Vietnam bonds fall on inflation concern

Jan 18, 2011. Vietnam’s benchmark five-year bonds declined for a second day after Australia & New Zealand Banking Group Ltd. said that the country’s inflation could still exceed the government’s target. The dong remained unchanged.

The Southeast Asian nation faces “the risk of an overheating economy” and “double-digit inflation threatens economic stability,” ANZ Singapore-based analyst Hai Pham and chief Asia economist Paul Gruenwald wrote in a note yesterday.

“Inflation in 2011 can certainly reach 10 percent or above,” Paul Gruenwald, ANZ’s chief Asia economist, said by telephone from Singapore. “In the absence of strong policy action, it will almost certainly exceed the government’s target.”

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