However, we know little about reserves and other short- term lending. But on the whole foreign exchange and other financial markets remained stable during the year, in stark contrast to the ongoing chaos in many other countries of the region. This was managed by the increase in the trading band. Numbers employed in foreign-invested rims totalled some 300,000 at the end of the year, a tiny increase on the year. There have not been any major lay-offs.
Foreign investors continue to avoid, relatively speaking, the rural areas.
However, the pattern of investment in 1998 showed some shift towards 'production' and away from real estate, which is highly surprising given the high levels of spare capacity in office and hotel developments in both Hanoi and Ho Chi Minh City. This was a significant decline on 1997, but showed significant changes of direction. 43 of the projects were in industry - the stress on real estate seen earlier has now been replaced by interest in industry. This is because Vietnam's still protected and 'unreformed' economy was her major source of protection. Vietnam's success in this area will not prevent her from experiencing further difficulties through 1999, especially if stock build-ups are unwound.