Thematic Report

Highlights: The VND’s depreciation level was 1.04% YTD by May 31, but the movements of exchange rates on the interbank and unofficial markets were quite different compared to those in the previous period. The main reasons leading to the depreciation of the VND include external factors such as escalating trade tensions between the US and China and the temporary supply constraints of foreign currencies. Outlook: It is forecast that the VND will depreciate 2.0 – 2.5% in the fundamental scenario.