Dong Devaluation View Playing Out

In line with a view we have been running since January, Vietnam devalued the dong by 5% to 18,500/US$ on November 25. We believe further pressure is in store in the short term and thus maintain our VND19,000/US$ end-2009 target. Meanwhile, we envisage further downside pressure on Vietnamese stocks as the extent of the macroeconomic readjustment sets in.

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