The past decade marked a significant turning point for Vietnam and the country’s emergence as a global market participant. By 2007, Vietnam, like many emerging markets, had seen an extreme influx of capital from foreign investors. As the global economic crisis started to impact on all nations, Vietnam was not alone in facing the consequences. However, Vietnam’s economic rollercoaster during the past two years took a slightly different course than many other Asian nations due to an internally generated crisis that preceded the global financial meltdown by more than six months. The outcome, pleasantly enough, was a smoother ride than most nations experienced through the bumpiest world economy in decades.

In early 2008, Vietnam’s economy was overheating, with soaring inflation and a rising trade deficit. Real estate speculation was rampant, with lines of buyers queuing around the block for high-end apartment launches. The government was forced to put the brakes on the econ