Just returned from a 1-week trip to Sai Gon with the intent of finding out how the current crisis is affecting the country. Believe(d?) that the crisis would just be a hiccup and the country and the Vietnamese will be resilient and move on.
What you see in the news are: 25%inflation, volatile exchange rate, stock market is down. Gas price was just hiked to 19,000 Dong per liter (about US$1.15).
A talk with a very progressive and dynamic businessman revealed that their company stocked up on imported equipment before the taxes and exchange rate went up. But, they have no intention to dispose of the inventory quickly since their sales contracts are in Dong and they are afraid of further depreciation of the local currency.
Another friend is frustrated that his business license has not been granted by the government since there are more than 20 applicants for the same business license. He further commented that he's glad this crisis came sooner than later, otherwise the effects would be more difficult.
On the other hand, another friend just bought a luxury of luxuries just so he could buy at a lower exchange rate. You should see the luxuries in cars, brand-names and some restaurants; someone just imported a private plane, not to mention the 13 Rolls Royces reported in the news.
More upbeat stories from a consultant friend who enjoys a flood of both American and Japanese clients, many wanting to build luxury resorts.
By the way, all friends above are locals.
A problem is the terrible traffic in Sai Gon. In the 90s, everything was 30 minutes or less away. Now give it an hour. Truly hope the government acts on this problem, say by simply limiting the number of cars and motorcycles allowed to be registered every year. They can do it.
Otherwise Sai Gon remains to be a charmer. Walk the streets and feel safe (be careful about crossing the streets, though). Drink "cafe da" (iced coffee) on small sidewalk benches and still read the International Herald Tribune(yesterday's). Enjoy all the Vietnamese food at very good prices. And dont fail to go for the Sofitel's brasserie buffet and eat great salads, canapes, pate and desserts (US$16 but worth twice).
So, is it believe or believed? We'll see what happens until the end of the year.
But, am going back! Am inviting other businessmen to take a look at Viet Nam. Maybe, i believe.
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