Le Viêt Nam, aujourd'hui

The dong looks stuck for now with the unappealing title of Asia's worst performing currency, despite moves by the central bank to dip into foreign reserves to bolster it.

Vietnam's inflation reached an annual rate of 23 percent this month, official estimates said Wednesday, adding to a year-long price spiral that has hurt businesses and consumers alike.

Standard & Poor's recently revised its methodology and assumptions for rating sovereign governments.

Fitch Ratings, the global well-known rating agency, has announced that Vietnam's capacity of long-term debt payment (including debts in both dong and US dollar) was rated at B+ meanwhile its short term debt payment capacity was assessed at B. These grades were maintained from late July 2010 by Fitch, according to VnExpress.

In an interview with Tuoi Tre, Doctor Nguyen Dinh Cung, deputy head of the Central Institute for Economic Management, said Vietnam must reform its economy if it wants to develop further.

Business confidence and outlook among European businesses in Vietnam in Q3/2011 continued to fall for a 3rd consecutive quarter after losing 9 points quarter on quarter in the Q2's survey, said the latest survey of the European Chamber of Commerce in Vietnam (EuroCham).

Vietnam will have to struggle to restrain inflation at 17 percent this year after consumer prices spiralled out of control in recent months, said Nguyen Tien Thoa, head of the Price Management Department at the finance ministry.

Vietnamese inflation accelerated for an 11th month in July after the central bank cut a key interest rate even as the nation faces the fastest price gains in Asia.

Vietnam plans to cut taxes and allow some late payments as the government takes steps to keep the economy stable in the second half, including continued efforts to tame inflation, prime minister Nguyen Tan Dung said.

As Vietnam fights to beat back raging inflation, many of its small and mid-sized businesses - disadvantaged even in good times - are struggling to survive the battle.

Amid a host of deep-seated economic problems, Vietnam's large trade deficit shows no sign of abating. But the "Vietnam effect" helped Switzerland to post a record monthly trade surplus in May, according to Swiss customs.

The two-way trade between Vietnam and France rose to 772.4 million euros (US$1.1 billion) in the first four months of 2011, up by 24.3 per cent compared with the same period last year.

Although the country's exports have made remarkable progress, the danger of the ballooning trade deficit is still threatening Vietnam, experts said at a conference on the trade policy for the stable development of Vietnam held Tuesday by the Ministry of Industry and Trade.

Vietnam on Friday lowered its economic growth target for the year, while raising its inflation forecast for the second time in a month in the face of mounting price pressures.