Loan Default Hurting Vietnam’s Image

The Wall Street Journal reports the fallout continues in Vietnam after the state-owned shipbuilder Vinashin defaulted on $60 million in loans — mostly to foreign investors who expected the Vietnamese government to back them.

The newspaper says the standoff between the government (which contends it is not responsible for Vinashin’s debts) and investors (who hope the government will support its own company) could undermine Vietnam’s efforts to attract global capital for infrastructure development.

Many foreign analysts still consider Vietnam one of the most favored frontier markets; even so, the more headlines the Vinashin crisis attracts, the greater the drag on Vietnam’s reputation and, likely, the inflow of foreign investments.

More on the fallout from Vietnam’s Vinashin scandal


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