Soon, the Vietnamese Dong shall toward full revaluation. The economic cycle best tells that growth comes after the period of recession. History is testament to currency value fluctuations in the past. US dollar value, for instance, has suffered serious decline during the American Civil War, not to mention the First and Second World War. Nonetheless, currency value reached stability after warfare.
Vietnamese Dong, as of the moment, is the second least valuable money in the globe. The government initiated devaluation of the currency by 9%. In February 2011, Vietnam devalued its currency to bring down commodity prices. Economic experts invoked that devaluation of the Vietnamese Dong can improve domestic trade and stabilize national currency.
Unfortunately, Vietnamese Dong devaluation only led to losses particularly of purchasing power, not to mention investment value. In response to currency devaluation, Vietnam locals, who invested on Vietnamese Dong, suffered from poor currency valuation. As a result, the Vietnamese Dong was likely spent rather than saved to make the most of its value.
Devaluation of Vietnamese Dong did not intend to harm local wallets. The government failed to combat inflation resulting from the devaluation. Local employees failed to get a salary or wage raise in order to cope with local economic condition. What made it even worse is that electricity and fuel prices soared alongside expensive basic commodities.
Domestic economy, no doubt, endured from Vietnamese Dong devaluation in 2011. Local economy, specifically the national currency, suffered enough in the past year. In turn, it is high time for the Vietnamese Dong to redeem its value. The government has already exerted efforts toward national economic boost alongside Vietnamese Dong revaluation. According to experts, the Vietnamese Dong may bounce two or three times higher than the current value.
Since economic instability brought about devaluation of the Vietnamese Dong, Vietnamese Dong revaluation is likely to arise from a stable national economy. Vietnamese news recently revealed that Vietnam shall not have to resort in Vietnamese Dong devaluation anymore. Vietnam, through the recent summit, has already negotiated with a couple of foreign investors.
Local economy, in particular, has already evolved to attract foreign investment. From agriculture, the economy shifted into manufacturing of goods. Since 2011, national economic contribution of agriculture declined up to 25% in favour of industry. Industrial establishments, more often than not, engage into manufacturing clothes and footwear.
Globalization of Vietnam, moreover, is likely to generate additional investment opportunities. In the same way, it presents an opportunity to introduce the Vietnamese Dong to the global market. Vietnam recently joined the World Trade Organization (WTO). WTO happens to be the infamous international organization that regulates world trade. Besides, the Vietnamese Stock Exchange also expressed its intention to pursue international practice.
Nonetheless, the global community has got its share in the progress of Vietnamese economy. Remittance has been remarkable in improving local living standards in the country. Annual overseas remittance amounts to approximately $4 million. As an economic catalyst, it also helped out the country in achieving high GDP growth. Vietnamese economy, in fact, recorded the second highest GDP growth next to China. Sure, it shall boost the value of Vietnamese Dong, too.
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