Vietnam Currency Discussion Board

[RICK C]

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Friday, May 25 2007 @ 04:00 PM EDT
Vietnam the Second Thailand
Thursday, April 26 2007 @ 02:19 AM EDT
Contributed by: news

The VND, the currency of Vietnam, the fastest growing economy in Southeast Asia, has been drawing the special attention of derivatives traders.

Before Thailand was always the leading economy in Southeast Asia. Thailand was the 21st largest economy in 2006 in the world. The first few months of 2007 the Thai economy is the slowest growing of all Southeast Asian countries.

DBS group and ANZ bank have begun making transactions abroad with the contracts linked to the future value of the VND. The contracts worth $50mil that trade monthly may be double in a year, according to an estimate by Standard Chartered Bank.

Vietnam has lessened monetary controls this year and has announced its plan to push up the selling of state owned assets. The new currency market will give investors more opportunities to gain profit in the economy, which saw the growth rate of 7.7% in the first quarter, and the figure may reach 8.3% this year as forecast by the Asia Development Bank.

According to Peter Soh, Foreign Exchange Director in Singapore under DBS group, the biggest bank in Southeast Asia, all believe that Vietnam will follow the path China has gone, and that the VND will increase in value.