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Vietnam dong holds near 26,277 despite widening trade deficit

Commerzbank analysts attributed the dong’s steadiness to easing July inflation at 4.5% year-on-year, even as the trade deficit rose to USD 3.6 billion on stronger imports.

Reported · Written up by our desk · EM Currencies

FXStreet highlights Commerzbank analysis saying Vietnam’s dong has stayed stable around 26,277 per USD, with the currency slightly stronger year-to-date even as external pressures build.

The analysts pointed to July inflation cooling to 4.5% year-on-year, keeping the average near Vietnam’s 4.5% target.

They also noted the trade deficit widened to USD 3.6 billion, driven by strong import growth linked to energy and capital goods.

Looking ahead, Commerzbank flagged potential risks for steel exports tied to future CBAM-related effects, but said USD/VND has remained largely unchanged despite the headwinds.

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