MID-TERM REPORT

INTERNATIONAL
FINANCE

How does the exchange rate change from 2000 to october

2018 in vietnam? Explain the main reasons cause its
movement.

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 GROUP 11: TEAM MEMBERS
1. Lương Nguyễn Hồng Nhung ...........................................................1601035109
2. Phan Long .......................................................................................1601035075
3. Vũ Thị Trúc Quỳnh .........................................................................1601035127
4. Nguyễn Trần Gia Phú ......................................................................1601025122
5. Trần Vũ Xuân Mai ..........................................................................1601035080
6. Nguyễn Thị Mai Thảo .....................................................................1601035138
7. Nguyễn Lê Bảo Trân ........................................................................1601035164

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 TABLE OF CONTENT

I. Introduction ......................................................................................................... 4
II. Vietnam exchange rate year 2000-2003 ............................................................. 6
III. Vietnam exchange rate year 2003-2006 ............................................................. 7
IV. Vietnam exchange rate year 2007-2010 ............................................................. 10
V. Vietnam exchange rate year 2010-2014 ............................................................. 13
VI. Vietnam exchange rate year 2014-2018 ............................................................. 16
VII. References ........................................................................................................... 21

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I. INTRODUCTION:
1. What is the exchange rate?
An exchange rate is the price of a nation’s currency in terms of another currency
(Investopedia).
2. The importance and influence of ER in VN economy
- Exchange rate plays an important role in eliminating the national currency border,
contributing to the exchange of economy between countries.
- Exchange rate plays a role in macroeconomic adjustment.
- Adjust the macroeconomic activities of the state.
- To increase the competitiveness of goods, in attracting foreign direct investment, to
participate in the national capital and international money markets.
- Exchange rate reflecting relations foreign currency supply and demand of a country.
Exchange rates play a major role in international trade, which allows them to match the
prices of goods and services produced in different countries. The export price of a
country will be calculated according to the price of the importing country if the exchange
rate between the currencies of the two countries is known. "When the currency of a
country devalues, foreigners realize that their exports are cheaper and that people in the
country find imports expensive from abroad. The rise in prices is counterproductive:
foreigners will have to pay more for the products of this country, the people in the
country pay less for foreign goods. Because of this that the exchange rate is used to
regulate a country's export promotion or importation policy.
Currency stabilization and exchange rates play an important role in monetary policy,
which is the goal of monetary policy that all countries are aiming for. A stable currency
and reasonable exchange rates will create, maintain, expand and develop domestic and
international economic relations, helping the domestic economy to have more favourable
conditions for regional and world integration.
Exchange rates are influenced by many factors, two of which are the purchasing power
of money and the correlation between supply and demand. As inflation rises, the
purchasing power of the local currency drops relative to the foreign currency, causing the
exchange rate of the currency against the local currency to rise (or the exchange rate of
the local currency against the foreign currency) and vice versa. If the local currency is
depreciated, the high exchange rate will have the following effect:
- Stimulate export activities, reduce imports, contribute to increase foreign exchange,
improve the balance of payment.
- With high exchange rate will encourage the import of capital, remittances, restrict on
how to transfer foreign currency abroad, resulting in increased purchasing power of
the currency.
3. Factors affecting the exchange rate

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Long-term factors:
- Relative prices: in the long run, the increased price of a country (relative to other
countries prices) makes the currency depreciate and a downward price of the relative
price makes the currency of that country increase.
- Taxation : This is the barrier to imports and protection of goods produced
domestically, this increase internal demand and lead to the appreciation of the
domestic currency. Tariffs and long term coin make money of a country rise.
However, one country implements the policy of "retrenchment” , the exchange rate
for them is not very meaningful.
- Foreign goods preferred: foreign goods preferred increase the demand for foreign
currency, caused the supply of foreign currency to increase sharply and the price of
copper local currency dropped. In the long run, the demand for exports of a country
makes the currency of the country increases while the demand for imported goods
increases that currency is down.
- Labor productivity: High labor productivity makes the price of a commodity cheaper
compared to other countries. Demand for exports of that country higher, leads to the
drag on the price of the currency. In the long run, due to labor productivity of a
country is high relative to other countries, so the currency of that country's price
increases.
- Psychological factors also affect prices: Most of the developing countries face
"dollarization" in the economy. That is the loss of beliefs in the currency, the people
and economic organizations that hold dollars trust this cash flow in exchange
payments. So USD demand is very high and the price of the currency down.
- Inflation rate: If the inflation rate of country A is higher than the inflation rate
country B, country A needs more money in exchange for a certain amount of money
country B, so the price of country A decreased.
- Trade Balance: It is related to import and export activities. Exports a lot make
exchange rates increase.
Short-term factors:
- Interest rate: Interest rate is a general economic variable that affects many different
targets in which exchange rates and interest rates are closely related together. In one
country if local interest rates rise while world interest rates are stable, will make
international capital inflows a lot because the interest rates are so attracting.
Therefore, the demand for money increase and the exchange rate also increase.
- Balance of Payments: The international balance of payments reflects the supply and
demand for foreign currency in the market, so it has a direct impact on the exchange
rate.

Take look back from 2000 to 2018

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 Exchange rate from 2000-2018

It can be seen that the general trend of VND exchange rate in 2000-2018 was the
increase, from 14000 VND / USD in 2000 to 23300 VND / USD in 2018. To be specific,
the period of witnessing the exchange rate between VND and USD increased sharply and
fastest is the period from 2008 to 2012. Moreover, the largest exchange rate fluctuations
were also recorded in the above period. In the period of 2005 - 2008 and the period of
2013 - 2015, the exchange rate was almost unchanged.

II. VIETNAM EXCHANGE RATE YEAR 2000-2003

Overall: From early 1999 to 2003, we applied the regime of fluctuations in exchange
rates at low rates of about 10.1%. Observing the fact that Vietnam dong depreciates
annually by 2% compared to 2002. At the end of 2003, when the US dollar lost record
price against other currencies in the national financial market, it appreciated against
Vietnamese

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 In 2002, Statistics show that the VND / USD exchange rate in the past eight months has
increased by 1.6%, an average increase of 0.2% per month. In the last 4 months, it had
increased to 2.4%. At that time, the VND / USD exchange rate was only 15,480-15,540,
not exceeding 15,550.
Three years from 2000 to 2003 were years of low inflation and the exchange rate was
relatively stable at 15,000. VND depreciated against the US dollar between 2001 and
2003, although the pace of devaluation has declined in the final months of the period.
Cause:
- Firstly, the dollar price is lower than many currencies in the region and the world
because the US economy has not recovered as expected, the US stock index
plummeted.
- The Iraq war that the US intended to conduct cause oil prices soared, gold prices will
rise as well.
- Export turnover of our country has decreased sharply in the first months of the year,
but in recent months has gradually increased. In the whole year, it rose by more than
5%.
- The euro's appreciation against the dollar will also lead to a certain amount of dollars
being converted into euros in payments as well as reserves.
-  When the dollar began its decline in 2002, maintaining a narrow band of
exchange rates helped Vietnam boost export of many facets.
The VND, when it was undervalued against the US dollar, made Vietnam's products
cheaper for US consumers than those from other countries such as Thailand, Malaysia
and the Philippines. Partly -> thanks to strong export growth, Vietnam's economy has
grown at an average 7.5% since 2000.

III. VIETNAM EXCHANGE RATE YEAR 2003-2006

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From the charts above, there are 3 main highlights that can be observed in Vietnam
exchange rate in the period of 2003-2006:
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- First, it can be seen from the first chart that official exchange rate of VND/USD was
on a slight but constant increase, starting from over 14,000 and reaching nearly
16,000 in 2006.
- However, exchange rate of many other currencies such as CNY, SGD, KRW,.., in
contrast, decreased over this period, which is a proof of the appreciation of VND.
This resulted in declining of the competitiveness of Vietnam exporting goods in
global market.
- Lastly, the line chart shows that since 2003 the difference between nominal
exchange rate and real exchange rate has widened until 2009. The incident was
caused by the fact that in 2003, inflation rate is significantly higher than the nominal
exchange rate devaluation causing the real exchange rate constantly falling.
Now, let’s dive into the factors that caused the above observed features to happen.
- The period was marked by a foreign exchange regulation on February 26, 1999
when the SBV introduced a managed floating exchange rate regime. Under this
regime, the official exchange rate is announced by the SBV equal to the average
interbank foreign exchange market of the previous day. Credit institutions set the
trading exchange rate with customers within a 0.1 percent band, which was a bit
loosened to ±0.25percent in July 2002 and kept unchanged until December 2006.
Narrow bands and consequently a very little gap between official and commercial
bank rates, indicate a fairly stable exchange rate movement in this period.
- This stability was maintained owing partly to a strong capital inflows FDI, official
development assistance (ODA), remarkable remittances and portfolio investment
flows started in 2006. In spite of official declaration by SBV, Vietnam’s exchange
rate regime in this period was classified to the category of conventional pegged
arrangement, according to the IMF de facto classification, effective from 1st Jan
2005 (IMF, 2006a). The rate of depreciation was kept within 1 percent as announced
by the central bank’s governor.
- Furthermore, the dong was adjusted to depreciate nominal prices against the dollar.
This nominal devaluation depends on the Central Bank's assessment of world trade
developments and the specific situation in the foreign exchange market. However,
the use of exchange rate policy tools has been remarkably different in the 2000-2006
and 2007-2010 periods. In the period of 2000-2006, the adjustment of exchange rate
policy was mainly to gradually increase the interbank rate announced by the State
Bank of Vietnam on a daily basis. Accordingly, the dong almost continuously
devalued against the dollar, except for some small time. The VND / USD average
interbank exchange rate has increased from over 14,000 in early 2000 to 16,091 at
the end of 2006.
- Overall, with the high inflation (particularly in 2004), Central Bank implemented
regulation strictly to increase interest rate while maintaining the stability of
exchange rate. To stabilize exchange rate, Central Bank also intervened in foreign
exchange market which worsened the problem of inflation. Although in 2006

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 inflation slightly decreased, we can conclude that exchange rate only has a joint
influence on inflation with monetary policy instead of direct effect.

IV. VIETNAM EXCHANGE RATE YEAR 2007-2010

VND/EUR

VND/USD

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From the charts above and the charts (Table 2 and 3) in the 2003-2006 period, there are
some facts that can be witnessed in Vietnam exchange rate in the period of 2007-2010:
- VND depreciated in its value. The VND / USD exchange rate remained stable at
16200 VND / USD in 2007. In the period from 2008 to 2010, the VND / USD
exchange rate increased continuously and reached 19500 VND / USD in the late
2010. Compared to some other strong currencies in the world, especially EUR, VND
significantly lost value
- In terms of amplitude, about two thirds of the time of 2009 and the last few months
of 2010, the fluctuation band of the exchange rate was kept very low. In 2008 and in
the period from the end of 2009 to the beginning of 2010, the fluctuation band of the
exchange rate was large.
- According to the table 2 in the 2003-2006 period since 2003 the difference between
nominal exchange rate and real exchange rate has widened until 2010.

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There are some reasons that can be given to explain the fluctuation of exchange rate of
Vietnam:
- In 2007, after Vietnam joined the WTO, foreign direct investment (FDI) was $ 20
billion. In principle, when the foreign investment capital in Vietnam increases, the
VND will appreciate to create a balance point- supply-demand relationship.
However, with the export-led development strategy, the State Bank issued VND,
bought this amount of foreign currency for the purpose of keeping the exchange rate
of VND in order to improve the competitiveness of products for exports. Moreover,
VND has been anchored to the US dollar for a long time, and almost unchanged
against the USD. Because the dollar devalued significantly against other currencies
in the world, so actually, VND decreased 15% on average compared to other strong
currencies.
- In 2008, Vietnam's economy is affected by the world economic crisis. Moreover, the
exchange rate band has been adjusted four times (in the first period of 2008; 10/03;
27/06 and 7/11) and the market rules were broken. The depreciation of VND was
due to high inflation (about 20%), trade deficit, the reduction of exports and foreign
investors' demand for withdrawal as a result of domestic economic worries. To
specify, in this period, the USD has risen against other currencies (5% -10%) as
many investors still consider USD as a safe haven in the crisis period. Foreign
investors continue to withdraw capital in Vietnam. VND 26,000 billion was
withdrawn from the bond market and VND 10,000 billion was withdrawn from the
stock market and converted to USD, resulting in high USD demand. There is also a
reason for the exchange rate to rise sharply during this period, it is foreign currency
speculation. Instead of selling to banks, people carry foreign currency to the free
market. Businesses that owed US loans, although not yet paid interest but they
bought USD for reserve for fear of rising prices. The large volume of US dollars
bought by companies made demand for foreign currency increase.
- In 2009, thanks to the timely intervention of the SBV, the USD fever was stopped.
Recognizing that the US dollar was at an alarming rate, the SBV publicly announced
its $ 20.7 billion foreign exchange reserves for the first time in history as market
data suggest that the dollar supply was rare.
- At the same time, the State Bank has issued a series of policies to stabilize the
foreign exchange market, such as strict control of foreign exchange agents (not
allowed to buy foreign currencies on the unofficial market without registration with
commercial banks), prohibited the purchase and sale of USD in foreign currencies to
spleen the margin, prohibited import of gold and allow the export of gold; sold
foreign currency market intervention through large commercial banks.
- In 2010, the gold rush of people and investors caused the demand for USD to rise
again. By the end of October 2010, the exchange rate between VND and USD rose
to 19500 VND / USD.

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In order to stabilize the exchange rate, the State Bank of Vietnam (SBV) has
implemented measures to overcome the pressure of exchange rate increase, such as
increasing the interbank rate and reducing the trading band from ± 5% ± 3%; required
large state corporations and corporations to sell foreign currencies to banks; selling
foreign currency to commercial banks with status below 5%; lower 3% of compulsory
reserve ratio for USD deposits.

Exchange rate (USD/VND) chart from 2010 – 2014. (source: XE.com Inc)

V. VIETNAM EXCHANGE RATE YEAR 2010-2014

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1. Year 2010:
2010 is a year of fluctuations in exchange rates on the market, two times the adjustment
of the interbank exchange rate (in April and October) increased by 5.2%. In particular,
exchange rate fluctuations with large amplitude. At the beginning of 2010, foreign
exchange rates at banks was at 18,800 - 19,100 VND / USD (buy – sell) and jumped to
19,495 – 19,500 at the end of this year. On the other hand, the exchange rate in the free
market fluctuated much higher, reaching 21,380 – 21,450 at the end of the year
The exchange rate difference between the black market and the official rate has reached
10%. This is the highest difference in Vietnam's financial history since 1990.
Cause: The USD / VND exchange rate fluctuates due to the influence of many factors:
- Crisis of confidence: With domestic instability, especially with the increase of
inflation (our country's inflation rate in 2010 reached 12%, the highest in history)
and state budget deficits, Most people no longer believe in the possibility of
interfering with macroeconomic situation. The government can pull back the
purchasing power of VND, which makes psychology of people use dollars and gold
to prevent risks.
- Deficit in international payment balance: trade deficit in 2010 was about 19.8% of
total export turnover, causing current account deficit about 10% of GDP. As a result,
the decline in foreign exchange reserves.
- In addition, it is also possible to mention the shortcomings in the exchange rate
policy: managed floating exchange rate regime has not been fully utilized, making a
great difference in the market in and out of the market. . And there are many
additional factors such as the demand for foreign currencies rising from time to time,
...
2. Year 2011:

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 2011 marked the successful adjustment of the State Bank of Vietnam's exchange rate
policy, initially leading to the period to stabilize the foreign exchange market.
From the beginning of 2011, the State Bank has strongly adjusted the interbank average
exchange rate with the Decision No. 230/2011 / QD - NHNN dated 11/02/2011: USD /
VND exchange rate increased by 9.3% from 18,932 to 20.693 VND / USD; Trading
range decreased from +/- 3% to +/-%. The new exchange rate reflects the supply and
demand of foreign currencies in the foreign exchange market. As a result, the real
exchange rate of REER was close to the base and the exchange rate on the free market
decreased, the difference narrowed gradually from 1,500 VND / USD at the beginning of
the year to 500 VND / USD in the beginning of March. /2011.
As a result of these measures, the foreign exchange market has gradually stabilized,
exchange rate tensions have been pushed back. At the end of 2011, the official exchange
rate increased only by 10.01% y / y and stood at VND 20,820 / USD. The exchange rates
posted at commercial banks were relatively stable.
Exchange rate stability in 2011 was due to several reasons:
- The appropriate impact of the State Bank on the interbank rates
- In order to gradually reduce dollarization in the economy, the State Bank of Vietnam
(SBV) has adopted a more rigid mechanism of dollar mobilization rates; To tighten,
inspect and handle the illegal trading of foreign currencies.
- The mobilizing interest rate in local currency is much higher than the foreign
currency deposit rate (over 14% / year compared to 2% / year). The amount of
foreign currency from sources in Vietnam is stable, avoiding the scarcity of
purchasing power and selling power.

3. Year 2012 – 2014:

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 Overview, the period 2012 - 2014 marks the stability of the foreign exchange market
with two background prices after two exchange rate adjustments. Each cycle was started
at the ceiling price when the exchange rate increased sharply and was adjusted in the
previous period, then stabilized and fluctuated around the interbank average, then
increase and start the new cycle. Specifically, the price of 20,803, +/- 1% is maintained
at the end of 2011 to the end of June 2013 (18 months). Price level of 21,036 +/- 1% is
maintained for the next 12 months (until the end of December)
Impact on the exchange rate: Exchange rate stability is supported by the following
factors:
- State orientation by controlling the dollarization of the market, and the initial
success of policy in the previous period.
- The stability of the dollar value in the world
- The confidence of the people in the resilience and growth of the economy in this
period, thanks to the increased transparency in the gold market and the loss of tax
revenues of the state budget was reduced through Decree 24. gold operations on the
framework.

VI. VIETNAM EXCHANGE RATE YEAR 2015-2018

1. Year 2015
It can be seen that the exchange rate in 2015 tends to increase, divided into two phases:
slightly increase in the first 7 months of the year and a great change in the remaining
months to reach 22,520 - 22,547 VND / USD (buy in - on December 31, 2015, increased
by VND 1,098 - 1,122 / USD (about 5%) compared to 12/2014.
The fluctuation of the exchange rate in 2015, can consider the following reasons:
- The policy of adjusting the interbank exchange rate four times (increasing about 4%)
and 02 times of raising the trading band of commercial banks against the average
inter-bank exchange rate. (up from +/- 1% to +/- 3%). This policy directly affects
exchange rates in the market increases the allowable margin of the exchange rate;
Affecting the confidence of the market to the state bank.
- The impact of the domestic economy coupled with the trade deficit increased again.
There are signs of recovery, but production depends heavily on Chinese materials.
Vietnam's trade deficit is estimated at $ 32.3 billion, up 12.5 percent from the
previous year. . The trade deficit reduced the balance of payments surplus in the
country. As a result, the supply of foreign currencies has declined, while the
compulsory reserve pressure of the State Bank has been increasing due to the growth
of imports. As a result, the balance of supply and demand of foreign currencies has
been out of balance to influence, influence and depress the dong.
 The world economy in 2015 unfavorable to stabilize the exchange rate of
Vietnam.

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2. Year 2016
In 2016, USD moved in a minimal fluctuation at ±1,5% in this year. Although Vietnam
is following a more flexible exchange rate regime, it was not ready to let the dong/dollar
exchange rate float freely as Vietnam's financial market is not yet fully developed and
domestic businesses do not have enough insurance mechanisms in place to reduce the
risk of dealing in foreign currencies. Foreign Exchange Reserve reached $41 billion in
Quarter 4, equal to 2.5 months of import. Although there are certain changes from time
to time, 2016 was recognized as a relatively stable year of the exchange rate and foreign
exchange markets. At the end of March 12-2016, common rates at 22.790 to 22.800
VND/USD, increased by 1.1% compared to the end of 2015.
Despite concerns in 2016 that the dong would once more come under pressure, the
$:VND exchange rate remained fairly stable, with the exception of two spikes in August
and December that quickly receded. Vietnam’s strong economic performance overall
attributes to:
- A shift towards an inflation-based monetary policy
- More flexible exchange rate fixing would strengthen the country’s foreign trade and
investment, especially after Vietnam has entered a variety of free trade agreements
(FTAs) with organizations such as the Eurasian Economic Union, the European
Union, South Korea and the Trans-Pacific Partnership (TPP) last year.
- The Fed’s slower-than-expected monetary tightening
- US Federal Reserve decided to delay USD interest rate in September.
- The slow inflation rate interest of VND

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 - 2017 saw an ongoing trend of USD price on free market is lower than those on listed
price of many Vietnamese commercial banks. No major changes were made in
exchange rate throughout the year because of the positive growth in international
monetary as well as the trade balance in Vietnam was still mainly exceed in
import.This is an important condition for maintaining foreign currency market
stability.
- The impact of SBV on exchange rate – daily average interbank exchange rate.
3. Year 2017
In 2017, saw an ongoing trend of USD price on free market is lower than those on listed
price of many Vietnamese commercial banks. No major changes were made in exchange
rate throughout the year because of the positive growth in international monetary as well
as the trade balance in Vietnam was still mainly exceed in import.This is an important
condition for maintaining foreign currency market stability.

Since the start of 2017, the USD/VND exchange rate hovered at around VND 22,700 to
the dollar. Growing foreign currency credit is one of the factors expected to challenge the
foreign exchange market. A report by the National Financial Supervisory Commission
showed that in the first eight months, foreign currency credit accounted for 8.5 percent of
all credit and grew 11.5 percent over late 2016, when growth reached 1.7 percent. It is
mostly associated with commercial joint stock banks. A higher trade deficit and an
expected increase of the US dollar value after a period of decline are also responsible for
potential changes on the foreign exchange market.
In a report on the economic outlook in 2018, the National Financial Supervisory
Commission said the weak U.S. dollar made the dollar-dong exchange rate relatively
stable last year. In late 2017, the USD Index dropped by 9.1% compared to early 2017
although the U.S. Federal Reserve (Fed) had hiked interest rates several times. Data of

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 the World Bank shows remittances to Vietnam increased about 16% in 2017 to an
estimated US$13.8 billion, the highest in five years.
4. Year 2018
The value of the Vietnam Dong (VND) has remained remarkably stable this year, despite
depreciations in several Emerging Market (EM) currencies that prompted significant
capital outflows from those countries. Furthermore, in May Fitch upgraded Vietnam’s
credit rating by one notch (to BB), the first time since early 2014, citing the country’s
improved ability to absorb external shocks. Vietnam’s improved resilience and stable
USD/VND exchange rate is attributable to:
- The Government’s Prudent Macroeconomic Management
FX reserves recently reached 3.5 months’ worth of imports (up from 2.3 months at the
end of 2016), and Vietnam’s inflation rate is below 3% .
- The Continued Growth of Capital Inflows to Vietnam
FII rose by an estimated 67% to USD 2.3 billion; FDI inflows are on-track to exceed 7%
of GDP in 2018, and have averaged 7.5%/GDP over the last five years .
- Vietnam’s c. 3% of GDP Trade Surplus
The country has run current account (C/A) surpluses for over five years in a row, which
averaged more than 3%/GDP annually; electronics and mobile phones now account for
over one-third of Vietnam’s exports.
Furthermore, the State Bank of Vietnam (SBV) implemented a “crawling peg” on the
official USD/VND exchange rate in the beginning of 2016 that effectively alleviated the
speculative pressures on the Dong which triggered steep depreciations of the country’s
currency in the past.

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US Dollar Index has risen 4% since mid-April, driven by the widening gap between
interest rates in the US, and those in Europe, Japan, and other parts of the world. Traders
had been betting that the dollar would continue falling in value this year, after having
plunged by about 11% in 2017, driven by the continued deterioration of America’s
current account and government budget deficits this year. However, a “short squeeze” on
the dollar forced those leveraged investors to rapidly close out their leveraged short
positions.
Moreover, the SBV has injected a net value of VND92.06 trillion (US$3.96 billion) into
the monetary market last month, ensuring the liquidity demand of the market.
Although the crisis in America - China trade war is still emerging, the macroeconomic
situation in Vietnam is believed to be stable. In Vietnam, the inflation rate is still within
control. The CPI (consumer price index) by the end of August has increased by 3.98
percent compared with the same period last year. The interest rate has been stable at a
low level, thus supporting businesses’ plans to expand production. However, if People’s
Bank of China continues depreciating against the dollar, Vietnam will need to act
flexibly in adjusting the forex.
 In conclusion, from 2015 to 2018, Vietnam Dong has shown an increasing effort to
keep up with the fast pace of international currency. Despite having a rough start in the
end of 2015, VND continues to recover from major changes in USD and
CNY. However, domestic businesses only account for 30% of Vietnam total export.
This means that even if SVB implemented even more methods to control VND, it would
still not be enough to improve trade balance deficit. Depreciation in the long term can’t
help Vietnam to raise its export share. However, keep the VND price at a low barrier can
reduce our risks to be in dependance of foreign reserve. The recent 2015-2018 report has
implied that Vietnam still need to maintain a flexible exchange rate simultaneously with
improvement in goods quality for sustainable development.

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https://vnexpress.net
https://tradingeconomics.com/vietnam/currency?fbclid=IwAR1U74RPfZmZ3zsG1ni4tMa
7km6XBlML_4kCIT-7yskoar66c2Py3RNomDE
https://vietnamnews.vn/economy
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2018/?fbclid=IwAR3Hm37l06Ex9jwfId-
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pN8cHLK86vvxT7UovWIT7oQzUPqIyWYZ6TiN8
https://theculturetrip.com/asia/vietnam/articles/vnd-explaining-vietnams-
currency/?fbclid=IwAR1PheBC1H8iuKF_qyBtZAwwJJu04QY8hUX_hHtZ4zLFT41TR78
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