Vietnam Confronts Economic Quagmire

Although Vietnam's GDP is growing at 7% annually, double digit price increases, a downgrade on the country's sovereign debt, and an unstable currency make Vietnam's economy one of the most unstable in the region.  A big contributor to the instability is the existence of giant state-owned companies, especially Vinashin.  Vietnam's state-owned companies use 40% of the invested capital, but produce only 25% of the country's output.  Vinashin is now receiving a multi-billion dollar bailout from the government, and many investors believe that unless the Vietnamese government is willing to allow more state-owned companies to privatize or go under, the economy won't grow to its potential.

Vietnam Confronts Economic Quagmire - NYTimes.com

Asia Roaring Out of Recession

Europe remains in a "funk," the U.S. looks uncertain, and Asia is roaring back with double digit growth. In the meantime, consumers in emerging markets combined spent more on consumer goods than U.S. consumers did. It all adds up to a very different global economic picture than 20 years ago. 20 years ago, the U.S. consumer was king, and all the world's exporters paid the most attention to the U.S. which gave Americans unprecedented power to dictate consumer tastes in fashion and electronics. The tide has shifted away from America, and along with that shift, the U.S. influence on a global scale will wane as well.