Vietnam Money Market Funds
The currency of Vietnam is the Dong. Of late, the Dong has become a major player in the forex market as the government of Vietnam is concentrating on its growing import and export industry. The government is promoting a lower value for the Dong with the hopes that it will increase the exports and facilitate the growth of the country's economy. |
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The Dong is valued against the dollar, and the Central Bank of Vietnam is not averse to interfering in the forex market to keep the currency at a stable value. This is primarily to create a stable economy and also to keep the export market competitive.
The economy of Vietnam is surely undergoing a change. In the year 2009, the government of the country issued its first US exchange traded fund to help investors hedge on the country's economy. This was a surprising development as there was no stock market in Vietnam until the year 2000. The fund is sponsored by Van Eck Global and they feel that Vietnam is underrepresented in the indices of the several emerging markets.
Just a few years ago, the economy of the country was run entirely by the government. However, today, nearly 65 percent of the country GDP is generated by private companies. Vietnam is the second largest producer of rice and coffee today, and nearly 22 percent of Vietnam's exports make their way to the US.
This new fund is a money market fund. It follows around 28 companies. Nearly 70 percent of the companies that the fund follows are based in Vietnam, while the remaining companies are from all over the world and have business operations in the country.
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