Vietnam's Inflation Accelerates to Fastest Since 1995

Dec. 25 (Bloomberg) -- Vietnam's inflation accelerated to the fastest since 1995, adding to pressure on the government to let the dong strengthen and make imported goods cheaper.

Consumer prices increased 12.6 percent in December compared with the same month last year, the General Statistics Office said in Hanoi today. Prices rose 2.9 percent from November.

Real estate market to enjoy a boom in 2008

For the last month, a lot of investors have been flocking from HCM City to Binh Duong province to hunt for land. Just within one month, the land price in Chanh Nghia urban area in Thu Dau Mot town has increased by ten folds, now trading at VND26mil/sq m. Meanwhile, land owners in Thuan An district do not sell land at this moment for fear that they would take losses if the land price increases further.

Analyzing Vietnam's real estate boom

The real estate industry is currently booming in Vietnam, opening up greater opportunities for local and international investors to enjoy, said Nguyen Manh Ha, head of the Ministry of Construction's Housing Management Department.

He says Vietnam's urbanization is expected to increase its total current land use more than fourfold by 2020 from 105,000 hectares to 460,000 hectares.

Vietnam gaining quickly on Thailand in economic race

The Nation newspaper on December 2 quoted Preechachai Chauychoo, a Thai businessman who has lived in Viet Nam for the last 15 years as saying that it would take Viet Nam just over a decade to catch up with Thailand’s current stage of development, given its rapid growth rates.

According to the paper, Viet Nam is currently the darling of foreign investors from Japan, China’s Taiwan, the Republic of Korea, Singapore, the United States and the European Union. The country joined the World Trade Organisation (WTO) in January of this year and has attracted a combined direct investment inflow of US$16 billion in the first 11 months of 2007.

Foreign investors confident of success in Viet Nam

Optimistic about Viet Nam ’s rapid economic growth and accelerated reforms, foreign investors show their confidence in their success and are investing large amounts into the country.

This statement is typical of comments from many participants at a seminar titled “ Viet Nam : A rising star – Prospect for Investment and Business” held in Ha Noi on November 26.

Malaysia ’s Ireka Development Management President and Chief Executive Officer Lai Voon Hon reiterated the sentiment by saying Viet Nam ’s recent high economic growth is appealing to Malaysian investors.