Vietnam, Cambodia and Laos

RGE's Q1 2010 Outlook

Vietnam: Despite sharp declines in exports and foreign direct investment (FDI), Vietnam’s economy managed to grow 5.3% in 2009 due to aggressive fiscal and monetary policy measures. In 2010, Hanoi's policy orientation will be biased toward macroeconomic stability, but policymakers will be reluctant to give up growth objectives, especially with the 11th Communist Party Congress scheduled for 2011.

Read the Q1 2010 Vietnam Outlook.

Cambodia: The economic recovery will be moderate due to the sluggish recovery in U.S. export demand and global FDI flows. Cambodia suffered deflation for much of 2009 with prices still falling on a month-over-month basis at the end of the year due to lower commodity prices and capital inflows.

Read the Q1 2010 Cambodia Outlook.

Laos: Laos grew by an estimated 5.5%-6.5% in 2009, the slowest growth since the beginning of the decade, but the downturn was mild relative to other countries in the region. However, Laos was not fully spared from the global crisis: financing for the construction of hydroelectric power plants slowed; investment inflows into hydropower and mining sectors fell; correction in global commodity prices hit exports; and demand from Thailand, the largest Laotian export market, weakened.

Read the Q1 2010 Laos Outlook.