FDI Flows Help Contain Vietnam's Trade Deficit Pressure

Vietnam's trade deficit has reached $20.46 billion in the first eight months of this year, but surprisingly, it hasn't led to a significant increase in the US dollar price index or the interbank USD/VND exchange rate.

The exchange rate has even decreased in recent months, with the National Statistics Office reporting an average annual growth of 1.31% for the first eight months, and a decline of 0.36% from last year's August level.

According to experts, this can be attributed to the country's foreign direct investment (FDI) inflows, which have increased significantly in recent years.

The FDI sector has not only generated substantial dollar revenue through exports but also created a large amount of dollar demand for imported goods and services.