Vietnam's “economic miracle” may be at an end
Media reports are questioning whether the “economic miracle” in Vietnam has ended. The country has been undergoing a financial crisis that appears to have reached its height when two major companies were found to be billions of dollars in debt, which they had hidden behind false accounting statements. The country is also currently struggling with excessive red tape, high inflation and a potential banking crisis.
In response Moody's bond rating service downgraded Vietnam's credit rating in March 2012 threatening the country's attempts to attract foreign investors. While the government is making some reforms, experts say that a long-term solution will not be found until substantial systematic reforms are made.
The case demonstrates the importance of conducting proper due diligence before entering Vietnam.