Keep an eye on your Dong

SE Asia analysts are increasingly concerned at the state of the Vietnamese Dong. Although stable at the moment, the combination of low interest rates and the trade deficit is causing an inflated Dong, which may result in eventual devaluation. It's hoped that outside interest could help to sustain a robust Dong. But then there's always the risk, as in the '90s, that if the markets get over-excited the whole thing could just blow, leaving a terrible mess over a lot of portfolios.

If that happens, any investors caught with their pants down whilst still holding their Dong are going to find it very difficult to be taken seriously.