Vietnam Battles Dark Side of Boom

 At a time when many emerging markets are trying to stem a destabilizing rise in their local currencies against the dollar, up-and-coming Vietnam is grappling with a rather different problem: Residents can't get enough of the U.S. greenback, as their own currency, the dong, threatens to spiral lower.

 Moody's Investors Service signaled the extent of the problems Wednesday, downgrading its rating on Vietnamese government debt to B1 from Ba3 in part because of the downward pressure on Vietnam's currency and worsening inflation. It also maintained a negative outlook on the country's ratings, citing the mounting debt problems at state-run Vietnam Shipbuilding Industry Group as another reason for the downgrade.

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