Vietnam Next In Line

A bigger havoc tends to supersede a smaller incident at times. Whether the incident in question is small or not would depend on the degree of inference drawn. Amidst the hue and cry about US going into depression, UK cleaning its mess and Iceland melting, I guess people forgot about Vietnam. Vietnam has been a victim of instability risk.

The country has a trade deficit of 14.4 billion USD which has tripled over the last year. The imports have gone up by 67% and companies that were trading at a P/E of 30-40 last year are right now crawling at 10-20. The picture becomes clear when you look at the trade deficit in terms of the country's forex reserves that stand at just 20 billion USD. That sums up to 72% of the forex reserves. Analysts are looking at this as a trigger for a major crack in the economy and have put their money on several banks and brokerages falling. Another Bail Out??????