Neighbours uneasy with cheaper dong

Vietnam's decision to devalue its currency by 5% this week is likely to have a major impact on neighbouring countries, an expert on the country said.

"It is very attractive destination for investments and now it has just made itself more attractive," noted Wittaya Supatanakul, a retired general manager of Bangkok Bank's Vietnam office and now adviser to the Board of Investment's CLMV (Cambodia, Laos, Myanmar, Vietnam) projects.

Vietnam, one of the main competitors of Thailand, on Wednesday announced that it was devaluing its currency and raising interest rates.