Vietnamese Dong as a potential Prong

[vivazebull]

Hi,

Not a currency guy but noticed the economy in Viet has been growing quickly, the state oilers still have a lot of that, and there's talk of privatizing state companies and all of that jazz.
Kept a few extra dongs after a holiday for a little giggle. Noticed its been quite stable recently.
Wondering if anyone has any thoughts on it.
Cheers.

 

[greggles]

I don't think the Vietnamese Dong is going to make making any significant gains in a hurry.

Here's a chart from 2006-2017. The $US bought about 16,000 Dong in 2006 and buys around 22,500 today. The long term trend is quite apparent.



Vietnam is still a developing economy and is unlikely to be able to compete with Western first world economies in the short term. Unless the US economy completely tanks, I can't see the Dong making much in the way of real gains anytime soon.