Worries about renewed overheating

Holding a steady inflation for Vietnam economy is not an easy as any fast growing on FDI and weak export on agriculture products. Vietnam must find way to balance out the import and exported products. No good for Vietnam to buy high tech equipments from around the world and mainly the West and can not produce products that were good enough for export, or products that were good enough but facing anti-dumping policies. Vietnam must form an Alliance of Asian Forum to fight back such as anti-dumping policies. Inflation does have a positive correlation to politics.

Inflation is normally forecast-able in a developed economy, where reliable economic variables can be used in a complicated mathematical macroeconomics models. Vietnam should starting building mathematical macroeconomic models so that a future complex model can be determined to forecast inflation, but first Vietnam must honest with their economic variable. Predicting accurate inflation is not difficult but incorrect data will caused more harm than good.

Talking about the art of graphing. What's seemingly routine and minor depreciation of Dong can be projected on graph as a huge drop as presented with this article.

Vietnam’s economy is doing rather well (with 5.3% growth in GDP in 2009 when many are running at negative) and to ward off potential sudden inflation, it’s well within Vietnam’s right and reason to depreciate its currency some what.

With the [ASEAN + 1] FTA taking effect this year, better yet performance can be expected as more trades are likely among its ASEAN nations and with China in 2010.