Much like the Iraqi Dinar, the Vietnamese Dong is an exotic currency, and one that fully qualifies as a viable alternative investment. Currency under ger pressure in 2020 currency under ger pressure in 2020 musings on markets january 2016 data vietnam real effective exchange rate singapore dollar to dong vietnamese dong predicted to continue. Vietnam Travel Guide. After being relatively stable last year, the foreign exchange rate of the Vietnamese dong against the US dollar is forecast to be under greater pressure in 2020 due to both internal and external headwinds. And that’s exactly what seems to be on the rise in recent months. In many respects, it could be a better long-term play than the Iraqi Dinar, or virtually any other exotic currency. The exchange rate currently hovers around 20-21 000 Vietnamese dong for $1 USD and everything else fluctuates relative to that. Investors fall into two groups, each with a diametrically opposed philosophy: Those who believe that a strong currency is good and those who believe a weak currency is the best choice. Vietnamese currency is call the “Vietnamese Dong” and is represented by VND in any of the Currency Exchange calculators. As 2018 unfolds, the mainstream financial markets – stocks and bonds – are looking increasingly risky. Its economic growth could take a serious leap forward, as the rest of the world struggles. Vietnamese Dong Attracts International Attention Despite a surging economy, Vietnam’s currency, the Dong, has managed to escape the attention of international traders and investors. As the saying goes, never keep all your eggs in one basket – that includes traditional investments like stocks and bonds. This is the process of moving production and jobs from high wage countries, like the US and Europe, and into countries where wages are very low. As employment grew, so did national and individual wealth. The Vietnamese government also allocates about 20% of its annual budget towards education. If you are close to retirement age, betting on Vietnam's currency is not a good choice since you may be dead before seeing a return. Global labor arbitrage means that companies will move from higher wage countries to lower wage countries, and Vietnam has some of the lowest wages in the world. The Vietnamese dong will remain stable for the rest of the year but may appreciate by 0.5 percent in 2021, VNDirect Securities Corp forecast. Vietnam is one of four countries, along with China, Cuba and Laos, that remains a one party socialist state, officially espousing communism. UPDATE (YOU MUST LOGIN TO SEE THE FORUM). This was necessary, as a growing population also means a growing need for jobs. First ... betting on Vietnam's currency is not a good choice since you … Vietnam Dong & Iraq Dinar SCAM exposed - … Vingroup’s forming a supply chain, working with producers and distributors, is a model that many Vietnamese companies in many sectors can learn from. In Alternative Investments for an Increasingly Volatile Stock Market, we discussed exotic currencies as an alternative investment for the next bear market in stocks. The State Bank of Vietnam issues and guarantees the currency of … That’s more than 70% higher than the $138 billion it produced in 2012. It’s always best to buy into any asset when the value is low, and investors are looking in other directions. Vietnam is one of the prime countries in that regard. As economic fortunes decline in places like the United States, Europe and Japan, businesses will look to move to areas where they can take advantage of lower prices. Last year, Vietnam registered the strongest economic growth in Southeast Asia, … Having at least a small percentage of your portfolio invested in foreign countries, can be a wise decision. For example, the average monthly wage in the US is $4,893. No one knows for sure where the financial markets are going. They said that rising levels of foreign direct investment have played a key role in economic development. The dong is seriously undervalued because Vietnam as a country is seriously undervalued. Exotic currencies, represent political diversification. Rich countries often devalue their currencies as a way to stimulate the domestic economy. The Vietnamese dong is closely connected to the US dollar through a crawling peg, which provides exchange rate stability between trading partners. E-Currency Info - Perfect Money, Solidtrustpay, AlertPay, Hd-Money, Payza , WMZ etc. With a population of nearly 100 million, Vietnam could become the next Japan or South Korea. Meanwhile, the average monthly wage in Vietnam is less than $150. The Vietnamese Dong as an Alternative Investment, Alternative Investments for an Increasingly Volatile Stock Market, 2017, Vietnam’s economy was estimated at $215 billion, average monthly wage in Vietnam is less than $150, self-directed Individual Retirement Account, Top 10 Most Valuable Currencies in the World, History of the Iraqi Dinar – Pre and Post Saddam Hussein, Best Foreign Currency Investments 2019 – FOREX Guide For Today. Against that backdrop, it only makes sense to spread your investment wings, and move into alternative investments. Those are the types of assets that tend to do well when conventional investments are struggling. Do you think the Dong is really a good investment? They can remain stable, despite turmoil in rich countries. Vietnamese currency forecast to continue weakening in 2020. And Treasury Vault is where you can do it. The currency has an exchange rate of near zero, but the economy is taking off, similar to other fast growth Asian economies. You may also invest in a bond portfolio, that not only holds different bond issues, but also various maturities to lower risk. Public Provident Fund (PPF) Unlike the VPF, it is a government-backed investment plan tailored for all types of individuals i.e. According to our Forecast System, USD to VND Forex pair is a not so good long-term (1-year) investment*. Long-Term Investment Much like the Iraqi Dinar, the Vietnamese Dong is an exotic currency, and one that fully qualifies as a viable alternative investment. This is true in part because those countries aren’t as dependent on the activity in the financial markets that the wealthier countries are. It’s also due to the country’s recent history as a communist dictatorship. A method to get Investment? That situation continues today, but much like China, Vietnam has liberalized its economy, and is experiencing rapid economic growth. Historically, the Vietnamese Dong … Track Rates . Considered one of the most stable Asian currencies, the dong has aided foreign direct investment. Apart from this, the Public Provident Fund also offers exemption on the interest income. In that environment, a $1,000 investment could eventually turn into $10,000. Above banners and links are advertisements only. But the Vietnamese dong is also fully qualified as an alternative investment. So, investment up to a sum of Rs 1.5 lakhs is completely exempted from tax. Vietnamese Dong . PricewaterhouseCoopers recently estimated that the country may be the fastest-growing of the world's economies with a potential annual GDP growth rate of 5.2%, which would make it the world's 20th largest economy by 2050. A little bit of gold, and a little bit of exotic currencies, can go a long way. View the currency market news and exchange rates to see currency strength. The currency value is nearly worthless right now, but it is attached to a nation that’s clearly going places. Vietnamese Dong deserves attention for investment as Vietnam’s rate of interest, external debt and exports point to a recovery in the country’s economy, and its exchange rates are more or less stable. And as a currency is a reflection of the country that issues it, as Vietnam’s wealth grows, so will the value of its currency. That kind of wage gap is begging to be exploited. Facing a rapidly growing population - it stands at 95 million today, half of whom are under 35, and up from 60 million in 1986 – Vietnam made large public investments in primary education. There are currently 1 users browsing this thread. First of all, in my opinion, I don't think so. In the meantime, unusually low wages are providing a catalyst for the country’s exceptional growth rate. Hoarding the U.S. dollar will not be a popular trend as depositing Vietnamese dong in banks is now more profitable, said a senior state official from the national financial market watchdog. Because the dong is practically worthless, a very small investment could potentially rise by several times. Despite yearly increases to minimum wage rates, Vietnam still has one of the lowest labor costs in Southeast Asia’s top emerging markets. Currencies represent the countries that issue them, much the way stocks represent the companies that issue those. For example, in 2017, Vietnam’s economy was estimated at $215 billion. Before you head off, check out our Travel Guide which includes some not-to-miss highlights when you visit Vietnam! The global economy is changing fast, and that kind of portfolio allocation will put you in a solid position to take advantage of the shifts. The country's economy is heavily reliant on foreign direct investment to attract capital from overseas, but that capital has been producing strong economic growth. Also the government will not let buying a Dong except for when it’s always used pertaining to financial commitment practices. The Vietnamese dong is not expected to rise in value or be significantly re-valued in the foreseeable future, according to Forbes. When an asset or currency is practically worthless, it represents the kind of investment that can return a massive profit. The reasons are very different from those that affect the Iraqi Dinar, but they’re well worth paying attention to nonetheless. All it needs to do is to remain stable, while currencies in rich countries, like the US, weaken. We do not endorse or vouch for any advertisers. That process may be accelerated in a global financial meltdown. Is investing your retirement into 401k a good idea?, Investing, 22 replies Could sum1 educate me on the idea of investing in vietnam dong?, Investing, 2 replies Good deal or not? But it has a major advantage of its own – low wages. #10 Competitive labor costs. What makes anyone think that is going to change any time soon? Consider holding between 10% and 15% of your portfolio in alternative investments. The currency has no tradable value outside of Vietnam, at least right now. Real estate represents an entirely different asset class from stocks. That means the country has been experiencing double-digit economic growth for the past five years. USDVND | A complete Vietnamese Dong currency overview by MarketWatch. In addition to the very low wage base, Vietnamese workers are developing a reputation for high productivity. . In January 2015 the State Bank of Vietnam devalued the dong to help Vietnamese exporters who rely on a competitive currency, reports Bloomberg. The implications for the Vietnamese dong should be obvious. In Alternative Investments for an Increasingly Volatile Stock Market we recommended that you expand into a greater cash position, real estate (including real estate investment trusts), precious metals and exotic currencies. As globalization has swept the planet, multinational companies have been taking advantage of labor arbitrage. One way investors can gain exposure to the Vietnamese economy is by investing in a Vietnam-focused exchange-traded fund (ETF), which can … ... Vietnam received US$38 billion in total registered investment capital last year, up 7 per cent from $35.5 billion in 2018. We’re ready to help you get started. (0 members and 1 guests). For example, with stocks, you may hold dozens of individual stocks, or a mutual fund or exchange traded fund (ETF) that holds hundreds of stocks. Stocks and real estate prices go up, investors get more and more bullish and flood the market with cash, which further inflates asset prices and the domestic currency, create a boom cycle. Vietnam is heading on the same course. Most experienced investors understand the necessity of diversification. That’s not nearly as negative a situation as it seems at first glance. Do you really think after over 33 years since the fall of Saigon the Dong has appreciated much? Investing in it's currency is like investing in it's government, after all, … But it’s also important to diversify beyond traditional investments. Within those three asset classes, you also diversify. Higher Levels of Foreign Direct Investment Will Lift Exports. Many Vietnamese companies also pay attention to corporate responsibility. I just wish somone would tell the truth, is the dinar a good investment and should i get into the dong Dong Guru. Put Your Banner Here NOW! Vietnam lacks Iraq’s obvious oil wealth. The Vietnamese Dong is currently trading at about 22,700 per US Dollar. . You might even invest in various sector funds, such as technology, healthcare and energy, as you look to take advantage of higher growth potential in specific industries. The particular wear and tear package in the governing has helped retain the ship community on Vietnam additionally, the Dong has stayed poor. 4/24/2012 10:50:28 am. Both philosophies favor long-term investments. Copyright ©2005 - 2010 Rolclub.com, All Rights Reserved. This is another asset class that could produce spectacular returns in the coming years. If you are close to retirement age, betting on Vietnam's currency is not a good choice since you may be dead before seeing a return. This is one of the primary reasons why the Vietnamese economy is one of the fastest growing in the world, and why it’s expected to join the ranks of the top 20 largest economies in the next decade. In a follow-up article, we focused on the Iraqi Dinar as one of those currencies. This should be mostly precious metals, like gold and silver, and a small position in exotic currencies, like the Vietnamese Dong. In time, each of those countries became wealthy, industrialized nations. Earn Upto 20% From ROLCLUB's Ads Sales By Referring Clients. The EIU reports that the Vietnamese economy grew by 6% last year and expects that figure to rise faster in 2016 and beyond. Precious metals often run countercyclical to traditional investments. Similar to Iraqi dinar, similar rumors are reported for Vietnamese dong and, most recently, the Egyptian pound. A lower valued currency also helps in attracting foreign investment, especially from a manufacturing perspective. All started out as low-wage countries, which was gradually recognized and exploited by large multinational companies. Finally, Viet Nam invested a lot in its human capital and infrastructure. Two examples of weak currencies are the Iraqi dinar and the Vietnamese dong. The time to get into the Vietnamese dong is now. Recently I was talked into buying VND Vietnam Dong. Secondly, we forget that Vietnam is a communist country. Weaker foreign direct investment inflow on the back of the Covid-19 pandemic and a likely preference by the central bank for a weaker Vietnamese dong to support export competitiveness would be key drivers of dong weakness over the near term, So my foolish question is, is there any truth to the matter of a revalue on the VND? When times are good, like it was in 2011 to 2013, or 2016 to 2017 (or pre-2008), there is a huge inflow of foreign investment into Vietnam. If you're thinking about buying the Vietnamese Dong, you've probably already done some homework.That's important, because the more you know about a foreign currency the more successful you're likely to be in your purchase.. You'll want to have good information, and work with a leading dealer.. Delivering Currencies and Precious Metals from Our Vault to your Door. Meanwhile, the stock market has been whipsawing back-and-forth, losing 400 points one day, and gaining 250 the next – only to repeat the cycle week in, week out. Thanks for any insight. The USDVND increased 4.0000 or 0.02% to 23,069.0000 on Monday January 18 from 23,065.0000 in the previous trading session. salaried, self-employed, student, retired person and so on. Currently the Vietnamese Dong with its lower value can export products at a cheaper level than other countries, and thus attract a considerable amount of foreign investment. This is true largely because of the association of Vietnam with decades of war, including the Vietnam War that finally ended in 1975. Vietnamese Dong Exchange Rate Forecast Monday, 18 January 2021. The Vietnamese capital has aged well and they have preserved the Old Quarter, monuments and the colonial architecture while developing the cities infrastructure and modernization.. Hanoi has one of the most dynamic job markets in Vietnam and the demand for labor is unprecedented in the last few years. Everything Related/ Unrelated To This Forum, Place Your Ad Here for 140$/Month and suggest lower. One of the major reasons for this is that global recessions and contagions don’t affect all countries equally. But instability is never good for the financial markets. And by at least one estimate, Vietnam’s economy is expected to be the 17th largest in the world by 2025. As such, Vietnam has a young and highly educated workforce. Practically speaking, the Dong is virtually worthless. It’s worth noting that the government heavily regulates transactions in relation to foreign currencies, with rules on inflow generally more relaxed than those on outflow. You invest between different asset classes – typically stocks, bonds, and a small amount of cash. Just as you would diversify between stocks, or industry sectors, it also makes sense to diversify between countries. What’s more, wages in Vietnam are even lower than they are in neighboring countries, like Thailand, Malaysia and the Philippines. Explore . Track Rates and get notified when the Vietnamese Dong matches your ideal rate so you can decide if it’s a good time to buy! The reasons are very different from those that affect the Iraqi Dinar, but they’re well worth paying attention to nonetheless. They can create their own supply chains in order to seize new opportunities from the domestic and global market. Now is the time to take a position in the Vietnamese dong. ... Vietnam Dong Vietnamese đồng Vietnamese Dong Exchange Rate Vietnamese Dong Revaluation Vietnamese Onga6c3bf66d5 Vietnam’s Central Bank You can purchase and hold the currency directly, or buy it and hold it through a self-directed Individual Retirement Account. Bond prices have been falling steadily in response to rising interest rates. Hanoi is the capital city of Vietnam and has a population of 7.8 million people. High-Frequency Trading vs. We’re not talking about the kinds of double-digit returns – 10% to 15% – that stock market investors have come to expect. Cash and cash equivalents enable you to protect principal value in volatile markets. On Wednesday evening, the State Bank of Vietnam (SBV) announced a decision to devalue the dong by one percent starting Thursday . A financial meltdown in the US or Europe may leave countries like Iraq and Vietnam relatively unaffected. The people that talked me into this think that any day now it will be revauled at over 1.00. Do you think the Dong is really a good investment? Current trends support that projection. It’s just a question of time before economic growth in Vietnam translates into a suddenly stronger currency. One way gives you the currency in your possession, the other holds it as a long-term investment. Investing with John Hancock., Investing, 12 replies Good time to start online investing ?, Investing, 12 replies HYIPs, Autosurfs, & Other Investment Programs, Current Autosurfs / Paid to Surf Programs, Referral, MLM, & Network Marketing Discussion, Webmaster Discussion / Making Money with a WebSite, Conventional Investing, Taxes, Offshore Banking & Legal Issues, Stocks, IPO, Options Bonds, Mutual Funds Discussion, Gambling, Casinos, Roulette, Gaming, Bookmakers Betting Discussion, Pips Program (Status = Starting with The Marsdens Trial), Discuss Coins : Bitcoin, Litecoin, Peercoin, Namecoin, Dogecoin, Worldcoin, Protoshares, Megacoin et. The Vietnamese dong represents less of the speculation, and more of a calculated risk – almost like a growth stock. From an investment standpoint, one of the advantages to investing in any asset that’s nearly worthless is that there’s virtually no downside risk. The currency of the issuing countries doesn’t have to take off for this play out either. 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