Foreign investment in Vietnam has dropped by about a third since September 2011, with some blaming a weakening economy, inflation, high debt, and the fallout from a property market crash.
With sustainable growth around 5% a year, Vietnam should be able to reduce the risk of high inflation.
These economic woes have also led to political tensions between Prime Minister Nguyen Tan Dung and President Troung Tan Sang. These may surface at the Communist Party’s Central Committee meeting currently taking place, and there will certainly be discussions during the meeting about how the weakening Vietnamese economy can be recharged.
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