leaves Vietnam’s balance of payments in a precarious position. BMI thus continue to argue that monetary tightening will be needed in order to bring the economy back on an even keel.
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