The memories of Vietnam war still lingers in the mind of many US Citizens. But since the completion of the Vietnam war in 1975, the United States and Vietnam had gone on very different economic paths. On one hand, the United States developed economically to be THE most powerful economy in the World, with China and Japan still a distance second. On the other hand, Vietnam had languished within the realms of third world country, with the country still amongst the poorest nation in Asia and within South-East Asia.

As a result, Vietnam is unable to stabilise its own currency and against the US Dollar, the Vietnam Dong had maintained a continuous slide. Currently, 1 US Dollar trades at 19,607.84 Vietnam Dong, or 1 Vietnam Dong compared against 0.000051 US Dollar. With uncertain political setup as well as slow infrastructure development within Vietnam, we forecast that the exchange rate between the Vietnam Dong and the US Dollar will continue to slide in the medium term, probably crossing the 20k milestone at 1 US Dollar = 20,000 Vietnam Dong in the later part of 2011.

While this might not impact the farmers in Vietnam, inflation is bound to set in for the middle class which imports products from United States or the rest of Asia. Already, Vietnam had already faced a 12.1% increase in average food prices in Year 2010. This is also expected to further increase in Year 2011. Lastly, it is interesting to monitor if the Vietnam Government will further devalue its own currency, which had already happened thrice within a space of a year, from Nov 2009 – Nov 2010. As a result of this constant devaluation, the Vietnam currency is already trading much lower against the US Dollar in the black market, where capital control is more lax and it is easier to trade the currency with more liquidity. So for the tourist looking to travel within South-East Asia, Vietnam is one of the cheapest destinations, next to Thailand and Cambodia. Time for the US Citizens to come back to Vietnam again, just for leisure of course.

Over the last three decades, Vietnam has evolved and emerged into a robust economy with foreign investment policies that are attractive to businesses all over the world. The vibrant Vietnamese economy has seen many businesses, big and small sprout throughout the country. Vietnam can now be regarded as the new hub for trading within the Southeast Asian region. With the advent of e-commerce technology, it has become easier than before for Vietnamese to deal with the international market.

Given that foreign investors are seeking business opportunities in Vietnam, the country is fast becoming a major export destination. Owing to the low costs that businesses investing in Vietnam enjoy, Vietnam suppliers are now making their presence known through B2B platforms which allows them to connect with businesses needing specific products and services. By listing their products and services on B2B platforms, Vietnam suppliers will be able to market themselves to a larger consumer base, with no issue of geographical limitations arising. Reputable B2B trading platforms like Vigogo offer suppliers the opportunity to advertise what they have on sale and then get buying leads from potential business customers. This way, suppliers in Vietnam need not be confined to just selling their goods and services within the country or within the Southeast Asian region alone. They may be able to reap customers from as far as Europe and the USA.

Vietnam suppliers are diverse in the export products that they sell. Such products include apparel, furniture and furnishings, manufacturing machinery and so on. Vietnam seller can also engage the worldwide market through selling of locally produced agricultural commodities like rice, coffee and fruits. When potential business consumers log on to B2B websites, they will come across Vietnam suppliers and be able to get contact details straight off from the B2B site. This would potentially lead to an enquiry from the potential customer directly to the Vietnam supplier about the nature and quality of products being sold. When a suitable agreement can be made, the Vietnamese would have been able to surmount geographical boundaries and get a sale from an overseas business partner.