Got My Mind on the Paddies and the Paddies on My Mind
A propos of my recent investment, I thought it would be interesting to track some basic economic indicators in the countries where I’ve invested.
First up: Vietnam (via Thanh Nien News)
Vietnam’s intense growth – calculated at 8.16 percent in the first nine months of 2007 – has caused the price of food and foodstuffs to rise 8.12 percent so far this year.
The price of food, which forms more than 40 percent of the ‘basket of consumer goods’ used to calculate Vietnam’s rate of inflation, rose 13.94 percent in October.
The cost of rice and other grains alone increased by 15.98 percent.
Suppliers have blamed higher costs for production materials and transportation for the trend, which is feared to continue even more fiercely until years end.
Authorities are making efforts to fight artificial price inflation as well as encourage retailers to increase their stocks of goods.
As is it pertains to our Kiva.org investment we read of this news with mixed emotions.
On the downside, this sort of inflation invariably brings unwelcome anxiety; as it pertains to my Vietnamese partner I certainly feel for her as a consumer.
On the bright side, however, the influx of capital will certainly help our rice seller, Ms. Thi Vy Nguyen, increase her stock of goods, something beneficial not just for her and her family but also for the country (insofar as aggregate increased production in an agriculture-rich but capital-poor country like Vietnam should help counter inflation).
