Vietnam’s trade deficit widened to USD 3.6 billion in July, but easing inflation supports currency stability, analysts say.
Vietnam’s inflation rate eased to 4.5% year-on-year in July, aligning with the central bank’s 4.5% target. The cooling price pressures come despite a widening trade deficit, which reached USD 3.6 billion last month.
The trade gap expanded due to strong import growth, particularly in energy and capital goods. Inflation has remained near the target average, reducing immediate pressure on monetary policy adjustments.
Analysts note the dong has shown resilience, supported by stable inflation and broader economic fundamentals.