In the past few days, the currency exchange rates of Asian countries can be said to be bleak, but the most affected estimate is that the first thing that many people think of is Japan, but they did not expect Vietnam.
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In the face of internal and external troubles, Vietnam's vision of replacing the "factory of the world" will most likely soon be tormented to the point of exhaustion.
Vietnam's economy may suffer a waterloo
The rise of the dollar is undoubtedly a good thing for the United States, because it means that the economic problems of the United States can be alleviated to a certain extent, and what the United States thinks is a good thing is not a good thing for most people in the world.
Because this means that most of the world's exchange rate will be affected, many analysts believe that the sharp drop in the Vietnamese dong is caused by the alleged illegal issuance of bonds by the richest woman in Vietnam, Truong My Lan.
Media reports have led to massive outflows from Vietnam's banks and a ripple effect in the real estate, bond and stock markets, followed by a vicious cycle of rescue packages.
Although the VND briefly rebounded after hitting a new high, the increase in the VND in the following days was measibly low at less than 0.1%.
This value is not much, let alone reversing the situation, at most it only proves that the situation of the Vietnamese dong is improving, but this situation did not last long, so soon, the exchange rate of the US dollar to the Vietnamese dong began to fall.
Vietnam in crisis
Vietnam used to be a fast-growing country, and at that time, Vietnam had been pursuing high development to catch up with others, and as a result, the price of goods rose and the exchange rate fell.
At the same time, Vietnam has also absorbed a large amount of foreign capital in a short period of time, resulting in a severe fiscal and trade deficit.
Vietnam's foreign trade deficit has risen sharply, and the huge influx of foreign direct investment has led to Vietnam becoming a relatively attractive developing economy in the world.
But it's also why Vietnam's dependence on exports has made things even more difficult.
In addition, affected by the international economic environment and the changes in the world economic environment, the development of the US economy has brought a serious impact on Vietnam's economy, which is mainly manifested in inflation, currency depreciation, and stock market downturn.
The Vietnamese government did not react well to such a situation, which caused a series of economic problems.
After Zhang Meilan's arrest, almost all the deposits in Saigon Bank suddenly disappeared, and if this trend continues, let alone a bank, I am afraid that it will not take half a year for the entire financial system to follow suit.
Although Vietnam has undergone two major changes and many officials have been purged, the discontent of the people has not diminished, and it has even exacerbated the turmoil in the domestic economy.
For now, the only way out is to continue to invest money in Saigon Bank to see if anyone will forget about it, or to survive with government money.
Everyone knows that the United States is constantly reaping, and in order to avoid losses, most countries will adopt the same interest rate hike to prevent foreign capital outflows.
If you add to that the US debt crisis, then they can seize the opportunity to snatch all valuable state assets, such as Egypt and Argentina.
epilogue
Viet Nam's economic crisis had shown how vulnerable developing countries were in the face of global tides.
Since the degree of dependence on foreign funds and markets is relatively high, it is often greatly affected by changes in the world economic situation, so enhancing the autonomy and resilience of the domestic economy and reducing the degree of dependence on foreign countries is an important direction for the mainland's future development.
In addition, Vietnam's financial crisis has also sounded a wake-up call that stricter financial controls are necessary.
While pursuing economic growth, we must also maintain a high degree of vigilance against financial risks and take corresponding countermeasures to prevent them.
If the Government does not take measures, the implementation of this policy will have disastrous consequences, which will affect not only the economic stability and development of the country but also the world economy.
Nowadays, the relationship between countries in the world is getting closer and closer, and at the same time, they are also facing various risks and challenges, and how to balance internal and external factors, formulate reasonable economic policies, and strengthen financial supervision are the problems faced by all countries.
Only in this way can we ensure that our economy can continue to grow steadily, so that the majority of people can benefit from it.