If you have been following the currency markets in the last few years, you may have seen a fair amount of talk about investing in the Vietnamese Dong. The question many investors are looking at is whether or not to invest in currency that is currently selling at a rate of one million Dong for $90. Not only does this mean that outside of their country this currency is barely worth the paper it is printed on, but it looks as though it could be a very poor investment, as this exchange rate has not changed much in many years.

If this is the case, then why would anyone in their right minds want to invest even $90 in the Vietnamese Dong? To start with, one has to understand the nature of investing and the simple adage "nothing ventured, nothing gained." The reality is that, if you are looking for a short term investment that offers a reasonable return, the currency market is not the place for you. On the other hand, if you have a little extra money that you can leave invested over the long term, this might represent a very good investment.

Will the Value of the Vietnamese Dong Go Up?

This is, of course, subject to many things, starting with the fact that you are dealing with a communist country that maintains very strict control over their currency. Having said this, they have recently been accepted into the World Trade Organization and now have a rapidly expanding infrastructure. How can this affect the value of a currency that is currently worth so little? This depends on who you talk to, but if past history is anything to go by, the effect can only be positive.

History has shown us time and again that as a country becomes more proactive and more productive, their economy will improve. With an improved economy, the standard of living goes up and consumer demands rise. This leads to more trade with the rest of the world, and as a natural result of this: the exchange rate of their currency achieves more value. So, at this point, the Vietnamese Dong that you invested in for practically nothing will suddenly become more valuable.

Are there any guarantees that the Vietnamese Dong you buy will increase significantly in value at any time in the near future? As with any currency you invest in, there are absolutely no guarantees. In fact, as you should know about any type of investment, you should never invest money that you cannot afford to let sit for long periods of time - or, in fact, to lose.

At Deal or Buy Dinar, we believe that the Vietnamese Dong is not going to remain at these incredibly low rates for much longer. As such, those who take the risk of investing in large amounts of Dong now are going to realize a very significant return on their investment within a very short period of time. There may never be such an investment opportunity like this again.